What was the situation?
My client was a city banker who had previous relationships with a number of private banks. He was looking to sell his existing property and make the move from central London to the suburbs after finding a dream home for his family – however, the property required extensive renovation works. The property was valued at £4.5 million, and my client was keen to secure a mortgage at 75% loan to value (LTV).
What was the issue?
To my client’s frustration, his pre-existing private banking relationships required him to place £1 million worth of assets under management (AUM) before they would consider his case and would only lend 65% LTV. This presented a significant issue as it would reduce the amount of capital my client held to finalise the development works to the property, thus making the move a much less attractive proposition.
As such, my client required a ‘dry lending’ facility whereby there would be no requirement for him to place AUM with the bank, allowing him to maintain cashflow and finance the much-needed property renovations.
What was the process?
Whilst private banking relationships have traditionally relied upon clients placing AUM with the bank (such as cash, stocks, and shares), many private lenders are now increasingly reducing their asset requirements when offering large loans. In this instance, the private bank assesses the client’s affordability by taking their wider wealth, income, and asset profile into account. At LDN Finance, we have considerable experience in securing dry loans, working closely with our trusted network of private banks and specialist lenders to arrange bespoke mortgage arrangements to suit our clients’ circumstances at competitive, market-leading rates.
After gaining a holistic understanding of my client’s full financial profile, I discussed the case with a private bank I work closely with and was able to produce a clear breakdown of the client’s income, including large bonuses.
What was the solution?
To my client’s delight, I identified a bank that would consider lending up to 75% of the property’s value on a dry lending basis with a fixed rate of 2.09% over a two-year term. This provided the client with the necessary liquidity to not only close the transaction with a smaller deposit but also retain the required funds to commence works on the property.
Lending solutions with LDN Finance
Are you looking to secure a large mortgage without assets under management? At LDN Finance, our expert brokers have a wealth of experience in securing high-value mortgages without AUM, working closely with our trusted network of private banks and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates. Get in touch with us today to organise an initial consultation.