Case study: Helping navigate change with a £7.3m mortgage

The borrower

A senior business leader turned to Investec when he needed to buy a new home following a change in personal circumstances. The client was navigating the complexities of divorce while supporting four children.

The problem

In a challenging time, our client wanted to buy a five-bedroom semi-detached home in London that was ready to move into. He also wanted to retain an eight-bedroom second home situated in the West Country and raise further capital to maintain his liquidity.

While he had a significant cash balance, as well as a property portfolio, private equity investments and a personal pension (SIPP), his recent divorce introduced substantial financial commitments.

The client's income was robust and stable but included some complex elements such as stock and discretionary payments, which needed to be considered when devising a mortgage repayment strategy.

The solution

Investec conducted an in-depth analysis of the client's income and assets. We were able to utilise his carried interest payments as part of the affordability assessment.

To align with the client's desire to maintain their liquidity, we structured a single loan with a 65% loan-to-value (LTV) across both his new and existing property. With a credible strategy for repaying the capital at the end of the term, the 15-year loan was arranged on an interest-only basis for the entire duration, providing the client with the flexibility and cash flow preservation they needed.

The deal gave the client some comfort as they entered their next chapter with a desirable new home.

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.