A high-net-worth client wanted to remortgage their £3.5M residential property to release equity for extensive home improvements. We helped them secure a private banking facility that accommodated their complex employment profile and the atypical setup of their property.
The Challenge
The clients faced several obstacles in securing the desired borrowing:
- Complex Employment History: The sole earner had recently changed jobs, meaning they lacked an established earnings track record at the new company.
- Atypical Property Setup: The property included two outbuildings operated as holiday lets, which many traditional lenders avoid.
- Raising Capital: The clients needed to remortgage to release equity in the UK to access funds for significant home improvements while keeping monthly outgoings low.
The Strategy
To overcome these challenges, we approached a private bank capable of underwriting complex, high-value cases:
- Income Verification: To bypass the lack of a recent track record, we supplied the client’s CV, historical income records from previous roles, and a letter from the Financial Director confirming the new salary.
- Specialist Lending Alignment: We found a private bank comfortable with mixed-use residential and holiday let outbuildings.
- Mortgage Structure: We secured a facility based on an interest-only mortgage in the UK at a low fixed rate for five years to manage cash flow. The exit strategy was tied to the holiday let income and pension funds.
The Results
- Total Loan Amount: £1.75M
- Loan-to-Value (LTV): 50%
- Capital Raised: £1.75M
- Mortgage Structure: 5-year fixed interest-only mortgage
- Key Outcome: The clients secured the necessary funds for their home renovations and integrated the unusual property assets without issue.
Why This Matters
When complex employment changes or mixed-use properties create barriers with high street lenders, specialist brokers can help high-net-worth individuals raise capital for property investment and home improvements. A tailored, private bank solution ensures your borrowing potential is maximised without disrupting your broader portfolio.
Speak to a Specialist
Ready to remortgage to release equity from your property? Book a consultation with our team today.