£890,000 Joint Borrower Sole Proprietor mortgage using bonus income
Trinity Financial recently arranged a Joint Borrower Sole Proprietor mortgage for an unmarried couple.
They had found a house they wanted to buy at just over £1 million and required an £890,000 mortgage.
Both applicants worked in the banking industry and received bonus income. They planned to borrow over five-times their joint salary using their bonus income.
As one of the applicants had a buy-to-let property, they wanted to use the Joint Borrower Sole Proprietor Mortgage scheme (JBSP).
Solution
Our broker approached a bank providing market leading rates and up to 5.5 times salary mortgages to those with a combined income of at least £100,000.
The bank provided high loan-to-value rates for larger mortgage loans and did not charge a premium for JBSP mortgage applications. It also accepted up to 100% of bonus payments and provided an impressively low two-year fix.
The mortgage offer was produced in three weeks but it was slower than normal as the client's required independent legal advice. This was part of the JBSP requirements.
Case details
Property type: Detached house
Value: £1,050,000
Mortgage: £890,000
Rate: 1.68% until 30 April 2021
Reversion rate: The bank’s standard variable rate, currently 4.24%.
The overall cost for comparison is 3.94% APRC representative.
Lender’s arrangement fee: £1,999
Mortgage term: 29-years
Repayment type: Full capital repayment
Loan-to-value: 90%
Early repayment charge: 2% until 30/4/21
Overpayments: 10% per annum allowed
Representative example: A mortgage of £892,500 payable over 29 years, initially on a 1.68% fixed rate until 30 April 2021 and then on a variable rate of 4.24% for the remaining 29 years, would require 23 monthly repayments of £3,248.96 followed by 325 monthly repayments of £4,391.40. The total amount repayable would be £1,502,172 made up of the loan amount plus interest and no arrangement fee. The overall cost for comparison is 3.94% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
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