Low deposit options based on 100% bonuses for Hedge Fund employees with no basic salary income caps
Most UK Mortgage Lenders are generally nervous where the applicants are reliant on variable income such as bonuses received by Hedge Fund employees. They will certainly seek a track record.
A common request would be for payslips to evidence the bonus payments:
- Payslips for the last 2 years if paid annually
- Payslips for the last 3 quarters if paid quarterly
- Payslips for 3 to 6 months if paid monthly
Some Mortgage Lenders will average the bonuses on the payslips and others might take the lowest or latest figures.
Importantly the Mortgage Lender might factor in a safety net, the most common way would be to apply a certain percentage to bonus figure, say 50% as this protects them from fluctuations. Another common restriction is to cap the variable income at your basic pay level. Another issue is some lenders will cap your bonus amounts to your basic income which is not ideal as it can have a dramatic effect on the lender’s mortgage affordability calculations.
Below is a list of how we may be able to help.
- Up to 5.5 times income for some applications with high earnings
- 100% of bonuses taken into account
- Access to a Mortgage Lender that will lend up to £3m with just a 10% deposit.
- Experience with dealing with complex income and expenditure profiles
- Foreign currency incomes e.g Bonus payments can be considered
At Niche Advice we have access to Mortgage Lenders that have helped Hedge Fund employees in the past who not only are accustomed to bonuses they can be very large too. The Mortgage Lenders include those who work off the latest figure and use up to 100% without a cap. To find out if we can help you unlock greater mortgage borrowing potential please complete our Contact Form on this website or call T: 020 7993 2044.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.