A South African national's UK property investment journey
Our client’s wishes
Mr D is a South African national who relocated to South Africa about a decade ago for work opportunities. As an existing Nedbank South Africa client, he had his sights set on purchasing an investment property in the UK – attracted by the competitive rental yields, stable property values, and stronger growth potential compared to what he was seeing in the South African investment property landscape.
Our clients' situation
Mr D had found a two-bedroom flat in South West London – an area highly sought after by investors due to its excellent commuter connections to Central London. With his offer of £750,000 accepted, he needed £525,000 (70% loan-to-value) to complete the purchase. Time was of the essence for this transaction.
Interestingly, Mr D wanted his mortgage structured as Capital and Interest repayment (C&I), rather than the interest-only option most investors prefer. This meant his monthly mortgage payments would exceed the expected rental income – a challenge we were able to help him overcome.
After conducting a comprehensive income and affordability analysis, we found a solution. By factoring in a percentage of Mr D’s bonus income, which had been consistent for several years, we were able to create a mortgage structure that perfectly matched his requirements.
We crafted a £525,000 mortgage with a 24-year term, aligning perfectly with Mr D's planned retirement at age 70. This gave him peace of mind knowing his mortgage would be fully repaid when the term ended.
Our clients' outcome
We crafted a £525,000 mortgage with a 24-year term, aligning perfectly with Mr D’s planned retirement at age 70. This gave him peace of mind knowing his mortgage would be fully repaid when the term ended.
For flexibility, we arranged an initial 2-year floating variable rate tracker margin over the Bank of England Base Rate. This smart feature allowed Mr D to make overpayments or reductions to his mortgage without facing any early repayment charges during this period.
What truly pleased Mr D was the speed and efficiency of the entire process. We completed the purchase swiftly, meeting all agreed timescales – turning what could have been a stressful international property transaction into a smooth and satisfying experience for him.
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Any examples of investments and structures used are for illustrative purposes only. This case study does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.
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