For many C-suite and private markets professionals, securing an appropriate mortgage is challenging. Traditional affordability models and repayment plans can struggle to reflect non-salaried income, even when earning potential is high.
At Investec, lending solutions are designed with a broad view of a client’s financial position, wealth trajectory and liquidity needs in mind. Here, private bankers Will Chipperfield and Channon Allen-Gulley discuss what mortgage options might be available.
1. Why do high-net-worth clients still choose to borrow for a home or investment property?
Channon: For many individuals, borrowing is often about maintaining flexibility and managing capital efficiently rather than necessity.
A mortgage can allow clients to acquire a property without needing to liquidate investments or disrupt long-term strategies. When working in private equity and hedge funds, where capital may already be allocated or expected to generate future returns, maintaining exposure to investments can be an important consideration.
Will: We often see a similar mindset among city professionals who work in sectors such as law or finance. Clients may prefer to preserve liquidity or keep capital available for future goals, including investing, business interests or school fees. A tailored mortgage can help preserve cashflow.
2. Why can high earners sometimes find it difficult to secure a mortgage?
Will: Many senior city professionals have incomes that are variable. If a significant proportion comes from bonuses, profit shares or foreign currency income, some lenders can take a conservative view of how much to lend.
We work with professionals across sectors including law, investment banking and consulting, where remuneration can be sophisticated and evolve over time. Rather than focusing solely on headline salary, we look at the broader picture, including earnings history, assets and investments.
Channon: We see something similar in private markets. Fund managers and private equity professionals may have periods where liquidity fluctuates because capital is tied up in investments, or income is linked to carried interest and fund performance.
Traditional lenders can find that difficult to assess. Our role is to understand how these businesses operate and how our clients are remunerated, so we can structure lending around their specific circumstances.
3. How do you evaluate more complex or irregular income?
Will: There’s no one-size-fits-all approach. We take time to understand how a client is paid and how their remuneration has developed over time.
For example, we may consider bonuses, partnership distributions, share income or foreign currency earnings alongside salary. In many cases, looking at a longer-term track record and future trajectory gives a more accurate picture of affordability than a particular year’s income.
4. How important is speed when it comes to property transactions?
Channon: It can be critical. In competitive property markets, clients often need certainty and responsiveness, particularly when timelines are compressed.
One advantage of relationship-led banking is that decisions can often be made more quickly because we already understand the client’s broader financial position and objectives. That can make a meaningful difference when opportunities arise.
5. What kinds of mortgage structures are available to clients with complex finances?
Channon: Flexibility is key. Some clients may benefit from structures secured against both their existing home and the new target property, or from facilities that provide revolving access to capital, while others may prefer repayment profiles aligned with expected liquidity events.
Will: For city professionals whose income may fluctuate year to year, interest-only tranches can provide reassurance and support broader financial planning.
6. What other ways can a private bank add value?
Will: Often, it’s having a banking relationship built around understanding their individual circumstances rather than applying a standard process. Clients can have an open conversation about their finances with someone who understands the realities of their profession and long-term ambitions.
Channon: I would agree. Many of our clients are dealing with increasingly complex financial lives, and they want a banking partner that can look at the bigger picture and fulfil multiple needs.
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 article is for general information purposes only. The opinions featured do not constitute financial or other advice. It is advisable to contact a professional advisor if you need financial advice. Minimum eligibility criteria and terms and conditions apply.
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