Loans Warehouse has completed its first secured loan via Shawbrook Bank’s Larger Loan plan for a £190,500 for property renovation.
The 16-year term loan is secured on a £2.7m detached property for a client residing in Maidenhead who had a £1m interest-only mortgage and was unable to borrow extra funds without completing a full remortgage.
Matt Tristram, joint managing director of Loans Warehouse, said: “As more mortgage holders are becoming increasingly restricted in their options we are seeing an increase in demand from high net worth borrowers looking to raise capital from their property.
“When it comes to advising on the best way to raise capital, advisers should really be considering the options a secured loan can provide.”
The client, introduced to Loans Warehouse by an independent mortgage adviser, was placed on Shawbrook Bank’s Platinum product which has recently been extended after brokers reported a surge in demand from high net worth individuals.
The client knew that losing the interest-only facility would add unnecessary extra costs and therefore wanted to protect it. He was advised a secured loan would offer a better alternative as they are not tied to the longer term of a mortgage.
Tristram added: “When it comes to advising on the best way to raise capital advisers should really be considering the options a secured loan can provide.”
Maeve Ward, head of secured lending at Shawbrook Bank, said: “By taking a secured loan with Shawbrook the client had the flexibility to complete the renovations whilst leaving his attractive mortgage in place.
“Loans Warehouse and Shawbrook work closely to manage their client’s expectations and deliver a quick and efficient service. Brokers are at the heart of our business and we work in partnership to continually improve our products and systems.”