A flexible lending solution for an ultra-high-net-worth client

The clients had built up their wealth over a long period of time. After selling their original business in the early 2000s, they reinvested the proceeds into several new ventures, many of which were very successful.

They also spent years growing a varied property portfolio. This included upgrading properties, selling some at a profit, and reinvesting the money elsewhere. It was a hands‑on, active approach that helped them to continue building their wealth.

The property involved in this case was bought through a company for tax reasons and as a long‑term investment. After completing a development project, the clients decided to rent it out and were able to confirm that a tenant would be in place by the time the mortgage would be completed.

Once all costs and tax were taken into account, the rental income on its own wasn’t quite enough to meet the usual income requirements for a 65% loan‑to‑value mortgage under a Special Purpose Vehicle (SPV) structure.

Rather than taking a rigid view, we looked at the full picture. We agreed a structure that included two years’ worth of interest set aside using a cautious stress test rate. This helped cover the gap and made the early years of the loan less risky.

We were also able to take comfort from the clients’ wider financial position. They held significant assets that were likely to be sold during the loan term, meaning the mortgage could be repaid in full. A personal guarantee was also provided, showing that they could support the loan if the property was ever empty or their regular income changed.