When you have complex, non-conventional income, yet benefit from considerable net worth in property, how can you raise funds efficiently and flexibly?
This was the question our clients had; Mr, a seasoned property developer and Mrs, a successful entrepreneur across numerous businesses and industries. With fluctuating income contingent upon shifting project timelines, the clients aimed to remortgage their main residence valued at £5,500,000. The primary objective was varied; securing £1,000,000 for home improvements, business investments, and school fees, without the burdensome demands of traditional mortgage underwriting which go with such complex income.
Navigating the mortgage landscape with unorthodox income from complex business holdings posed a substantial hurdle. We identified a lender that could assist with a normal mortgage, however given the complexity of the income, we knew that the underwriting would take 6 – 8 weeks. They would demand exhaustive proofs of income that neither client could conveniently supply. The clients desired a flexible process and greater certainty of funds.
Understanding the unique financial scenarios of high-net-worth individuals, Private Finance tailored a bespoke mortgage solution: a five-year roll-up bridging loan. This tailored solution permitted an initial withdrawal of £500,000, with the remainder of the lending available in staged drawdowns over the following three years. Opting for a variable rate, the solution boasted no early repayment charges, aligning perfectly with the clients’ future plans to downsize. This approach mitigated the need for regular income proof through a high-net-worth exemption, facilitating fast-track processing, securing the loan based on the existing home equity and without disrupting their cash flow for business investment and growth.
The deployment of the tailored bridging loan concluded successfully within an efficient three-week timeframe.
Main outcomes and benefits:
If this scenario resonates with you or you’re seeking personalised mortgage advice for another situation, please get in touch — we’d be happy to see how we can help. Call us on 0800 980 8777 or email info@privatefinance.co.uk.
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Disclaimer:
The information presented in our case studies is intended for illustrative and marketing purposes only. Some case studies may be based on multiple enquiries or hypothetical scenarios to demonstrate typical processes or outcomes. Not all case studies represent completed business transactions, and the inclusion of a case study does not imply that the business was successfully concluded.
