Case study: High LTV mortgage for entrepreneur with income from offshore trust
Investec provided an 80% LTV mortgage to an entrepreneur who had income from an international business that was held in trust. This required complex evaluation of the business, including management of currency and tax exposure.
The client
An international travel entrepreneur was looking to buy a new family home in the Home Counties for £4m, having relocated from abroad to the UK a few years ago.
The challenge
With his earning capacity challenged by macroeconomic events including the covid pandemic, the client was looking for a high LTV loan to purchase the property.
Like many of our entrepreneurial clients with global success, his company structure and how he derived an income was complex. The business was owned by an offshore trust and the client had multiple income streams including a salary and irregular dividends, paid in foreign currency.
Investec was required to work with the client’s accountant to understand the underlying health of the global company structure. We then evaluated the impact of tax obligations and market volatility on his remuneration, to accurately assess affordability.
The solution
We were able to provide an 80% LTV mortgage on a ten-year term. The loan was structured in two parts. A small amortising part, and the client’s intention to make overpayments, enabled us to provide a high LTV on day one.
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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.
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