When our client approached Willow Private Finance, he was in a difficult position. Having recently sold his trading business, he had no demonstrable income and was struggling to re-structure an existing debt of £2.2m with a private bank.

The challenges were numerous. At 50 years old, our client was considered to be in a higher risk category by many lenders. In addition, the security address was not deemed desirable, which further increased the risk if the loan defaulted.

Despite these challenges, Willow Private Finance was able to help our client in a number of ways. Firstly, we secured a lender who applied the 'high net worth individual exemption', which meant that the normal regulatory affordability rules did not apply. This was a major win for our client as it meant that he was able to secure a loan despite his lack of demonstrable income.

In addition to this, we were able to negotiate a committed term that extended until our client's 70th birthday. This was a significant achievement as it meant that our client would have a much longer period of time to repay the loan, giving him more flexibility and peace of mind.

Furthermore, we were able to arrange the loan as interest only, which was acceptable to our client as it aligned with his overall investment strategy. This was another important factor that helped to make the loan more appealing to our client.

Finally, we were able to secure a margin of 2.49% over the bank base rate ( 3% at the time), as well as a 0.5% bank arrangement fee with standard valuation fees. This was a very competitive rate and helped to make the loan more affordable for our client.

Overall, Willow Private Finance was able to help our client in a number of ways, including securing a lender who applied the 'high net worth individual exemption', negotiating a longer term commitment, arranging the loan as interest only, and securing a competitive rate. We are proud to have been able to assist our client in this difficult situation and are committed to helping other clients in similar circumstances.

Client position

A UK national who had no demonstrable income as he had recently sold his trading business.

Requirements

To effectively re-structure an existing debt of £2.2m with a private bank.

The challenges

The client’s age (50+) meant loan terms were more restrictive and the security address was not

deemed desirable by many lenders so it was higher risk if the loan defaulted.

Terms achieved by Willow Private Finance

Secured lender who applied the 'high net worth individual exemption', meaning the normal

regulatory affordability rules did not apply.

Committed term extended until 70 years of age.

The loan was arranged as interest only - agreeable with his overall investment strategy

A margin of 2.49% over bank base rate (3% at the time).

.5% bank arrangement fee with standard valuation fees