Case study: 85% LTV for first-time buyer with bonus income

The borrower

A first-time buyer wanted to borrow £2m to purchase a luxury home in South West London. The client was a managing director with an international role whose income varied each year.

The challenge

The client worked for an investment management firm and a large proportion of her income varied according to the firm’s performance. She received bonuses and long-term share awards, which included some US dollar income.

In addition, much of her personal wealth was held in an investment portfolio and may have been subject to volatility.

This unpredictable financial profile needed to be considered when determining an appropriate loan amount.  

The solution

Investec was able to look at the client’s financial position overall and was comfortable with her selling down part of her investment portfolio to fund the deposit. We considered her bonus and salaried income and provided an 85% LTV loan on a 25-year term, which included an interest-only repayment period.

Important information:

Your property may be repossessed if you do not keep up repayments on your mortgage. Investec residential mortgages are only available for residential properties in England or Wales and are primarily available to UK residents and subject to eligibility. This is a case study based on the services we provide and may be hypothetical. Some details may also have been changed for client confidentiality.