Case study: A first home for the next generation

The borrower

The client was a Partner at a leading consultancy firm who wanted to help fund the purchase of a first home for his son when he left university and started his first job.

The problem

The client’s son was looking to move to a two-bedroom flat in North West London with his fiancée. To purchase the property he required a high LTV mortgage with affordable repayments, which was difficult to secure from a mainstream lender in the current interest rate environment.

The client was required to leverage his own income to support repayments. As a Partner, he was remunerated by annual profit distributions. This added an element of variability to his income profile, which needed to be considered.

The solution

Investec can tailor mortgage solutions to clients’ needs and will generally look to name parents as co-borrowers. We provided an 85% LTV mortgage on a 24-year-term. Repayments were on an interest-only basis for the first three years, before the facility became fully amortising for the remaining term.

Important information

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 case study is a representative example based on the services we provide. Some details have been changed for confidentiality.