StreamBank targets HNW borrowers with new structured finance range

StreamBank has launched a new high net worth (HNW) structured finance proposition, offering loans of up to £5m with terms of up to 60 months for borrowers whose repayment strategies require more time than traditional bridging finance allows.

Developed in response to the challenges of conventional bridging timescales, the proposition is aimed at wealthy borrowers with credible repayment strategies who need greater flexibility with repayment schedules.

The proposition combines the flexibility and individual underwriting associated with short-term lending with terms of up to five years.

It can accommodate repayment strategies linked to the sale of higher-value properties, business disposals, share realisations and development completions, where the expected proceeds may not become available within a conventional 12-month bridging term.

Loans are available from £350,000 to £5m, with facilities above £3m subject to additional approval.

Terms range from 12 to 60 months, with a maximum LTV of 65%, subject to lower limits for larger facilities.

The product is available against residential property in England, Wales and Scotland and can be used for property purchases, refinancing and evidenced capital-raising requirements.

To qualify, at least one borrower must independently have an annual net income of £300,000 or more, or net assets of £3m or more, excluding their primary residence.

The proposition offers fully rolled-up, part-serviced and fully serviced interest options, allowing repayment arrangements to reflect the borrower’s circumstances and available cash flow.

Richard Armstrong, CCO at StreamBank (pictured above), commented: “The reality is that high-value property and business transactions don’t always adhere to a 12-month timeline.

“A borrower can have a perfectly credible exit strategy, but achieving the right commercial outcome can sometimes take longer than originally anticipated.

“Taking longer doesn’t necessarily make the exit less credible. In some circumstances, allowing more time can actually support a better and more commercially sensible outcome.

 “That thinking is at the heart of this product.

“We’ve developed it to give qualifying borrowers greater flexibility where there is a strong underlying proposition and a clearly evidenced repayment strategy.

“We still apply robust underwriting, but we also recognise that substantial wealth does not necessarily mean immediate liquidity.

“The important thing for us is that the term of the finance reflects a realistic route to repayment, rather than assuming every credible exit can or should be delivered within 12 months.”