While uncertainty remains over property market activity, some agents have predicted an uplift this season. Buyers who want to move home or purchase an investment property in the coming months will continue to benefit from being in a strong financial position.
Investec has recently supported a number of clients who wanted to seize an opportunity and were provided with a mortgage at speed. Here is one example of how we helped a legal professional who had been declined a mortgage by another lender at short notice.
Day 1: The referral from a friend:
In summer 2022, a client was referred to Investec with a dilemma. While waiting to exchange on her dream home in The Cotswolds, her mortgage offer was rescinded by another lender, putting the purchase in jeopardy.
“The client was an equity Partner at a law firm which generated part of its turnover in the US. The lender wouldn’t consider this income, which meant they would only provide a mortgage once she had sold her existing property which was in a chain,” explains Private Banker Emily Bernstein. “This delay meant the client would have lost out on her new home as she had four weeks to complete on the property.”
Day 2: The telephone call:
Investec specialises in working with professionals in different sectors who have a complex income structure. Private Banker Chris Duck worked alongside Emily to find a bespoke mortgage solution at speed. They understood that the client received her income in the form of a monthly draw and annual profit distribution, which could be taken into account when assessing affordability. “We look at circumstances holistically and work with many clients in different sectors who need to leverage irregular incomes including bonuses or foreign currency for example,” says Chris.
We understand that speed and efficiency help our clients to seize opportunities, particularly in the property market.
Day 5: Appointment with Investec mortgage adviser:
The advantage of working with a lender that can tailor a mortgage is that it can often be structured to suit the individual. The client required a high LTV mortgage as she had a considerable amount of capital tied up in an existing property. Within two days, Chris had drafted a mortgage proposal which included an interest-only element for two years, followed by capital and interest repayments for 17 years, to support cash flow.
Day 10: Client receives agreement in principle and mortgage illustration and agrees terms
Day 12: Specialist property valuation instructed:
As the property being purchased was located in The Cotswolds, the team prioritised a specialist valuation. This took place within 48 hours. “The rural location of the property and the fact it had an unusual style, meant that it needed a specialist assessment. Nevertheless, the report was returned within three working days, so we could confirm our appetite to lend and the client’s comfort with the estimate,” says Chris.
The [valuation] was returned within three working days, so we could confirm our appetite to lend and the client’s comfort with the estimate.
Day 15/16: Mortgage offer prepared
Day 17: Mortgage offer signed and documents issued to solicitor under dual representation:
The same solicitor represented Investec and the client in a process known as dual representation and this reduced the flow of information needed, which made the transaction efficient. Within one to two days, the solicitor returned the necessary documents and the certificate of title for the client’s new home.
Day 19: Mortgage drawn:
The mortgage was drawn within an estimated four weeks. The client was delighted, as were the private bankers who supported the deal.
“We understand that speed and efficiency help our clients to seize opportunities, particularly in the property market,” says Chris Duck. “It’s always reassuring to see how the team across the bank understands the urgency and pulls together.”
Emily agrees: “While circumstances vary, our integrated credit team, mortgage advisers and foreign exchange dealers help us provide a joined-up service and find the right solution for our clients.”
Ready to discuss your mortgage options? Please get in touch to speak to an Investec Private Banker to discuss your lending needs.
Important information:
Please note, the timeline described is based on estimated working days and for illustrative purposes only. No reliance can be placed on its content and Investec Bank plc does not accept any liability or responsibility directly or indirectly for any losses as a consequence of consuming this media. 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.
