| Loan amount | £2,200,000 |
| Purchase price | £3,050,000 |
| Loan-to-value | 72% |
| Property type | Mews house |
| Location | Mayfair, London (W1) |
| Borrower | Goldman Sachs vice president |
| Term | 25 years interest-only |
| Rate | 5-year fixed |
| Lender type | Private bank (PWM relationship) |
| Income | Base + bonus + RSU + PWM assets |
The Story
Securing a mortgage as an investment banker with foreign income denominated in currencies such as US dollars, comes with its own set of challenges. Fox Davidson specialises in navigating the complexities of mortgage finance, catering to the unique financial profiles of individuals, including those working at esteemed institutions like Goldman Sachs. In this article, we will explore how mortgage lenders can effectively incorporate foreign income, considering the nuances of annual bonus payments, and address the specific considerations for Goldman Sachs employees.
The Challenge
Foreign Income Considerations
Goldman Sachs employees often receive income in a foreign currency. At Fox Davidson, we acknowledge the global nature of financial careers and collaborate with lenders who appreciate the need to consider income beyond traditional pound sterling. Using current exchange rates, mortgage lenders can smoothly convert foreign income, such as US dollars into sterling, providing a holistic perspective on the applicant’s financial position.
Documenting Foreign Income
For investment bankers, receiving bonus payments in foreign income necessitates meticulous documentation. Fox Davidson advises clients, including Goldman Sachs employees, to maintain detailed records comprising pay slips, compensation statements and relevant employment contracts. This full documentation not only supports the mortgage application but also highlights the stability and reliability of the applicant’s income. Lenders may particularly value a consistent income history when considering applications.
The Solution
Fox Davidson’s Approach to Annual Bonus Payments
Understanding the unique compensation structures of financial institutions like Goldman Sachs is crucial when evaluating mortgage affordability. Fox Davidson collaborates closely with lenders to emphasise the consistency and predictability of bonus payments, aiming to position our clients, including Goldman Sachs employees, favourably during the mortgage affordability assessment. We recognise the significance of bonus income in the overall compensation package, tailoring our approach to suit the distinctive needs of Investment Bankers.
Currency Stability and Risk Mitigation
Given the global nature of finance, mortgage lenders, including those working with Fox Davidson, may consider the stability of foreign income sources and currencies. Demonstrating a consistent income stream in a relatively stable currency such as US dollars, can enhance the mortgage affordability profile of applicants, including those associated with esteemed financial institutions like Goldman Sachs.
Expert Guidance for Smooth Navigation
Navigating the complexities of mortgage affordability with foreign income, especially for Goldman Sachs employees, requires specialised expertise. Fox Davidson excels in providing personalised guidance, ensuring a deep understanding of the unique financial situations of individuals. Our multi-level approach, offering access to high street lenders, specialist lenders, and private banks, allows us to explore a diverse array of options, catering to the varied needs and preferences of our clients, including those from Goldman Sachs.
Summary.
For investment bankers with foreign income, especially those at firms such as Goldman Sachs, securing a mortgage demands a nuanced approach. Fox Davidson recognizes the specific challenges associated with financial careers and provides specialist solutions to navigate them successfully. By addressing the considerations related to foreign income, including the treatment of annual bonus payments and currency risk, we ensure that our clients, including Goldman Sachs employees, can confidently pursue homeownership. Fox Davidson stands as a trusted partner, committed to unlocking opportunities and turning homeownership aspirations into reality for individuals with diverse and dynamic financial portfolios.
To discuss mortgages for investment bankers with one of our advisors please do get in touch.
Frequently asked questions
How are professionals assessed for a mortgage?
Professional schemes typically allow income multiples of 5x to 6x assessed income against the standard 4.5x for the high street. Eligibility usually requires a recognised qualification (RIBA, ARB, GMC, GDC, RCVS, ACA, ACCA, ICAEW, BCS, etc.).
What deposit do professionals need for a mortgage?
Most professional mortgage schemes accept 10 percent deposit, with several extending to 95 percent LTV (5 percent deposit) on residential purchases up to £750,000. A small number of professional lenders consider 100 percent LTV for established chartered professionals with strong income.
Are there mortgage rates specifically for professionals?
Professional mortgage schemes often price 10 to 30 basis points below the lender standard equivalent product, reflecting the lower historical default rates among professional borrowers. The differential is most material on five-year fixes at higher LTV.
How long does a professional mortgage application take?
A complete professional mortgage application typically completes in three to five weeks. Self-employed professional cases requiring net profit assessment add one to two weeks for accountant verification.
All rates and terms are indicative and subject to individual assessment, lender criteria and property valuation. Your home may be repossessed if you do not keep up repayments on a mortgage.
Professional mortgages with 5x-7x income multiples. Fox Davidson are specialist HNW brokers.