The net loan was for £230,000, which is £30,000 over the lender’s recently increased maximum loan size.
The loan was secured on a £1,600,000 property in Mayfair and used to restructure the customer’s finances by consolidating their more expensive debts as well as refurbishments required to their property.
The client is tied into an interest-only mortgage and therefore was looking for a product that would prevent any unnecessary extra costs and leave his existing mortgage deal intact. He was advised a secured loan would offer a cheaper alternative and was immediately introduced to Loans Warehouse’s newly launched high net worth team.
Given the deal’s strength, it was referred to Shawbrook to see if they had an appetite to lend.
A swift decision was made and other than the loan size, the client met all the criteria of Shawbrook’s Platinum product range at a rate of just 7.75%.
Matt Tristram, joint managing director of Loans Warehouse, said: “This case is another perfect example of how using a secured loan, rather than opting for a remortgage, is the best option for a customer looking to raise capital whilst still leaving their current mortgage deal intact. It also highlights the flexibility of the secured loan market and we are delighted to be involved in what I consider a significant turning point for the industry.”
Maeve Ward, head of sales at Shawbrook Bank, added: “We are delighted to have worked with Loans Warehouse on this case and although the loan was larger than our maximum loan size, it demonstrates our flexible approach and common sense lending. We assess each case on its individual merits rather than take a ‘one size fits all’ approach.”
