The client is the co-founder, CEO and majority shareholder of a UK-based privately owned shipping company. The majority of the client’s wealth was tied up in their private company and an offshore trust. The structure and value of the client’s remuneration had changed significantly over the past five years.
The client had a mortgage offer with another lender and had progressed with the legal due diligence, but was looking for a new lender who could meet a three-week completion deadline and offer a higher LTV.
It was not possible to get a new property valuation due to access restrictions from the vendor, thus Investec had to rely on having the existing valuation report re-addressed.
While the client had been receiving a salary and bonus income from their company, their remuneration had recently shifted to being predominantly from dividends. Investec had to undertake increased due diligence to be satisfied with the ability to draw income from the company in future.
Investec was able to provide a mortgage with increased leverage and meet the completion deadline. The mortgage was drawn 12 working days after the initial enquiry. The loan of £7.65m was provided at 75% LTV for a 10-year term on an interest only basis, with a one-off capital reduction after the first two years reducing the leverage down to 65% LTV.
Disclaimer: 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.
Case study
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