£1.2 million equity release for HNWI with no regular income
What was the situation?
Our client was a high net worth individual (HNWI) who was in a strong liquidity position after having recently sold a successful technology business. They had decided to stop working for a period of time and therefore could show no ‘traditional’ income from an employment perspective. The same client was looking to secure a sizeable equity release from an unencumbered asset they owned in central London (valued at £1.8 million) with a loan of £1.2 million, to help fund living costs for them and their family for the next five years whilst they focused on raising their young children.
What was the issue?
Without a traditional income stream, mainstream retail banks – who will ultimately offer the most competitive interest rates – are typically unable to assist with cases such as this due to their stringent affordability criteria. Essentially, this would result in my client needing to pay a higher interest rate to achieve his requirements.
What was the process?
After engaging a trusted private bank with whom we have a strong working relationship with, we were able to lean upon our client’s strong liquidity position and status as an HNWI, as opposed to their regular income streams. It was clear to see that the client could easily service the mortgage debt over the next five years from their cash savings and investments.
What was the solution?
We were able to secure a variable product at 2.49% for the next five years, raising the £1.2 million loan with minimal fuss – a brilliant rate secured for our client considering their lack of traditional income. Not only was the released equity enough to cover our client’s expenses including considerable school fees, but they would now be able to turn their attention to spending time with their young family after an intense period of work commitments.
Lending solutions with LDN Finance
Are you looking to secure an equity release mortgage on an existing asset? At LDN Finance, our expert brokers work closely with our trusted network of private banks and specialist lenders to arrange bespoke lending arrangements to suit your circumstances at competitive, market-leading rates. Get in touch with us today to organise an initial consultation.
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