In this case study, we share how our team obtained an entrepreneur mortgage for a £3.5 million Cotswolds property. The client faced several challenges due to their complex income structure and negative credit history. Our team leveraged its knowledge and connections with private banks to find the right large mortgage.
Client Background: UK Entrepreneur with International Business Income
The client, a UK resident and national, built a successful toy manufacturing business in China. Their primary income was generated from the business based in Hong Kong. They sought an entrepreneur mortgage for a £3.5 million detached house in the Cotswolds.
Challenges Faced: Credit Issues and Complex Income
There were several obstacles in securing an entrepreneur mortgage, including:
- Negative credit issues
- An unconventional income structure with the main business based in Hong Kong. This made it difficult for many UK lenders to consider the income source.
- Self-employed mortgages can be trickier to arrange
Mortgage Solution: Private Bank Entrepreneur Mortgage
Advias recognised that a private bank mortgage would be an ideal solution as he planned to sell a portion of the business for $12 million in the near future.
This would open up the possibility of a wealth management relationship. Despite the property not being a typical “London” location, the low loan-to-value ratio made the proposition appealing.
We approached a private bank the client had previously contacted without success. Our broker presented the client’s situation more effectively, securing an entrepreneur mortgage offer that met the client’s needs. The lender agreed on a 3-year interest-only mortgage with no early repayment charges. Crucially, there was no requirement for assets under management to start the lending and banking relationship. Since the borrower was a high net worth individual (HNWI), the lender applied an exemption to standard lending rules to accommodate the client’s unique circumstances.
Results: A Tailored Mortgage Solution for the Entrepreneur
Thanks to this tailored entrepreneur mortgage solution, the borrower could stop worrying about the expiry of their current mortgage. They now have a suitable mortgage allowing time to achieve the best possible price for the sale of the shares.
Conclusion: Expert Mortgage Advice for High Net Worth Entrepreneurs
This case study demonstrates our ability at Advias to assist high-net-worth individuals. Overcoming complex financial challenges and securing bespoke entrepreneur mortgages. Even when dealing with international income and unconventional financial situations.
If you need to overcome complex financial challenges and secure bespoke entrepreneur mortgages.
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