Bram Vis answers your mortgage questions
I earn a basic salary of £75,000 per year, but also get a bonus every year of around £125,000, last year was £135,000 – how much can I borrow? What sort of property can I look at? Can it be £1,000,000?
It all depends on how long you have worked for your employer, how many years you have received a bonus, and how likely it is that you will receive the bonus in the future. So, any amount that you can borrow will be divided into parts.
The salary element will be treated as 100%. The Bonus element will be looked at depending on how long, the amount, the regular amounts and so on - it comes down to the relationship with the lender.
Salary is a guaranteed £75,000 x 4.5 = £337,500
- Bonus at 50% = £ 67,500 x4.5 = £303,750
- Bonus at 60% = £ 81,000 x4.5 = £364,500
- Bonus at 70% = £ 94,500 x4.5 = £425,250
- Bonus at 80% = £108,000 x4.5 = £486,000
The amount that you can borrow from an HNW lender starts at £641,250 and then as much as typically £823,500. Add to that the deposit that has been accumulated in the existing property over the years – and you can see how a £1,000,000 property makes sense.
Please don't hesitate to call me directly on 020 7504 1090 or 01983 642 643 if you would like to talk, this or a similar scenario, through with me.
The information contained in this answer is for illustration purposes only and does not contain all the details required and should not be used as a personal recommendation without them. Do contact Bram if you would like an entirely free consultation to talk through your requirements, exact circumstances and best mortgage options.