What was the situation?
My clients were a high net worth (HNW) couple who owned a pioneering and much sought-after technology business that works to safeguard children in online environments. They had rented a property for a number of years in prime central London but, after having a new child, had found their dream family home – a beautiful £3 million property with lots of green space in the suburbs.
What was the issue?
The main issue presented by my clients’ case was that they had no regular income. Whilst their business was substantial and had secured investments from major ultra-high net worth (UHNW) investors, it was still in investment stage and had not yet begun to turn a profit. As such, the couple were also looking to put down as small of a deposit as possible.
Any retail bank is going to need to evidence income and in my clients’ circumstances, this just wasn’t possible as traditional income streams were non-existent. As a result, I knew this case would need the bespoke approach of a private bank that could assess the couple’s affordability based purely on the level of investment that had been injected into their company, the business model itself and their HNW background.
What was the process?
After taking the time to gain a holistic understanding of my clients’ wealth profile, I came to learn that they had spent years building a savvy investment portfolio that included many high-value art pieces and antique cars. Taking a view on both the business’s impressive incoming investment as well as their wider personal investment portfolio, I was able to present my clients’ case in a favourable light to my trusted network of private banks and specialist lenders.
Due to these strong relationships within the HNW market, I worked closely with a lender that was willing to think outside the box and overlook my clients’ lack of traditional income streams in favour of their wider asset base and business investments.
What was the solution?
To the delight of my clients, my relationship with a private bank meant I was able to secure a very high 85% loan to value (LTV) facility on the £3 million property with no assets under management (AUM) being required. The facility was agreed at a fantastic 2.19% margin over a 16-year term on a variable rate as given where the business was heading, my clients wanted the ability to pay the debt back at any time without penalty.
My clients were extremely happy with the flexibility this result granted them. With flexible repayments and only a 15% down payment, this solution allowed them to both secure their dream family home and keep capital set aside so they can continue to reinvest more money into their fast-growing tech business.
Lending solutions with LDNfinance
At LDNfinance, our expert brokers have a wealth of experience in securing high value mortgages for HNW clients with no regular income. We work closely with our trusted network of mainstream banks, private banks and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates and ensure you feel in control at every stage of the process. Get in touch with us today to organise an initial consultation.