Larger loans are available for pretty much the same purpose smaller loans and there’s little difference in the process other than the size of the monies and properties involved. The cases can potentially be more complex (if there’s a portfolio of 10x £1,000,000 development or commercial plots) but the actual process of applying and getting funds drawn down are usually fairly similar.
For the affluent homeowner there are special mortgage products available which may be more suitable than a standard mortgage – There are products which have been tailor made for high nett worth clients (such as footballers, CEO’s and directors), as the products have been tailor made to accommodate the more affluent borrower and how their incomes are generated it would make sense to speaking to a broker who understands and appreciates the investment being made – We can help with this.
It’s not uncommon to see a commercial mortgage or bridging loan for this amount, bridging loans in particular have, for a long time been a popular way to purchase or refinance a property portfolio or larger development. Larger loans are generally sought by seasoned developers or property investers to help them move onto their next investment quickly.
Commercial mortgages (as with bridging loans) don’t really have an upper limit on the funds available. You could, if the equity and figures stack up borrow £50,000,000 although it would stand to reason that such a large loan would require specialist funding (possibly from various sources where the lenders share the risk) and a solid proposition in order to complete.
Bridging loans have a number of advantages to more traditional funding, one of the main advantages is that they can usually be arranged sooner making them a useful and convenient way of securing finance quickly. Another main advantage with bridging loans is that they are mainly equity based so the property doesn’t need to be completed or even habitable.
The usual exit strategies for a bridging loan (including loans of £1,000,000 or even over £10,000,000) are the sale of a property or portfolio, refinancing for investment purposes or receiving a lump sum from other areas of business which can be used to repay the loan in full. Most bridging loans have the facility to add the interest payments onto the initial advance so in some cases no monthly repayments will be made, they would be paid when the loan is redeemed.