27 May 2021

Case study: high LTV mortgage for Private Equity Partner's countryside home

A Private Equity partner wanted to secure a mortgage with high LTV for a substantial countryside home with flexible repayment terms that reflected his income structure.

The client:

We recently worked with a Private Equity partner who relocated to the UK in 2018 with his family. He had a complex income structure consisting of a salary, profit distributions and carry with much of his remuneration paid overseas in US Dollars. The client also held a large amount of invested assets and holdings in private equity, mostly within the US.

 

The challenge: 

The client wanted to buy a countryside property in Oxfordshire and needed a mortgage that allowed him to retain his investment strategy while making flexible repayments. 

 

The property was unusual as it was set on a large estate with outbuildings. The valuation was approximately £7m. 

 

The client had been offered an interest-only mortgage at 75% loan-to-vale (LTV) with his existing bank, but the repayment terms required amortization to 65% over time. He was looking to maintain a high residual mortgage balance for the duration of the term with the ability to self-manage his repayments in line with his income pattern. 

 

The solution:

Investec is able to assess each case on its own merits. As our team is experienced in working with private equity professionals and foreign currency income, we were able to provide a 75% interest-only mortgage for a 10-year term with no mandatory overpayments. We considered the client’s wealth holistically and worked quickly with our integrated credit team to help the client and his family secure their new home.  

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