Case study: An £8m mortgage combining a purchase, refinance and capital raise

The client

A senior professional at an international firm wanted to purchase a five-bedroom family home in North London.

They needed to refinance the mortgage on an existing residence, fund the £5.5m purchase and cover the associated transaction costs. The client also wanted to move quickly, with an offer on the new property already accepted subject to an accelerated exchange and completion.

The challenge

The client required total borrowing of £8m. The transaction involved two properties with a combined value of £10m - the client’s existing home, valued at approximately £4.5m, and the new property, valued at £5.5m. The case also involved an expected SDLT rebate and a longer-term plan to downsize. 

The client’s income was primarily derived from partnership drawings, rather than a straightforward salaried income. This required a more considered affordability assessment, alongside a review of their projected earnings, assets and wider financial position.

Our solution

Investec provided an £8m mortgage secured against both properties at 85% LTV, with a plan to reduce to 70% over time. The facility was split into four tranches to reflect the client’s expected cash flows and repayment strategy, which enabled them to complete the purchase on time. 

By taking a holistic view of the client’s income, assets and future plans, Investec structured a solution that combined a purchase, refinance and capital raise within one facility.

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. Some details may have been changed for client confidentiality.