Case study: Managing complex income to support a high-value residential purchase

The borrower

A senior financial services professional working in a leadership role at a global insurance organisation had the opportunity to purchase the high-value property he was renting. To do so, he needed a mortgage within an efficient timeframe that reflected his complex income profile.

The challenge

The client required borrowing of around £6m, equating to a loan-to-value of approximately 60%.

Although he had strong long-term earnings visibility and significant net worth, the case involved several complexities. Income was received across multiple sources, including variable and deferred stock awards paid annually, with some income denominated in a foreign currency.

The transaction was also subject to a tight completion timeframe following the sale of the client’s previous main residence.  

The solution

Investec worked closely with the intermediary to design a solution.

The mortgage was structured on an interest-only basis over a 15-year term, with a repayment strategy that was based on future downsizing and substantial property equity.

Investec undertook a detailed assessment of the client’s complex income, applying appropriate haircuts to account for market volatility. Timing considerations were mitigated by the client’s post-completion liquidity, enabling the purchase to complete smoothly and on time.

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.