Second Property Interest Only Mortgage secured using 100% Bonus Income

THE SCENARIO

I was approached by a client who had already exchanged on a house in Devon and urgently needed to source this second property interest only mortgage requirement. The house was bought at £1.89 million and he was looking for a 75% mortgage on the purchase at an interest-only rate.

This was complicated by the fact that he bought this property before selling his prime residence in Hertfordshire, valued at £1.8 million with an existing mortgage of £1.2 million. His original plan was to sell his current house in Hertfordshire before buying a new one but the process was sped up as the house in Devon was his dream property.

He decided to keep the house in Hertfordshire as an investment, rather than making a quick sale. For this reason he needed to raise an additional £200,000 in order to finance the deposit in Devon. As the Vice President of a large corporation a lot of my client’s income was dependent upon his bonuses.

Due to these circumstances what he needed was deemed unaffordable by most banks, so I had to find a private bank that was willing to take all of his bonus income into account. This was a challenge as most banks would only consider 50% of this.  

OUR SOLUTION

Despite these factors I managed to achieve this for my client - securing an interest only rate of 3.19% at a three year fixed rate for the Devon property. I did this by persuading one private bank to fully consider the consistency of his bonus payments when assessing the affordability. No one else was able to achieve this level of borrowing and my client was delighted.

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