- Client: High-net-worth individual
- Loan Amount: Circa £4.5 million
- Purpose: Refinance of an existing bridging facility
Enness was approached by a high-net-worth client looking to refinance an existing bridging loan secured against a high-value property. The existing facility carried a high cost, and the client needed to replace it with a more competitive long-term financing solution.
The case was particularly challenging because the client had no income or additional assets that could be used to support the new borrowing. The property therefore needed to provide the principal basis for the refinance, while the lender also needed to be comfortable with the client's wider circumstances.
There was very little time to find a solution. The existing facility had only around four weeks remaining, making it important to identify a suitable lender quickly and progress the application efficiently. The objective was not simply to refinance the existing debt, but to secure terms that would materially improve on the previous arrangement.
Enness reviewed the available options and approached lenders with an appetite for high-value, property-backed transactions involving more complex circumstances. After assessing the case, a suitable lender was identified and terms were negotiated for a circa £4.5 million refinancing facility.
The new facility offered a lower interest rate and more attractive fees than the client's existing bridging arrangement. This provided a more cost-effective structure and allowed the client to replace the previous high-cost borrowing within the required timeframe.
Enness worked closely with the lender and the other parties involved to keep the application moving throughout the four-week window. Despite the lack of conventional income and the size of the facility, the refinance was successfully secured within the required deadline.
The case highlights the importance of lender selection when refinancing high-value property in circumstances where traditional affordability criteria may be difficult to satisfy. Where a borrower has substantial property security but limited income or other assets, a specialist lender may be able to consider the wider circumstances and structure a facility accordingly.
For clients looking to replace an existing bridging facility, remortgage solutions can provide an opportunity to review the cost and structure of existing borrowing. Where the circumstances are more complex, complex mortgage solutions may also be relevant, subject to lender criteria and affordability.
If you need to refinance a high-value property within a tight timeframe, speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Bridging finance and mortgage finance are subject to status, valuation, underwriting and lender criteria. Bridging finance is short-term borrowing and may carry higher costs than conventional mortgage finance. Property values can fall as well as rise, and failure to meet repayment obligations could put secured property at risk.
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.
