- Client: UK-resident senior executive purchasing a second home in France
- Challenge: Securing high-leverage finance where a significant proportion of the client's remuneration was derived from bonus and equity-based income
- Loan Amount: Circa €1.26 million mortgage, representing approximately 90% of the purchase price
A UK-resident senior executive approached Enness Global seeking finance for the purchase of a second home on the French coast. While the client had a strong overall financial profile, the structure of their remuneration created additional complexity when approaching the French mortgage market.
A significant proportion of the client's earnings was derived from annual bonus payments and equity-based compensation rather than base salary alone. This can create challenges with conventional mortgage underwriting, particularly for non-resident borrowers, as individual lenders may apply different criteria when assessing variable or equity-based remuneration.
The client also held an established investment portfolio, which provided an opportunity to consider a broader private banking solution rather than relying solely on traditional income-based affordability assessment.
Enness approached a private banking lender experienced in working with international clients and complex remuneration structures. The client's wider financial position, including their bonus history, equity-based compensation and investment assets, could therefore be considered as part of the overall lending assessment.
To support the required level of leverage, the proposed structure incorporated a pledge over part of the client's existing investment portfolio as additional security. This provided further comfort to the lender while allowing the client to retain the underlying investment portfolio rather than significantly increasing the cash contribution towards the property purchase.
A circa €1.26 million facility was subsequently arranged, representing approximately 90% of the property purchase price, over a 20-year term. The mortgage was structured on a fixed-rate basis, subject to the lender's individual terms and requirements.
The transaction demonstrates how private banking and additional asset-backed security can provide alternative options for international property buyers whose income does not fit conventional mortgage underwriting models. Rather than considering salary in isolation, the appropriate lender was able to assess the client's broader financial position and structure the facility accordingly.
For high-net-worth borrowers with bonus-weighted, equity-based or otherwise complex remuneration, lender selection and the way the overall financial profile is presented can be fundamental to achieving an appropriate financing solution.
Disclaimer
This case study is provided for illustrative and informational purposes only and does not constitute financial, investment, tax or legal advice. Lending is subject to individual circumstances, lender criteria, valuation, underwriting and approval. The availability of high loan-to-value financing and portfolio-backed structures will depend on the borrower's circumstances and the requirements of the individual lender.
Where investment assets are pledged as security, their value may rise or fall. A fall in the value of pledged assets may result in additional security or capital being required and could ultimately result in assets being sold. Enness does not provide investment advice.
Enness Global is a credit broker, not a lender. Certain international mortgage and lending activities may fall outside the scope of UK regulation.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
