Case Study: Banker Bonus Mortgage - USD Bonus Used to Borrow 5.2× Income
DIRECTOR AND MORTGAGE ADVISER
Specialist broker for high-earning professionals and complex income cases.
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A banker bonus mortgage is a UK home loan assessed using a banker’s variable bonus—typically averaged over two years—with only part counted (often 50–60%) and, if paid in foreign currency such as USD, discounted by 20–25% for exchange-rate risk. Evidence of consistency is usually required.
Client Profile
Persona: Investment banking associate (London)
Income: £120k base + £80k–£140k annual bonus (paid in USD)
Target Property: £1.25m flat
Loan Required: 75% LTV (£937,500)
The Challenge
Foreign currency volatility: Lenders apply discounts to non-GBP income to manage exchange rate risk. For USD, typical haircuts we see are around 20–25% depending on lender.
Discretionary bonus: Many lenders cap how much bonus counts—often 50% of a two-year average for discretionary awards; some model around 60% where policy allows.
Higher borrowing need: Hitting the required £937,500 at 75% LTV meant stretching affordability. Some mainstream lenders do offer up to 5.5× income if thresholds and LTV caps are met.
Our Approach
Two-Year Bonus Average: We used a 24-month track record of cash bonuses to demonstrate sustainability, aligning with lenders that consider a two-year average and restrict discretionary elements.
Foreign Currency Haircut: We modelled affordability both at a 20% and 25% haircut on the USD bonus to match differing lender policies and mitigate exchange-rate swings.
Evidence Pack: Provided bonus award letters, payslips showing the USD bonus credit, and bank statements; cross-checked YTD figures to support consistency and recency.
Lender Selection: We targeted a high-street lender with appetite for complex remuneration and scope for stretched LTI where incomes meet set thresholds and LTV ≤85%.
Stress-Testing: We ran sensitivity checks for lower bonus years and weaker USD/GBP rates to ensure affordability still cleared lender buffers.
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The Outcome
Offer Achieved: £937,500 at 75% LTV on the £1.25m purchase.
Affordability Stretch: Equivalent to ~5.2× the lender-assessed income after applying the USD haircut and bonus scaling.
Future-Proofing: The structure leaves headroom against bonus variability and exchange rate shifts.
What Helped This Case Succeed
Clear Bonus Narrative: Two-year history with consistent awards and timing aligned to recent payslips.
Pragmatic Currency Treatment: Presenting parallel affordability cases at 20% and 25% haircut made it easy for underwriting to sign off.
Right Lender, Right Policy: Matching the profile to a lender comfortable with discretionary bonuses (often at 50% of a two-year average) and professional-style LTIs.
What Our Clients Say
Guidance For Bankers With Bonus Income
Document the track record: Keep two years of bonus evidence and ensure YTD aligns with payslips.
Expect a currency haircut if any part of your income is paid in USD/EUR/CHF/AED. Build a buffer.
Know the rules of thumb: Many lenders use 50% of a two-year average for discretionary bonuses; some model ~60% depending on policy.
Target the right LTI framework: Certain lenders can stretch to 5–5.5× where income and LTV criteria are met.
Why Kite Mortgages
We specialise in complex income for high-earning professionals. We’ll translate your compensation into lender language, pick the right policy fit, and package the evidence to maximise viable borrowing—without overpromising.
Request your fee free mortgage consultation today. No obligation, just sound advice.
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APPROVED BY THE OPENWORK PARTNERSHIP ON 24/09/2025