A high-net-worth client with significant assets but a newly established business struggled to secure funding for a £2.75M London property. We structured a bespoke pre-funded facility that allowed the client to secure the property and raise capital for property investment without requiring immediate proof of regular income.
The Challenge
The client faced a few hurdles in securing the required borrowing:
- Complex Income Structure: The client had recently started a new business and could not prove sufficient regular income to satisfy traditional lenders.
- Raising Capital: The client needed to secure a high LTV mortgage to fund the high-value acquisition while maintaining liquidity.
- Cash Flow Management: Finding a way to cover initial mortgage payments without a regular monthly income.
The Strategy
To structure a deal that met the client’s needs, we leveraged our network of specialist private banks:
- Asset-Based Underwriting: We presented the client’s extensive liquid assets and cash savings (valued in excess of £3 million) as collateral rather than relying on current earned income.
- Pre-funded Mortgage Account: We negotiated with a private bank to set up a dedicated account to fund the mortgage payments over the initial five years.
- Interest-Only Flexibility: We structured the facility to give the client ample time to reinvest and grow their business, increasing their income for future needs without the burden of heavy upfront repayments.
The Results
- Total Loan Amount: £2,75M
- Assets Pledged: In excess of £3M
- Mortgage Structure: Pre-funded interest-only facility for five years
- Key Outcome: The client successfully acquired the London property and maintained liquidity to grow their business.
Why This Matters
For high-net-worth individuals, standard criteria often prevent them from acquiring prime real estate. By utilising a private bank relationship to structure a pre-funded facility, HNWIs can successfully raise capital for property investment or acquire high-value residences even during career or business transitions.
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Ready to structure a bespoke loan for your complex financial profile? Book a consultation with our team today.