Key facts:
- New build property in a gated village, Cambridge
- Property price: £3,450,000
- Loan amount: £2,415,000
- LTV: 70%
- Rate: 2% above Bank of England base rate
- Over how many years: 5 years
In this case, the client was a CFO of a new company involved in BioMedicine. With the company going through its Series B funding, the value of the client's shares was predicted to increase significantly.
The client was looking for a residential mortgage that had the flexibility to overpay as and when they cashed in some of the shares in the company when it went to IPO. Moreover, he needed an interest-only mortgage and was very relationship-driven with the bank.
This case was tricky for a few reasons. Firstly, as the business was young, it was making paper losses which immediately ruled out most of the market. Secondly, this was below the £4m minimum starting point for this bank. The company was pre-IPO which meant it was much harder to verify the value of the shares but the bank did the banking for the business and knew it was about to take off so gave us an advantage. Finally, the client had a unique arrangement with the vendor who offered to ‘loan’ the deposit until their Series B funding was completed so the client did not have the cash deposit for the purchase.
As they were a private bank, they were incredibly accommodating compared to other lenders on the market. The private bank fully appreciated the value of the client’s business and the future opportunities that the client could bring to the bank. Most banks would also not accommodate the client’s deposit source, which was quite unique.
The client ended up with a competitive product with the solution they needed while also establishing a relationship with a private bank which was important to them.
As this case illustrates, private banks can offer very low private mortgage interest rates, personalised mortgages and bespoke underwriting. They can also move very quickly and produce solutions high street mortgage lenders can't.
If you think a private bank mortgage would be beneficial, speak to one of our team and let us navigate and negotiate on your behalf.
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.
