Trinity's brokers helping fund managers to secure £1 million+ mortgages

by Aaron Strutt

Jan 06 2022

Trinity Financial brokers consistently work with finance professionals like fund managers to secure £1 million+ mortgages.  

Our brokers understand there are complexities in the breakdown of a fund manager's income and that many high street mortgage struggle to understand them.  

Suppose a fund manager is relatively new to a firm or is in the early stages of launching, some lenders may only consider about half of a performance or discretionary-based bonus or profit share when assessing affordability. Some will also cap the bonus figure to a maximum multiple of salary.  

Trinity Financial has access to private banks that consider additional income over and above basic salary, with a minimum track record of two or three years. Our contacts work with their credit teams to look at their long-term career trajectory and previous track record. 

What about bonus income?  

Many of our fund manager clients receive bonuses subject to deferral, so the percentage of compensation that's deferred, the period of deferral, payment dates and asset class all need to be considered.   

As well as considering deferred income, we work to assess our client's balance sheet and, for high net worth clients, their ability to draw on assets to support the ongoing servicing of a mortgage.   

Suppose a client is expecting the vesting of a deferred bonus. In that case, specific lenders can assess the risk profile of any underlying fund or stock where it's held and tailor a lending solution and future repayment schedule accordingly. 

Aaron Strutt, product director at Trinity Financial, says: "The question for many high net worth borrowers is whether they need to use a high street lender or private bank to secure a mortgage.

"If you want the lowest deposit mortgage, you may require a private bank, but if you have a larger deposit and want the cheapest rates, the high street lenders are probably the best bet."

Use a lender that provides income stretch mortgages  

Trinity Financial has access to a selection of lenders offering income stretch mortgages of 5.5 times salary to higher earners.

When we approach these banks and building societies on your behalf, they use your basic salary and previous bonuses to determine how much you can borrow. This is often enough to secure a large enough mortgage.

The rates are great, and you will not need to provide as much documentation about future income or projected payments. 

Earn over £250,00 and want interest-only?

One large bank has taken the unusual step of setting a sizeable minimum income requirement of more than £250,000 to qualify for 75% on interest-only. Under the new rules, if the mortgage is on a part-interest and part capital repayment basis, 50% can be on interest-only and up to 35% on capital repayment. But, for those earning more than £250,000, 75% of the mortgage can be on interest-only plus 10% on capital repayment.  

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation