A client was recently recommended to me by a previous client; they were looking to raise capital on an existing residential loan so that he and his wife could invest in their first buy to let investment property, and their current lenders were unwilling to finance to purchase.
The buy to let investment property in question was a house in West London worth £1.8million, and their existing loan amount was £700,000. My clients were hoping to raise as much as they could for the new purchase and required a loan of £500,000.
Due to my client’s role as an investment manager, his income was based on performance and made up largely of annual bonuses, presenting a challenge when proving affordability. At Enness, however, we work with a lot of clients who are in a similar position so are able to work around it and find a solution.
My client had only been in the position for a year and a half, meaning his bonus income was lower in the past couple of years than it would otherwise have been; he had agreed to a smaller bonus than he would have received had he not left his previous role. His new employer gave him a bonus after six months to compensate but, on paper, it was still comparatively low.
Thanks to our large network of lenders, I knew of a specialised lender with whom I have a great relationship. After I had presented my client’s case to the lender and cleared the details of his job security and income set up, the lender was willing to accept 100% of the bonus from his previous employment, and offer excellent terms.
Needless to say, my clients were ecstatic with the results and the couple look forward to purchasing their first investment property.