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Case study: 90% LTV with discretionary USD bonus and stock awards

Investec is often able to provide high LTV mortgages to fund managers and other professionals with discretionary, deferred and foreign currency income.


The borrower

A married couple were looking to upsize their London family home after forging successful careers in fund management and education.

The challenge

The clients were looking for a high LTV mortgage to purchase the property for £3m.

Their combined income included a discretionary bonus split into cash and Restricted Stock Units (RSUs). The cash was paid in US dollars and the RSUs vested over a two-year period.

This meant there was a need to consider the impact of fund performance and foreign currency exposure on total earnings when calculating affordability. In addition, there was a need to understand applicable tax treatments for any withdrawals from the fund.

The solution

Investec was able to tailor a bespoke mortgage with a 90% LTV on day one. The mortgage was provided on an interest-only basis for 25-years, with the clients able to make capital reductions over time,in a way that reflected their irregular income pattern.

In this case, Investec accepted downsizing as a future repayment strategy for the loan.

 

Get in touch

If you're a mortgage broker and want to discuss how we can help your clients with their mortgage, contact us.

It all starts with a conversation

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Further information for mortgage brokers

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Mortgage broker hub

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Client application forms

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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. An arrangement fee and other costs apply to take out a mortgage with Investec Bank plc. Early Repayment Charges may apply to a mortgage.