UK mortgage provider to capitalize on City bonuses

11 October 2006

UK-based mortgage provider Woolwich is to target bankers, brokers and other financial services professionals working in the City, by offering mortgages to those expecting big bonuses at the end of the year.

According to reports, the mortgage provider is attempting to take advantage of the vast amounts now paid in bonuses every year to London bankers by letting them buy a mortgage now, but only pay up when their substantial bonus comes through later on.

"Most people expecting a large bonus in January or February will already have a good idea if they are going to get one," explained Andy Gray, head of mortgages at Woolwich.

"The problem is it doesn't get paid until the New Year and if they want to buy a property now they might be restricted by what they can borrow and by the choice of mortgage type. If they wait for the bonus the property may have gone."

The buy-now-pay-later mortgage appears to be restricted to the big City players, however, with the minimum loan set at £500,000.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development