Enness was approached by an established banking professional seeking a large mortgage to purchase a family home in the countryside around London. The client had a strong base salary, but a significant proportion of total remuneration came from annual bonuses, vested shares and a car allowance.
The client had previously owned a buy-to-let property, which had been sold to provide the deposit for the new purchase. They were looking to maximise the borrowing available and required a loan-to-value of approximately 80%.
The main challenge was affordability. Standard lending assessments may place limits on how much variable remuneration can be included, meaning the client’s overall compensation was not necessarily reflected in the amount they could borrow. At the required level of gearing, a broader assessment of their remuneration package was needed.
OUR SOLUTION
Enness reviewed the different components of the client’s income and identified a lender willing to take a more flexible approach. The assessment incorporated a proportion of the vested shares alongside part of the cash bonus and the car allowance, subject to the lender’s criteria.
This approach allowed the lender to take a broader view of the client’s remuneration and affordability, supporting the required 80% LTV structure. A five-year fixed-rate mortgage was also arranged, providing greater certainty around the client’s monthly payments during the initial term.
The resulting structure enabled the client to proceed with the purchase while using a larger proportion of their overall remuneration package for affordability purposes. The case demonstrates how specialist mortgage structuring can help borrowers with significant variable or non-salary remuneration where standard affordability assessments may not fully reflect their financial position.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
