‘Why launch a property finance business in such a dismal economic climate? Are you mad?’ are questions we are asked again and again. But for Jonathan and myself, setting up our own multi-disciplined property finance business exclusively targeting the £1m-plus funding markets was an obvious thing to do.
We’ve both focused on arranging finance for high-net-worth individuals for some years and although the economy is fragile, the high-end mortgage market continues to thrive. Many mainstream lenders are simply not interested in offering large loans, or when they do, insist on numerous restrictions. But the private banks and specialist lenders, who we work closely with, continue to maintain an appetite to lend.
Meanwhile, Prime Central London operates as a separate property market to the rest of the UK with London property prices rising this year while values in other parts of the country have fallen.
It is a fallacy that wealthy buyers do not require mortgage finance; they frequently do. Some borrowers need to raise finance because they are not in a position to purchase solely with cash, while others choose to borrow against their property to assist with financial/tax planning and to mitigate currency risk. We can help in all these scenarios, advising our clients to ensure they get competitive borrowing terms.
Contrary to what many think about the current economic climate, we believe there isn’t a better time to launch a property finance business. It will be a challenge but one we are looking forward to. Contact us if we can be of any assistance to you with your funding requirements.