- £700,000 mortgage to fund £900,000 property
- 60% of annual bonus used in affordability calculation
- 2.23% five-year fixed rate
Our clients asked for help to arrange £700,000 mortgage so they could purchase a house in Surrey.
One of the applicants received bonus income as part of his role as a fund manager, and his partner has recently returned to teaching after having a baby.
After approaching his bank for a mortgage, he was told it would not accept any of his bonus income even though it had not changed because of the pandemic.
Why was it difficult?
Many of the lenders have completely changed their affordability calculations, and some are not taking any variable income at all.
How did we help?
Trinity’s broker applied to a broker-only lender still accepting up to 60% of bonus income. The lender was happy with the variable income, especially as he had a two-year track record of the payments. The competitively priced fived year fixed rate mortgage offer was produced within four weeks.
What was the rate?
A 2.23% rate fixed until 28/02/2023, and after the fixed period it reverted to the banks 4.49% standard variable rate. The overall cost for comparison is 3% APRC. The arrangement fee was £995, and early repayment charges applied. The mortgage had a 35-year term.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation