In addition to traditional mortgages, Enness Private Office can also confidently arrange high-value short-term solutions such as bridging loans for our high net worth clients. For example, I recently organised such a solution for a foreign national client who needed to raise £1.4million of borrowing.
My client was an Italian foreign national who was resident in the UK. As mentioned, he hoped to raise a significant amount from his residential property to repay various debts.
However, after having been self-employed for the last decade, he had recently closed down his company. As such, he had recently started working and was earning a basic salary with an investment company, so we only had his employment contract as proof of income. This contract showed his basic salary of £200,000; this was not going to be enough to support the level of borrowing required.
However, his contract does allude to the additional income he could expect to receive, including a significant bonus scheme and pay-outs from specific deals. We needed a short-term funding solution that would tide my client over until this additional income came into play.
OUR SOLUTION
We would need to approach a private lender who could take a view on stretching the affordability. I, therefore, contacted a prestigious private bank who approaches their finance solutions on a case-by-case basis. I was able to arrange a regulated bridging loan at an interest rate of 0.5%. This is an excellent rate for a bridging loan, which typically will not drop below 0.48%. My client also wanted to roll up the interest, which we were able to do.
The exit strategy for this would be the pay-out of the bonus discussed above. We would then look to remortgage the bridging loan once his cash flow is more regular.
If you need a large loan on a short-term basis, please do get in touch and I would be pleased to advise you further.
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.
