Case study: remortgaging without an income

While many work at the world’s largest investment banks and hedge funds, we also see those who strike out on their own. So how are we helping professionals in this situation to meet their lending needs?
 

The borrower

A former investment banker who has moved into investing into early-stage companies. The client’s NAV is over £10 million and is a number of years into building his portfolio, but is currently not receiving a salary. The earliest exits from his fund will fall a few years in the future.

The problem

The client is looking to remortgage their prime central London residence to fund their lifestyle over the next five years until they start exiting investments. The client was looking for a five-year, fixed-rate interest-only mortgage, to be fully repaid by the sale of their home.

The solution

Despite the client’s earnings relying on the future success of his fund, Investec was able to offer the mortage.

To achieve this, we took into account the client’s broader financial position, including their vesting stock and cash reserves. Using a High-Net-Worth Waiver, we were able to use the client’s intention to monetise assets to service the mortgage.

Finally, we agreed to hold the interest charged on the loan as a deposit for the mortgage term.

Building any new venture takes time, it takes patience and it’s certainly not for the faint of heart. Those who take the plunge should be able to use the assets they hold to help them make it a success. In this case, that’s exactly what we were able to offer.

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.