It’s been a busy few months for the Specialist Mortgages team with new senior hires, continued improvements in both process and technology and record levels of lending.
Our experience and expertise in facilitating complex lending is always sought after for those looking to help overseas clients and so we thought it was a good time to share some of the deals we’ve worked on.
As always, give us a call if you wish to discuss your client’s requirements in more detail. You can get in touch with the team by calling 020 7862 6244 or alternatively email us.
| Background | Holiday let investor needed to raise £300k to repay existing debt and capital raise to repay the business the funds used to purchase the property. |
| Challenge | The AST income for the year came to just over £10,000, which would have allowed the borrower to borrow c£180,000 with a loan to value ratio of less than 40%. |
| Aim | Offer the required LTV to allow the investor to raise the required finance. |
| Deal | HTB identified the property had the potential to generate a significantly greater income of £10,000 a year. The team were able to obtain confirmation that the property could let out at a weekly rate of c£900. With this information, the team applied a prudent occupancy of 30 weeks which generated an annual income forecast of £27,000. This calculation more than allowed the borrower to get the requested loan amount of £300,000 with an LTV of 61.86%. |
| Background | The broker came to us in February to assist his client, who was looking obtain a term facility on a newly built flat that the client purchased with the aid of a bridging loan 5 months earlier. |
| Challenge | The client was a Pakistani national and was residing in Pakistan, and prior to this was resident in Dubai for 4 years, only UK link was a communications account. |
| Aim | Offer funding at a sufficient level to allow the client to exit his bridging facility that was used to purchase the property. |
| Deal | HTB offered the client 65% LTV on a 5yr fixed product at 4.39% (standard pricing). We established a credit footprint on the client at the UK address in which they had previously resided at. We obtained evidence of the client’s existing earnings and previous earnings in Dubai (via an employer reference) to assist with the source of wealth evidence. |
| Background | HTB presented with a new build apartment block (>100 units) that sought £3m to exit development finance. Client sort to sell a minority and units, and retain the remainder. Upon review of the security and the client’s long-term business objectives, there appeared to be room for a significantly larger facility. |
| Challenge | The complex had recently completed and had relatively light marketing, which was reflected in few sales and sparse tenanting. |
| Aim | To provide the clients with a large facility that would fund their next development project. |
| Deal | HTB reviewed the client’s group of companies, financials and assets. The Bank structured an inter-company guarantee, which cross utilised income to service the debt on the Bank’s security. A net advance of £5.8m was provided, allowing the client to exit their development finance, fund their next development project and had favourable overpayment terms should further units be sold. |
| Background | Funds required to repay an outstanding development facility (£5.6m) and investor funds (£300k). |
| Challenge | Due to the nature of the security (x16 apartments, x3 commercial units) HTB needed to lend on a block discount. This meant that the maximum standard leverage (75%) was not enough to repay the investors. |
| Aim | Strong clients and security, HTB needed to devise a strategy that provisioned enough funds that would allow the clients to settle all outstanding balances. |
| Deal | HTB took a holistic approach to the transaction. We provided a gross lend at 79.6%, discounted our arrangement fee and amortised the introducer’s fee. There was a full 3 year amortisation profile, that brought the deal back into standard policy with 2 years remaining on the fixed rate. |
| Background | BVI company, £7m portfolio which consisted of nine residential flats as well as four ground floor offices. |
| Challenge | Properties were held in a Bare Trust and the UBO owned no other assets. £5.1m was required to repay existing bridging loan that was used to develop the property, and capital raise for further investment. Current use of property by tenant was as a quasi-hotel. |
| Aim | To be able to complete due diligence and fully understand the structure of the deal to raise the required finance. |
| Deal | HTB provided a 75% advance of £5.1m which was in the main agreed using the rental income from the residential element of the asset. |