Investec fashions a tailored mortgage for top designer with diverse assets
Many high-net-worth individuals have unpredictable income profiles and diverse investment portfolios comprising a sophisticated mix of traditional and non-traditional assets. These complexities can create challenges for even the wealthiest people when they try to secure a home loan. Find out how we fashioned a supersize mortgage against the clock for a successful designer with bespoke needs.
Super-prime properties, which Knight Frank defines as homes worth more £10 million-plus, have enjoyed a resurgence over the last year. The total value of super-prime London transactions climbed to £707 million in the second quarter of 2018, a rise of 22% from the same period the previous year. Political and economic uncertainty curtailed sales following the EU Referendum, but there is now evidence pent-up demand is forming. Buyers often face competition from other interested parties when looking to purchase a home in the capital. As a result, high-net-worth individuals (HNWIs) must act fast if they don't want to miss out on a desirable property.
However, securing a mortgage for a multimillion-pound home is a complex undertaking, particularly for those with complicated earning profiles and a diverse portfolio of assets. Delivering a tailored solution to meet a niche borrower's unique financial situation in a timely manner therefore requires expert support and a deep understanding of the super-prime property market.
Securing a mortgage for multimillion-dollar homes is a complex undertaking, particularly for those with complicated earning profiles and a diverse portfolio of assets.
A successful designer needed a large mortgage for a multimillion-pound London property. Despite a high income, the borrower had an unconventional earnings profile, as well as an investment portfolio containing both traditional and atypical assets.
The designer needed a £10 million multi-part mortgage quickly because other buyers were interested in the property. However, the borrower's earnings were split between euros and pounds, and their asset mix included an existing unsold home and a multimillion-pound art collection.
Investec Private Bank understands that HNWIs have unique requirements when purchasing their dream homes.
In signature style, we were able to cotton together a £10 million mortgage for the designer, taking into account the time constraints and the borrower's specific combination of earnings and assets. The offer was split into parts, with an interest-only portion tailored to be repaid through the sale of the borrower's existing property. The remaining part would then be paid down over the course of the loan through annual capital reductions.
But Investec Private Bank doesn't just fashion loans for designers. We build mortgages for property developers, assemble home loans for manufacturers and constitute arrangements for Magic Circle lawyers. In fact, our mortgage intermediary team takes a holistic approach to every applicant's financial strengths, catering to a broad range of occupations, earnings profiles and asset allocations.