Product of the week: flexible borrowing with mortgage reserve account

We understand that many of our clients have complex financial arrangements and require wealth management strategies that accommodate for this. To this end, we have carefully built relationships with private banks who offer flexible borrowing on a large scale.

This week’s product of the week is a mortgage reserve account; a flexible borrowing facility secured against up to 70% of the value of your home, from a prestigious private bank. In its simplest term, this facility acts as an overdraft.

The facility is offered on a standard variable rate of 3.75%, and can typically be arranged for loans over £1million. This product can also be split so that you fix an element in with one of the lender’s competitive fixed or tracker products, whilst leaving the remaining balance on the overdraft facility, ready to be used when it is needed.

The ultimate appeal of this product is its flexibility. If you are somebody who regularly needs to draw down funds at speed, such as an investor who wants to move quickly on new opportunities, this is ideal for you as it means you avoid going through the underwriting process every time you need more funds. You can then pay back the funds at a later date.

  • Mortgage reserve account
  • Up to 70% loan to value (LTV)
  • 75% interest

This product gives you access to your funds quickly and conveniently, at a competitive rate of interest. Additionally, if you have surplus funds, you are able to make reductions to your facility which you can then draw on again at a later point.

I have direct experience of arranging this product for my clients. For example, I recently arranged this facility for a client with a vast portfolio of overseas property. In order to invest quickly when the opportunity arose, my client needed to be able to draw funds down as and when he needed to, so this was an excellent result for him,

This lender is a prestigious private bank with whom we have an excellent working relationship. If this sounds like something which could benefit you, please don’t hesitate to get in contact for a further discussion.

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