An experienced homeowner wanted to release equity from their primary residence to become a cash buyer for an investment property. We helped them secure a split mortgage facility that utilised their complex bonus income to raise capital for property investment at a highly competitive rate.
The Challenge
The client faced a few hurdles in securing the required borrowing:
- Complex Income Structure: The client received a basic salary supplemented by significant quarterly bonuses, which mainstream lenders often struggle to assess.
- Raising Capital: The client needed to remortgage to release equity in their current home without disrupting household cash flow.
- High LTV Requirement: The client wanted a high LTV mortgage to maximise the capital raised for future property negotiations.
The Strategy
To structure a deal that met the client’s needs, we leveraged our network of specialist lenders to find an institution capable of handling complex bonus income:
- Specialist Lender Alignment: We identified a lender whose underwriters accept significant bonus income in addition to a basic salary.
- Split Mortgage Structure: We secured a total borrowing facility of £945,000 at an 80% LTV. To balance affordability and cash flow, we structured the loan with 50% on an interest-only mortgage on a UK basis and the remaining 30% on a repayment basis.
Favourable Rate Strategy: We locked in a highly competitive five-year fixed rate, providing the client with payment security.
The Results
- Total Loan Amount: £945,000
- Loan-to-Value (LTV): 80%
- Capital Raised: £220,000
- Mortgage Structure: Split facility (50% interest-only / 30% repayment)
- Key Outcome: The client successfully released the necessary equity, allowing them to act as a cash buyer and gain strong negotiation power.
Why This Matters
For property investors, having liquid capital provides a significant advantage when negotiating below-market-value deals. By utilising a bonus income mortgage structure and a split interest-only and repayment facility, the client unlocked £220,000 in equity without increasing their monthly outgoings to unmanageable levels.
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Ready to raise capital for property investment? Book a consultation with our team today.