Our clients were UK nationals residing in the UK and established self-employed business owners in their 60s. They maintained a high-value property portfolio consisting of their primary residence, a holiday home and a successful Buy-to-Let (BTL) investment. Historically, their debt facilities had been held with an exclusive Private Bank. However, due to recent shifts in the bank’s internal risk appetite and regulatory parameters, the clients no longer met the strict criteria required to retain debt with the institution.
Faced with a mandate to transition away from the Private Bank, the clients needed to borrow £1,500,000 over a fixed 12-month period. They planned to clear the private banking debt quickly, allowing them the necessary time to carry out some required work on their holiday home and execute an orderly sale of the property to clear the balance.
The Challenge
Despite holding substantial equity across their portfolio, the clients hit a wall on the high street. The primary hurdle was their income structure; their main earnings came from a Limited Company that had been making a loss.
Because the corporate accounts reflected a loss, traditional funders were completely unable to assist. Mainstream lenders executed a standard “computer says no” rejection, focusing entirely on the business performance and failing to look at the robust net asset wealth of the borrowers. This left the clients facing a rigid private banking deadline without access to conventional term debt.
The Strategy
Recognising the need for an alternative route, we initiated a plan by exploring various lending scenarios. Our team worked through multiple pathways simultaneously, looking at bridging, holiday lets and equity release to formulate the most secure plan for the client’s situation.
We leaned heavily into our deep lender relationships to find a viable solution. We worked closely with specialist funders to create a two-part strategy: an immediate mechanism to pay the Private Bank back quickly, alongside a sustainable long-term solution for the residual debt.
To ensure a completely smooth application, we went above and beyond by introducing our preferred solicitor to act for the client. This gave us direct control over the client’s deadlines and kept the process moving forward under strict timelines.
The Results
We successfully negotiated a plan and secured a bespoke £1,500,000 specialist bridging loan, allowing the clients to completely repay the Private Bank.
- Total Loan Facility: £1,500,000
- Pricing: 0.54% pcm
- Loan Term: 12 months
- Security Offered: First legal charge across the primary residential home and the holiday home
- Exit Strategy: Sale of the holiday home within 12 months, with a refinance to equity release for the difference.
When comparing the high street approach to our specialist strategy, the differences are clear: high street banks rely on standard underwriting that cannot assist when a main trading company makes a loss, whereas the Diamond Property Finance solution looks at alternative lending routes and structures the facility against property equity.
Furthermore, while mainstream lenders reject applications based on corporate losses, our boutique approach utilises strong funder relationships to secure short-term capital and long-term exits. Finally, traditional panels are prone to delays, whereas we introduce preferred solicitors to maintain absolute control over the client’s deadlines.
Why This Matters
This transaction highlights the importance of expert deal-structuring when traditional criteria shift. When a private bank changes its parameters, business owners are frequently left facing severe pressure if their corporate accounts don’t fit a standard box.
By exploring alternative routes and focusing on a dual-layered exit strategy, we removed the immediate stress caused by the private bank debt. Securing this facility allowed the clients to focus their energy entirely on growing their business and executing their property plans without worrying about rigid banking ultimatums. The client was absolutely delighted with the outcome.
Speak to a Specialist
If you’re navigating shifting criteria with a private bank, managing complex corporate accounts, or require a fast, high-value liquidity solution, our brokers are available to structure your financing. Contact us today to discuss your requirements.