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Creating a tailored financing solution for expanding property ventures

Our clients’ wishes

Mr N and Mr C, based in the Channel Islands, run a lending business that caters to high-net-worth residents. Their approach involves purchasing properties that don’t qualify for traditional mortgages and using private financing to fund renovations in order to transform these properties into high-quality homes for local tenants.

Looking to streamline their cash flow and reduce financing costs, they reached out to us, hoping to secure a more traditional Buy-to-Let (BTL) mortgage for four of their recently completed properties.

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Our clients’ situation

Having worked together previously on mortgage facilities, we had already built a trusted relationship with Mr N and Mr C. They were keen to move to a more traditional BTL mortgage structure for these four properties, giving their business the stability of a long-term financing solution. With a large BTL portfolio generating rental income, their business was largely self-sustaining, covering most of the expenses without needing to rely on their personal income.

While their combined salaries and business income nearly covered the loan payments, there was a small shortfall. Fortunately, they were able to bridge this gap by drawing extra income from their business, which showed a healthy cash flow, reserves, and steady profits, all indicating stable growth. Their financials also showed that they could increase their personal income if needed, providing additional flexibility to meet loan obligations.

With a large BTL portfolio generating rental income, their business was largely self-sustaining, covering most of the expenses without needing to rely on their personal income.

Our client's outcome

We crafted a financing plan with a 20-year mortgage, set at 1.75% above the Bank of England Base Rate, structured as a Capital & Interest loan. This approach provided Mr N and Mr C with a competitive interest rate and a payment plan tailored to their long-term financial goals.

While their case was complex due to their business structure and the size of their BTL portfolio, they were pleased with the final offer, appreciating the significant savings and increased stability it offered compared to previous financing. Pending property valuation, this new plan has enabled Mr N and Mr C to expand their property ventures confidently, knowing they have a more predictable mortgage solution that aligned with their goals.

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Email our credit specialists directly at [email protected] or call +44 (0)1624 645000 to speak to our client services team.

Any examples of investments and structures used are for illustrative purposes only. This case study does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

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