I need to purchase a property within four weeks. Is a mortgage an option?

It is in situations requiring speed and efficiency that a relationship with a private banker can be most beneficial. The personalised support and understanding of your complex financial arrangements could save you time: at Investec we have previously provided a mortgage within 12 working days.

Many fund management professionals we support use a mortgage as it enables them to avoid potential tax liabilities incurred from selling down an investment portfolio to release funds. It can also enable them to maintain more liquidity for other commitments, including the revolving credit demands of capital calls. What is right for you will depend upon your individual circumstances.

If you have an existing mortgage, you may be looking for a high loan-to-value facility to raise capital, or to buy your second home. Investec will look at your earnings holistically – including foreign currency and performance-related income such as bonuses or carry – to determine a loan amount which is appropriate and affordable.

We recently helped a fund manager who wanted to purchase a property in South West London using a relatively low deposit. While much of his income was deferred, we were able to understand the fund lifecycle and his previous earnings to provide an 90% LTV mortgage over a 12-year term to allow the fund to mature and divest.

As private bankers we have a range of mortgage structuring options available to us. Where there is a credit repayment strategy, these can include interest-only repayment periods to lower your monthly outgoings, with the potential to make capital reductions around your liquidity events.

We can also explore cross-collateralisation, which means one mortgage is secured against both your new and existing property. The advantage is that you may achieve a lower LTV on aggregate because there may be equity in your current property, and this may reduce your overall interest rate. If you were looking to sell your existing home at a later date and use the proceeds, this can also inform a lending decision, as you may be able to borrow more.

If you are looking to rent out the property, we can also tailor a buy-to-let facility using the same personalised approach. It’s important to note that you can also purchase the property within a Special Purpose Vehicle (SPV) such as a limited company. This could enable you to offset some of your costs, without incurring a change in your mortgage rate.

Of course, the interest applied to mortgages means a property will cost more than purchasing it in cash, so it’s important to weigh up the options carefully and seek independent financial and tax advice before making a decision. But in short, private bankers are here to help you seize opportunities in a way that works 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.