£1.8 million mortgage arranged for private equity client with USD bonus income and minor credit issue

£1.8 million mortgage arranged for private equity client with bonus income and minor credit issue

Trinity Financial helped two home movers secure a £1.8 million mortgage to purchase a £2.3 million property in London after affordability issues and missed utility bill payments caused problems with several high street lenders.

The clients

One applicant worked as a private equity consultant, while the other was a company director.

They were moving home and had a 20% deposit available for their £2.3 million purchase.

The clients wanted to move quickly and needed an Agreement in Principle as soon as possible, with the aim of completing their purchase within two months.

The challenge

The clients had strong overall incomes, but the mortgage application was more complicated than it initially appeared.

Affordability was tight for the £1.8 million loan required and there were some minor missed utility payments showing on the credit file.

Several mainstream lenders declined the case at Agreement in Principle stage.

Bonus income also created an additional challenge. One applicant had previously been based in America, meaning their earlier bonus payments had been received in US dollars. They only had one recent annual bonus paid in sterling that could be used for the application.

For our other client, the latest annual bonus was higher than the previous year, so finding a lender prepared to use the most recent payment was important for maximising affordability.

Finding a lender prepared to take an overall view

Trinity Financial's brokers approached a large building society offering enhanced loan-to-income options. The lender was prepared to take an overall view of the clients' circumstances, including the minor credit blips and their bonus income.

Importantly, the lender was able to use the latest year's bonus income rather than relying on a longer average that could have reduced the clients' borrowing capacity. This helped us achieve the £1.8 million mortgage required.

Part interest-only mortgage helped reduce monthly payments

The mortgage was arranged on a combination of interest-only and capital repayment.

Using part interest-only helped keep the clients' contractual monthly mortgage payments lower, which was particularly important given the size of the loan.

The clients also wanted the flexibility to reduce their mortgage balance when they received their annual bonuses. The mortgage allowed them to make annual overpayments of up to 10% within the lender's permitted limits.

Part of the mortgage was arranged on a fixed rate of around 4.75% until the end of 2028, after which the lender's applicable standard variable rate would apply.

Mortgage offer issued in just over one week

Despite the affordability challenges, bonus income and minor adverse credit history, Trinity Financial secured the formal mortgage offer in just over one week.

The clients originally found Trinity Financial through our website.

Need a large mortgage with bonus income or minor credit issues?

High earners do not always fit neatly within standard mortgage affordability calculations.

This can be particularly true for private equity professionals, company directors and clients receiving substantial annual bonuses, overseas income or variable remuneration.

Trinity Financial's brokers regularly arrange £1 million, £1.5 million and £2 million-plus mortgages and can approach lenders offering enhanced income multiples, interest-only options and more flexible underwriting.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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