CASE STUDY
This case study explores a recent successful property acquisition in London for a client with an unconventional income structure, highlighting the growing acceptance of cryptocurrency as a financial instrument for securing mortgages.
Client Background and Requirements
A Swiss-resident client working in the blockchain sector sought to purchase a London residence valued at £1.85 million. Their goal was to secure an 80% LTV mortgage based on their income, which included a salary in Swiss Francs (CHF), an annual performance bonus, and a significant monthly cryptocurrency token bonus. With a large holding of crypto assets, the monthly token bonuses formed a significant portion of the client’s income package and overall wealth.
The Challenges
Despite a substantial income, securing a mortgage proved challenging due to several factors. Firstly, the client’s salary was paid in CHF, which impacted affordability when converted into GBP. Additionally, their bonus history fell short of the lender’s minimum two-year requirement. The crypto element of their income presented another hurdle, as it is an unregulated currency and is often perceived as volatile and unreliable. Lastly, the client’s monthly expenditure was significantly high. This, combined with the complexities of their income streams, made achieving the desired £1.6 million loan challenging.
Overcoming Obstacles Through Strategic Presentation
This was not a typical case. While the client’s income streams demonstrated adequate affordability, they didn’t meet the lender’s standard criteria. To overcome this, we presented a meticulously documented overview of the client’s overall financial profile, including detailed breakdowns of their salary, bonuses, and cryptocurrency holdings. We reframed the narrative around cryptocurrency income, highlighting its potential as an asset for offsetting expenses and demonstrating its stability through holdings in Tether (USDT), a stablecoin pegged to the US dollar.
Successful Result
As a result of our strategic presentation, our expert adviser, Jamie Roberts, was able to secure the client a competitive 2-year fixed-rate mortgage for £1.6 million. This allowed them to acquire their dream property in London valued at £1.85 million, with an 86.49% LTV.
This case exemplifies Henry Dannell’s ability to think outside the box and craft tailored solutions for clients with unconventional income structures seeking high-value mortgages. By strategically presenting the client’s financial profile and employing innovative strategies, we achieved a successful outcome that exceeded the client’s expectations.
Need Support Securing a Mortgage with a Complex Income Structure?
Considering using cryptocurrency or other unconventional income sources to secure a mortgage? Our experienced team is here to help. Contact our mortgage specialists today to discuss your options.
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
