Scenario:
Our client was an investment banker who was paid a salary and an annual cash bonus. He is also awarded additional guaranteed annual bonuses which are paid over the following 3 years.
Challenges:
Whilst he had a track record of receiving standard annual bonuses, he had only received one bonus under the deferred bonus scheme. Normally, lenders require 2 years bonus history before being able to use that income. To borrow the loan required, we needed a lender who could factor in the last 2 years cash bonuses plus the one guaranteed bonus received so far.
Solution:
As a large loan specialist, Magni Finance are accustomed to clients receiving vested bonuses in the form of cash or stocks/shares. Therefore, we were quickly able to find the most competitive lender available based on the complex nature of his income.
Key features:
Property value: £2.2 million
Loan amount: £1.5 million
LTV: 70%
Repayment type: Part interest only, part capital repayment
Product type: 5 year fixed
Interest rate: 1.19%