Scenario:
The client had been declined by another bank prior to approaching Magni Finance. This was due to the nature of the property as it was non-standard construction.
Challenges:
Due to the size of the loan and the property being very unique, for most lenders, this would fall outside of their lending policy. This can make a property unattractive to the wider market and as such could affect future saleability therefore making this type of security higher risk to lenders.
Solution:
Having a wealth of experience in complex mortgages, our broker was able to quickly source a private bank who were more than happy to assist. The clients’ financial situation was strong, with a substantial wealth in the background, lowering the risk to the bank. Unlike standard banks, private banks are not restricted on how much they can lend and what type of property they can lend against. They are willing to take a holistic approach to lending requirements and for the right clients, can lend against the quirkiest of properties.
Key figures:
Property value: £3 million
Loan amount: £2 million
LTV: 70%
Repayment type: Interest only
Product type: 5 year fixed
Interest only: 2.55%