Problem
- Client had benefitted from historically low interest rates but was unable to unlock significant equity gains accumulated over time
- Portfolio now at less than 50% LTV — substantial equity trapped
- Ambitions to expand but needed liquidity without losing financial efficiency
- Required a bespoke solution, not a standard product
Solution
Engaged a London-based private bank with expertise in high-value portfolio refinancing. By structuring a bespoke solution:
- Consolidated the client's entire portfolio into a single financing facility
- Secured a £19M single-loan facility, consolidating all existing mortgages and unlocking £6M in capital
- Structured the capital raise within an investment portfolio managed by the client’s private bank, maintaining liquidity
- Provided access to a Lombard lending facility, allowing the client to use investment-backed financing for future projects
Outcome
- Simplified portfolio financing with a £19M structured loan at an ultra-low 2.1% annual rate
- Created a £6M investment portfolio projected to yield 6.5% annually — nearly offsetting mortgage interest costs
- Enhanced cash flow and portfolio diversification, ensuring sustainable long-term growth
- Client has diversified their overall portfolio, created a cash facility, and dramatically improved cashflow
Key Lesson
A £19m portfolio refinance is won on structure, not rate alone. Splitting security across the right lenders — and pairing the facility with the client’s private bank — released capital without disturbing the portfolio’s income. Expect the same approach wherever a portfolio has outgrown its original financing.