Woolwich: Minimum £0.5m mortgage to absorb record bonuses

15 December 2006
Woolwich has launched a 'city mortgage' offering loans of a minimum of £500,000 for 'city workers' cashing in record bonuses for 2006.

As it emerges employees at bank Goldman Sachs will bag an average bonus of £319,000, the Woolwich product "allows customers to immediately offset their bonus", says Woolwich head of mortgages Andy Gray.

The 'tax efficient home' for the bonus charges only 8.9 per cent interest.

The mortgage even allows city workers looking forward to bumper bonuses to buy their desired property on trust before the bonus comes in, as analysts anticipate the property market will be flooded with high-end purchases in areas such as Kensington and Notting Hill.

A survey from Rightmove this week found the average price of a Kensington house was the highest in the country at £1,116,041.

The price may not deter Goldman Sachs employees, who receive a total payout 40 per cent higher than in 2005, in recognition of a year of record growth with mergers and acquisitions, propriety trading and prime brokerage.

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