- Client: UK National & Resident
- Property: Residential home in London
- Property value: £7,870,000
- Loan amount: £5,509,000
- LTV: 70%
- Rate: 2% + Bank of England base rate, variable
Enness was approached by a UK-based entrepreneur who had built significant wealth through a blockchain business and cryptocurrency. The client was looking to purchase a main residence in prime central London, valued at £7.87 million, and wanted to borrow 70% of the purchase price.
The client’s source of wealth presented a challenge. Businesses operating in emerging sectors such as cryptocurrency and blockchain can sometimes fall outside the lending criteria of mainstream banks, even where the individual has substantial assets and a strong financial position. In this case, the key was ensuring that the client was assessed on their own financial strength rather than simply on the perceived risk associated with their industry.
For entrepreneurs, the distinction between personal wealth and business activity can be particularly important when applying for a mortgage. A lender needs to understand how wealth has been generated, the underlying assets and the borrower’s ability to service the proposed facility. Presenting this information clearly can make a significant difference when dealing with specialist lending requirements.
Enness approached lenders with an appetite for complex and high-value borrowers, focusing on those able to take a broader view of the client’s circumstances. This resulted in a lender agreeing to a £5.509 million mortgage at 70% LTV, with a variable rate of 2% above Bank of England base rate.
The case demonstrates that generating wealth from an emerging or specialist industry does not necessarily prevent an entrepreneur from accessing competitive mortgage finance. The right lender may be willing to look beyond the nature of the business and consider the wider financial position, provided the circumstances can be clearly evidenced and presented.
Enness specialises in arranging million-pound mortgages for entrepreneurs and high-net-worth clients with complex financial backgrounds. If your wealth has been generated through an emerging industry or unconventional business structure, our team can explore specialist complex mortgage options suited to your circumstances.
Risk Warning:
Mortgages secured against property carry risk. If you do not keep up with repayments, you could lose the property used as security. Variable-rate borrowing means payments may increase if the relevant interest rate or Bank of England base rate rises. Property values can also fall as well as rise.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, affordability, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
