The concept allows clients to make smaller monthly mortgage payments in line with their basic salaries and to make up the difference with one larger interest payment when their bonus is received, thereby matching the pattern of their mortgage payments to the pattern of their earnings.
Available to individuals with sustainable earnings in excess of £300,000, the product applies to purchases of at least a quarter of a million.
Even though financial markets have been rather chaotic over the last six months, Investec still believes that city professionals could receive bonuses of over £1 million in 2008.
“Our research shows that there are over 104,000 people in the UK with an annual income of at least £200,000 - if they can provide strong evidence of the type of bonuses they can expect, we are prepared to develop a loan for them that takes this into account," said Wayne Preston of Investec.
“The key to success in the high income and high net worth mortgage market is strong risk management, and flexibility around meeting the needs of the client.”
Taking into account the track record of the client, Investec aims to offer them a long-term mortgage which mixes the discipline of making monthly payments coupled with the flexibility of the annual payment at bonus time.
Investec offers custom-built mortgages which incorporate elements such as multi-currency capabilities or gearing against multiple assets, such as investment holdings or offshore deposits.
