Case study: 75% LTV for private equity partner
Investec understands the complex income structure of private equity professionals. We recently provided a mortgage to a partner whose salary, bonus and carried interest were denominated in euros. We continue to strive to support individuals with their mortgage needs in a changing economic and tax environment.
The borrower
An experienced private equity investor approached Investec when he wanted to purchase a four-bedroom family home in London.
The challenge
The client had multiple income streams, including a salary, bonus and carried interest denominated in euros.
The bonus was discretionary, and the level of carried interest varied. All remuneration was also subject to currency-market volatility. Using our holistic approach to affordability assessment, Investec was able to account for this variability and tailor a suitable loan.
While the client had recently joined the firm, our comfort with his career history and understanding of the business enabled us to quickly evaluate his financial position.
The solution
Investec was able to provide a 75% LTV mortgage on a two-year fixed-rate term. This meant our client and his partner were able to move swiftly into a beautiful new property.
With an increase in tax rates for carried interest, we are well placed to provide mortgages that look at overall income in order to give high-net-worth individuals appropriate buying power.
Want to discuss our mortgage and borrowing options? Please get in touch today.
Our Private Bankers are highly experienced with a history in complex lending and relationship management.
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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