How to borrow against an existing property to buy a new home
When you’ve found a home you love, speed matters. Investec recently helped a management consultant and his wife to raise capital against their existing buy-to-let property, so they could secure a four-bedroom house in London, without waiting to sell.
At Investec we have a long track record of enabling individuals like you to buy a home or investment property with tailored mortgages and borrowing solutions. Our understanding of complex income streams, including bonuses and foreign currency, means we can use a holistic assessment of affordability to provide leverage. In some cases, we may be able to provide a higher loan-to-value (LTV) than you think.
You can find out more about our recent case here:
The client
A professional couple – who worked in management consulting and real estate – needed financial support to help them secure a highly-desirable four-bedroom property in London.
The challenge
In the competitive London market, the couple knew they needed to move quickly. They already owned an existing buy-to-let property, and wanted to put their equity to work in order to speed up the buying process.
The clients were also aware that they were facing a potential challenge, as one of them had only recently begun his new role at a management consulting firm. This meant they needed to work with a bank who could give an appropriate view of affordability.
In the competitive London market, the couple knew they needed to move quickly. They already owned an existing buy-to-let property, and wanted to put their equity to work in order to speed up the buying process.
The solution
To enable the purchase, Investec provided a £3.1m mortgage against their new main residence at 85% LTV, and a loan against the buy-to-let property at 76% LTV. This helped the client to move quickly and secure their dream home whilst retaining assets. The facilities themselves were set up as interest-only with annual capital reductions to reduce the LTV over an agreed period of time.
The clients were extremely appreciative of this bespoke solution, which reflects the client-centred approach of Investec.
If you’re looking for a mortgage which reflects your income in an efficient timeframe, our dedicated private banking team could help you. We build long-term relationships with our clients and provide transactional banking and lending support, as well as connecting our clients with foreign exchange and wealth management specialists.
Management consultant? Please get in touch to discuss how we could tailor mortgages for you.
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.
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