Are You Looking To Borrow Against You Share Portfolio

Rather than tap into an existing stock portfolio, you can use credit as a valuable funding tool. This can be personal or company borrowing against your stock loan portfolio. Liquidating a great performing stock portfolio built up over time or other assets prematurely may compromise your long-term investment goals, so borrowing funds may be a better strategy to preserve your assets and take advantage of investment opportunities. If you are an investor with a reasonable sized stock portfolio there are stock loan lenders that can help you to be able to borrow against stock portfolioto help free up vital cash flow funding.

• Finance is available from £250,000 to loan against securities. Can finance lower lending amounts if shares are highly liquid and blue chip on major stock exchanges.
• Stock loan to value up to 55% loan to value for blue chip portfolios
• Alternative Investment Market (AIM) portfolios considered on highly liquid stocks
• Acceptable securities are blue chip shares on any exchange and highly liquid
• Loans can be drawn down in GBP Sterling, Euro & US Dollar
• Custody can remain with 3rd party
• Margin loan with recourse ( NON title transfer )
• Term Up To: 36 months ( early repayment allowed with full loan interests payable )
• Loan rates from : 5% pa fixed
• Interest servicing monthly after 1st year .

Raise funds without liquidating your share portfolio

Selling portfolio assets in order to access the liquidity you need may result in tax liabilities. With a Portfolio Loan you could take advantage of the freedom to access funds and to borrow against shares without selling your existing stock portfolio assets.

Convenient Access To Funds From Your Share Portfolio

The faster you can react, the better. You’ll receive a decision on your loan within days rather than weeks. Funds can be drawn down in sterling, US dollars, GBP or euros.

Simple transfers

If your assets are managed elsewhere, Portfolio lenders can help ensure a smooth transfer of your assets to help you release funds from your stock portfolio allowing you to borrow against securities.

Why Borrow Against Your Share Investment Portfolio

A share portfolio loan is a type of margin loan that lets investors borrow against their stock portfolio at a low interest rate. The idea is that the portfolio loan is collateralized by your stock positions from the portfolio lenders.

With that money, you can use your portfolio lending loan for anything really – from home improvement, house purchase or to paying down other debt, and much more.

If you have a large amount of money tied up in your portfolio (maybe through your own investing, or you received stocks as part of an IPO), you may not want to sell your positions if you need cash. That’s where the portfolio line of credit comes in letting you borrow against stocks. You can simply borrow against your positions, without having to sell your portfolio.

Furthermore, by not having to sell your positions, you also can avoid potential taxes levied on the sale of stocks – which if you have highly appreciated stock, can be huge.

You’re allowed to borrow up to 50% of your stock portfolio to purchase securities or any other asset you choose to purchase. Your loan accrues interest, but you can pay it back anytime – either through a cash deposit or by actually selling some securities and using that cash.

What Are The Risks Of Borrowing From Your Portfolio

It’s important to realize that there are risks involved in a margin loan – just like any other type of debt.

There are three main risks when it comes to a margin loan, portfolio line of credit or loan against shares.

1. First, if you use the money to invest, you could lose the money (and as a result, your losses are magnified).
2. Second, interest rates on the loan could change. Right now, we’re at historical lows for interest, but rates could rise in the future. Theoretically, they could also go down as well – which would be a small win.
3. Finally, you could be subject to a maintenance call. If your portfolio value declines, your account can trigger a maintenance call and you either have to deposit new cash or sell a portion of your portfolio to cover the loan. While you’ll usually be notified of the need to deposit extra money, if your portfolio experiences significant losses, the brokerage may sell your stocks automatically to cover the loan (due to being legally required to).

What Are The Best Use Cases For Share Portfolio Borrowing

There are a few use cases where we see using a stock portfolio securities based line of creditas making a lot of sense. These use cases do rely on you having a solid portfolio position (likely at least $100,000 or more), and most of the portfolio is highly appreciated stocks – meaning you don’t want to sell them.

Plus, we’re also working under the assumption that you can afford the loan whether or not it’s a margin loan.

Debt Consolidation: If you have other debt (such as credit cards), it could make a lot of sense to consolidate your debt into a margin loan. You would likely save huge amounts in interest – since the best margin loans are at 3.5% or less, while credit cards are double-digits.

Car Financing: If you need to purchase a new car, using a margin loan could make sense. The rates are likely lower than you could get for a purchase.

Home Improvement: If you’re looking to do a renovation or addition, it could make sense to use a portfolio line of credit instead of a.

Purchase More Shares: If you are looking to leverage up against your existing portfolio of stocks and shares then you can borrow against your existing stock portfolio to purchase more shares in case you think the market is going to increase in value. There is more risk to your existing portfolio but there is also more upside potential for the future.

We don’t like using a margin loan to purchase more stocks. Yes, it can magnify your returns, but it can also magnify your losses as well – and that can hurt financially.

Benefits Of Borrowing Against Your Stock Share Portfolio

Flexible, hassle-free lending solutions with on-going support from your personal Lending Specialist.

Ease and flexibility

There’s no application charge and you can buy and sell assets at any time, provided you have sufficient collateral with us.

Space to grow

Thousands of globally traded assets have been approved as collateral, and the number is growing.

Diversification

If you use this service for leverage, you can re-invest, increasing the gross value of your portfolio and potentially increasing diversification. However, while investment leverage can magnify gains in a rising market, it can also magnify losses when the market falls.

Dedicated support

Our stock lending portfolio relationship managers will be with you every step of the way, from arranging your initial first tranche of stock portfolio lending right up to making sure your last tranche stock portfolio loanis issued.

Liquidity

Make an immediate purchase, take advantage of an opportunity or be assured of a line of credit for short-term borrowing.

Leverage

Introduce strategic leverage to your investment portfolio – it could amplify returns in a rising market, though a market fall would amplify losses.

• With a leveraged investment you would be responsible for repaying the loan and interest on it. Adding leverage to your portfolio may amplify returns in a rising market, although losses may also be amplified if the market falls
• Interest rates on the loan may exceed any gain on the investment. They may also change during the term of the loan
• There may be an extra risk if you borrow in a different currency to the currency of the assets in your portfolio
• We recommend you consult your tax adviser before using the service

We will review your portfolio and, if the value drops, or the value of your exposure increases, or if there isn’t enough collateral to support the exposure, our lenders will ask you to add more cash or securities to your portfolio. If this isn’t possible, we may have to sell some or all of your assets.

Understanding Borrowing Against Your Stock Portfolio

Generally offered through private institutions, family offices and private banks, lending against your stockloan portfoliois mostly available to people who have a significant degree of wealth and capital.  Clients stock portfolios would tend to be valued from USD500,000 upwards as minimum loans for blue chip shares traded on major stock exchanges tend to be from USD250,000 upwards. People tend to seek out securities-based portfolio loans if they want to make a large business acquisition or if they want to execute large transactions like real estate purchases. Such loans may also be used to cover tax payments, vacations, or luxury goods by borrowing against your stock portfolio.

Here’s how the process works.

• Lenders determine the value of the loan based on the borrower’s investment portfolio. In some cases, the issuer of the loan may determine eligibility based on the underlying asset. It may end up approving a loan based on a portfolio consisting blue chip liquid and less liquid stocks.
• Once approved, the borrower’s securities—the collateral—are deposited into a custodian account.
• The lender becomes a lien-holder on that account.
• If the borrower defaults, the lender can seize the securities and sell them to recoup their losses.

In most cases, borrowers can get cash within just a few days. It’s also relatively cheap—the rate borrowers are charged is generally variable based on the 30-day London InterBank Offered Rate (LIBOR). Interest rates are typically two to five percentage points above LIBOR, depending on the sum.

Also known as securities-based portfolio borrowing or non-purpose portfolio lending, shares based portfolio borrowing has been an area of strong growth for private institutions since the global financial crisis. In fact, stock portfolio based lending accounts and balances have surged since 2011, facilitated by the steady rise in equities and record-low interest rates. Such credit is popular because it tends to be easier to obtain and requires far less documentation than a traditional loan.

Share Portfolio Lending Funding Process

• Capital Recipient (or “client”) submits inquiry for funding by providing a portfolio stock symbol or portfolio stock code and target transaction amount.
• We determine the viability of the transaction, and calculates a maximum transaction amount, relative to the value of the stock and an interest rate, or Maintenance Fee, based on an assessment of both short and long term risks.
• We issue a term sheet to client to review.
• Terms are negotiated and finalized.
• We send contract documents to client for review.
• Final contract is negotiated and signed.
• Both parties coordinate a delivery date with their respective brokerage.
• Transaction is funded normally 3 to 7 days.
• Stock portfolio transaction can be funded with 1 day in extreme situations.

Global stock portfolio loan lendersserve the investment and wealth management needs of a select group of ultra-high net worth individual and institutional clients.

BENEFITS WITH YOUR STOCK PORTFOLIO LENDING

• You will instantly Gain access to Money & Liquidity fast, privately, easily and cheaply using your publicly traded stocks and securities.
• Get liquidity for any purpose using your securities, reduce concentrated risk exposure and solve complex puzzles to permit you to instantly achieve your life goals.
• Almost all Major Worldwide Stock Exchanges are accepted as well as borrowers from around the globe .
• You can PROTECT your stock portfolio and GET CASH with our non-recourse stock loan or other structures.
• Lenders lend against securities free trading on most foreign exchanges, message us now to get solutions to your specific needs.
• Many clients wisely use stock loans to invest in their business, to buy real estate, to buy luxury items, boat, cars, rare art etc. or to just to have cash on hand.

10 Major Benefits For The Borrowers Of Non-Recourse Stock Portfolio Loans or Marging Recourse Portfolio Loans

1) You are not personally liable for the loan if you choose the non recourse portfolio lending option when taking a security backed line of credit.

2) You are not personally guaranteeing the loan, so you may not be required to disclose to others the details of the stock loan, for privacy many borrowers prefer this feature benefit.

3) You will have a clean personal balance sheet that leaves room for other refinancing and acquisition financing opportunities and can make borrowers more attractive to lenders.

4) Our stock portfolio lendershave no recourse against you  – They cannot go after you personally if  the lender sustains a huge loss of money on your loan, The stock lender takes the loss and all the risk, you are not at risk of repaying any losses from a sudden collapse in the price of the securities pledged for your loan.

5) The lenders loan structure provides access to you to ongoing sources of capital with other financial companies because their stock loan is non-recourse.

6) You can walk away from the loan, the day after the loan is funded and not be liable for any future interest payments or principal repayment with stock lending non-recourse loans.

7) Your personal Credit, financials, income, tax returns do not come into consideration with a non-recourse loan.

8) In the case of a default, the lenders can only seize the collateral pledged for the loan and cannot go after any of your other personal assets.  You are safer with a non-recourse loan and have more options and security than a recourse bank loan or a margin loan.

9) You do not have to disclose liability on financials, partners, or other financial lenders due to the fact that you are not obligated to pay back the loan and for you this maybe a major benefit why you want this structure for privacy and so it does not impact your personal financial statement.

10) You have less risk and you do not have a forced obligation for a balloon payment so if in the future… you lack money then you can easily decide to walk where with a recourse balloon payment loan with a bank or brokerage you would be forced to pay it off risking all your other personal assets.

When you, as a borrower, take out a large recourse loan with a financial brokerage or bank you put everything you own at risk if the collateral collapses.  Our lenders non-recourse loans are a huge benefit for you as you are able to enjoy all the benefits of a non-recourse loan while also offering you benefits of realizing upside appreciation if your collateral increases in value.

We are not legal or tax advisors.  All 10 of these benefits are at the direction of your legal and tax advisors.  You should always consult your legal and tax advisor for specific advice on any loan considered.

International portfolio loans and global stock loans and share loans are offered for our global clients in North America, Asia, Europe Share Financing, Middle East, Central America, South America and Africa. The above details on stock loans and security loans available are a general overview. Please refer to terms in Stock Lending Term Sheets  and  Stock Loan Closing documents for specific terms applicable to you.

THE PORTFOLIO LOAN LENDER YOU CAN TRUST

Our Specialty:

• Portfolio Loans Against Securities
• Providing you portfolio stock loans for large cap and small cap stocks.
• Closing your loan quickly and efficiently.
• Helping you mitigate your portfolio risk through diversification.
• Providing you with liquidity.
• Offering flexible loan packages tailored to your individual needs.
• Securing competitive interest rates.
• Providing you your personal account executive to walk you through the process.
• We speak to over 15 stock portfolio lenders on your behalf securing the best stock loans.
• We use private lenders which means you enjoy privacy and no releasing details of any loans you take.
• Never any upfront fees. You pay on success of receiving the stock loan just before disbursement of funds.

TCPI IJ  - Option 1

Margin loan with recourse

Loan Amount USD100m

• Loan Ltv : 30%
• Term : Annual rollover over, max , 36 months ( no early repayment allowed within annual loan term )
• USD Loan rate : 12% pa fixed

Upfront fees :

• origination fee 4%
• admin fee 1%
• custodian fee 0.5% pa on collateral value subject to min usd 50k pa (Both Based on loan drawn)

Conditions:

1)First 1 year loan interest payable upfront deductible from loan amount (non-refundable)

2) PG of ultimate beneficial owner of corporate borrower

Offer valid for 7 working days till 22/4

TCPI IJ  - Option 2

Margin loan with recourse

Loan Amount USD100m

• Loan Ltv : 30%
• Term : Annual rollover over, max , 36 months ( no early repayment allowed within annual loan term )
• USD Loan rate : 10% pa fixed

Upfront fees :

• origination fee 4%
• admin fee 1%
• custodian fee 0.5% pa on collateral value subject to min usd 50k pa (Both Based on loan drawn)

Conditions:

1)First 2 years loan interest payable upfront deductible from loan amount (non-refundable)

2) PG of ultimate beneficial owner of corporate borrower

Offer valid for 7 working days till 22/4

How Crypto Backed Loans Work

How Crypto Backed Loans Work

Some people are confused about what makes cryptocurrency valuable and what makes it efficient as a means of storing and transferring value. Cryptocurrencies are also sometimes known as “altcoins” — short for alternative coins. The most famous of all cryptocurrencies is Bitcoin, although there are many new contenders to the market, known as altcoins. The lenders do the complicated filing and processing for you, and can help support you on your way to success with competitively priced cryptocurrency lending and terms. Asset lending capital features highly competitive interest for cryptofinance based on the present prime rates. Plus, crypto lenders loans extend anywhere from 3 months to 10 years, which is an ideal amount of time for many individuals seeking a good amount of capital and a reasonable amount of time to make payments on their loans.

How Do Crypto Loans Work?

Sometimes referred to as crypto financing or cryptocurrency loans, these are short to mid-term loans and are available to help cryptocurrency holder and investors keep the cryptocurrency asset they own while having access to fast cash they need to make other hard asset investments or to pay off debt.

Our cryptocurrency loan amounts are dependent on the security, the liquidity, number of coins held, price, volatility, trading volume and additional criteria determined to secure, approve and fund the loan. We offer several options for interest payments including monthly and quarterly during the life of the loan. We keep the process easy as pie, once you fully repay the loan, your crypto or alternative coins are transferred back to you in full.

How Do I Qualify for Crypto Loans?

Any owner of a cryptocurrency wallet is eligible and can be approved for a loan. The size of the crypto loans can vary greatly depending on the borrower’s ability to handle the payments and structure of the loan. The loan process is quick, and turnaround times to money are usually within 48 hours of closing.

The Main Advantages of our Crypto Loans.

With cryptocurrency, it’s all about flexibility. Cryptocurrency lending gives the borrower the opportunity to walk away from the loan at any time without affecting the borrower’s credit score or liability. These types of loans are much more appealing than traditional loans due to no liability issues and the fact that these loans won’t harm your credit score. The cryptocurrency loans structure is set up where no collateral and no personal guarantee is required by the cryptocurrency loans lender.

What Can My Crypto Loans Be used For?

· Expand or fund your mining operation

· Start a business

· Pay off credit card debt

· Complete a home renovation project

· Purchase new property

· Purchase new boat

· Purchase new art

· Use to fund property development

· Upgrade your mining equipment

· Reinvest or trade

· Cover operational costs for your business

· Make a large purchase such as purchase property development

Pretty much anything you want to use the loan proceeds for

Basic Requirements for Crypto Loans

✓ Minimum loan amount of $250,000 USD to $500,000,000

✓ Your cryptocurrency must be free-trading free of restrictions or trading suspensions

✓ Private cryptocurrency that is not currently residing in a cryptocurrency wallet is not eligible

✓ Loans are available to all cryptocurrency holders worldwide regardless of country

✓ All loans are non-recourse with zero liability to the borrower

Crypto Loans Terms

✓ Loan to Value up to 65% depending on individual crypto coins held

✓ Interest Only terms with competitive rates with lock up period

✓ Terms 3 months to 10 years for Crypto finance

✓ Crytocurrency must be secure in a crypto wallet and not in a trading account.

As with many direct lenders, the only collateral is your cryptocurrency wallet with no background checks or personal liability. Lenders offer competitive loan-to-value ratios, based on market conditions, sector, cryptocurrency performance and future performance. Typical loan-to-value ratios can range from 45–65%.

Lenders offer competitive rates based on the current prime interest rate and loan terms 3 months to 10 years. Your privacy is important, so your transaction is always kept confidential with all personal information securely stored.

Crypto Loan Process

1. You need to Transfer crypto to your Crypto Wallet. Most crypto wallets will accepts the top cryptocurrencies as collateral. There are usually no fees for crypto deposits or withdrawals.

2. Apply to the crypto lender providing the Crypto coin held, the amount of coins you hold and also the loan amount required.

3. Loan approval normally takes 24 hour to have the term sheet issued.

4. Loans are normally in EUR, USD, CHF.

5. After signing the term sheet and returning to the lender the lender will request their lawyers to draw up the final loan contract.

6. The final loan contract is signed by the borrower and the lender.

7. The coins are then placed into a wallet held by the client, temporary custodian and the lender.

8. Disbursement of funds follows immediately thereafter.

Typical lending amounts are from USD250,000 upwards but the lenders standard lending size is USD500,000 all the way up to USD50m. There are many large Crypto Lending Platform lenders out there but the most secure way to obtain crypto financing is via private institutional lenders for high loans sizes, private transactions and more importantly fast access to loan funding.

Cash withdrawal options:

Bank wire withdrawal via SEPA and SWIFT. Available worldwide.

Credit card withdrawal to your MasterCard or VISA.

Transfer to your lawyers account for optimal security

cryptoloans crypto crypto loans cryptolending cryptobackedloans

Apr 11th, 2021

Universal Life Insurance vs. Whole Life: Which Is Right for High-Net-Worth Expats?

For high-net-worth expatriates navigating complex financial planning across borders, life insurance can be more than just a protective tool—it can be a strategic asset. Among the most debated options are  Universal Life Insurance (ULI) and Whole Life Insurance (WLI). While both offer lifelong coverage and cash value accumulation, they differ significantly in flexibility, investment potential, and cost structures.

This post explores the key differences, advantages, and considerations for choosing the right policy, especially if you are an expat with assets and dependents in multiple jurisdictions.

Understanding the Basics

What Is Whole Life Insurance?

Whole Life Insurance is a traditional policy that offers guaranteed death benefits, fixed premiums, and a cash value component that grows at a set rate over time. It’s a conservative, stable product suitable for those who prioritize predictability.

Key Features:

• Fixed premiums for the life of the policy
• Guaranteed cash value accumulation
• Dividends (in participating policies)
• No investment control for the policyholder

What Is Universal Life Insurance?

Flexible Universal Life Insurance offers more flexibility than its whole life counterpart. The policyholder can adjust premiums, death benefits, and even influence how the cash value is invested. This makes ULI a popular option for expats seeking adaptable solutions for wealth management and estate planning.

Key Features:

• Adjustable premiums and death benefits
• Investment-linked cash value growth
• Tax-deferred accumulation
• Option to increase or decrease coverage over time

Key Differences Between ULI and WLI for Expats

Flexibility and Customization

ULI allows expats to adjust their premiums and coverage based on evolving financial goals and tax positions in different countries. WLI, on the other hand, is rigid—once set, the terms cannot be modified without cancelling or purchasing a new policy.

Why it matters for expats: Income streams and tax obligations can vary across countries. ULI provides the flexibility needed to adapt without losing protection.

Investment Control and Growth Potential

ULI typically includes investment sub-accounts or index-linked options, offering higher growth potential, though with some risk. In contrast, WLI cash value grows steadily but conservatively.

For HNWIs looking to align insurance with broader wealth strategies, ULI offers the chance to participate in market growth or select tailored investment options.

Cost Structure and Transparency

ULI policies can start with lower premiums, but the cost of insurance (COI) may increase over time depending on age and risk factors. WLI has higher, fixed premiums, which ensures long-term predictability but lacks flexibility.

Tip: For younger expats or those with fluctuating income (e.g., entrepreneurs, investors), ULI may offer more manageable upfront costs with the potential to ramp up later.

Tax and Estate Planning Considerations

Tax Deferral and Cash Value

One of the biggest draws of  Universal Life Insurance for International Clients is its tax-deferred growth. Cash value can grow without immediate tax consequences, and loans taken against the policy are often tax-free.

WLI offers similar benefits, but lacks the customization ULI provides when aligning with international tax planning strategies.

Wealth Transfer and Legacy Planning

Both policies allow for efficient wealth transfer upon death. However, ULI often includes riders or features tailored for estate planning, such as second-to-die policies or premium financing options—essential tools for affluent expats with heirs in different countries.

ULI can also be structured within a trust or offshore entity for additional tax and confidentiality advantages.

Use Cases – Which Policy Works Best?

When to Choose Whole Life Insurance

• You seek guaranteed cash value and predictable premiums
• You’re risk-averse and prefer conservative asset growth
• You plan to hold the policy as a stable long-term asset with minimal changes

When to Choose Universal Life Insurance

• You want control over investment performance
• You need flexibility in premium payments and coverage
• You’re involved in international estate or tax planning
• You expect income volatility or major asset liquidity events

Case Study – British Entrepreneur in Singapore

Client Profile: A 45-year-old British expat running a fintech startup in Singapore, with investments in the UK, Malaysia, and the U.S.

Challenge: He wants a life insurance policy that supports estate planning, minimizes tax exposure, and offers cash access if needed.

Solution: A Premium Financed Universal Life Insurance was structured with premium financing and trust ownership. The policy allows him to defer income tax, grow his cash value in an S&P 500 index, and provide tax-free death benefits to heirs in three countries.

Final Thoughts – Tailoring Life Insurance for Expats

For high-net-worth individuals living abroad, managing assets across multiple countries presents unique challenges—especially when it comes to passing on wealth efficiently. Taxes, probate laws, and regulatory frameworks vary drastically between jurisdictions, making proactive planning essential. One of the most effective strategies to address these complexities is International Estate Planning with Life Insurance. By using a universal life insurance policy, expats can ensure their beneficiaries receive tax-efficient payouts, bypass probate in certain countries, and maintain privacy through structured trust arrangements. These policies can also be customized to include riders for business succession, critical illness, or second-to-die coverage—providing an all-in-one solution tailored to global lifestyles and inter-generational wealth transfer. At Platinum Global Bridging Finance, we specialize in structuring bespoke life insurance solutions designed specifically for international clients facing cross-border estate complexities.

High-net-worth expats, choosing between Whole Life and Universal Life Insurance isn’t about which product is better—it’s about what suits your unique circumstances, goals, and jurisdictions.

Universal Life Insurance stands out for its adaptability, making it ideal for those who require financial agility, cross-border wealth planning, and access to tax-efficient capital.

For a personalized consultation or to explore premium-financed ULI structures, contact Platinum Global Bridging Finance.

Platinum Global Bridging Finance is a distinguished high-net-worth finance broker. We specialize in providing tailored financial solutions, including Property Bridging Finance, Development Finance, Single Stock Loans, Margin Stock Loan, Crypto Finance, Crypto Loans and Commercial Property Finance tailored to meet the diverse needs of our clientele seeking robust financial lending solutions.

Other Financing Options We Offer

International Bridging Loans | Expat Mortgages | MUFB Mortgages | Portfolio Mortgages | United States Mortgages | Universal Life Insurance | Expat Life Insurance | Expat Health Insurance | Crypto Financing | Securities Backed Lending | Pre IPO Loans | OTC Stock Loans | Aircraft Financing | Bad Credit Bridging Loans | Share Portfolio Loans | 144 Restricted Stock Loans

Some bridging finance lenders have chosen to exit the UK bridging loan arena completely whilst others have chosen to drastically reduce their criteria in the hope the coronavirus world event gradually disappears in the coming weeks.

Bridging lending criteria are being tightened In recent times most bridging finance lenders have been prepared to lend up to 75% of the value of a bridge to exit property development finance required by property developers. There were even a couple of family offices lending up to 80%of the required loan if the risk to their lending profile was not deemed too risk averse and the development was located in a favourable area. Areas such as London or the surrounding counties have been viewed favourably in the past. Fewer lenders presently are prepared to do so now as fears grow of falling property prices and a stalling market.

Increased Lending Margins Whilst landlords were expecting a lower Bank of England base rate will lead to lower mortgage rates this is not always proving to be the case. Bank and non bank lenders concerned about the increased risk of tenants defaulting on rents and falling property prices may well choose to widen their margins and increase the cost of borrowing. Some bank lenders have increased rates despite the 0.65% fall in base rate where margins as a result have increased by about 1%. Some non bank lenders have pulled from the market altogether to keep their powder dry for what could be a subsequent and swift drop in the residential and commercial sectors of the UK property market.

Comment Gerard Ward, Platinum Global Bridging Finances chief executive, said: “The competitive and attractive bridging finance and commercial finance market appears to be going into a potential slump depending on how long the impact of the coronavirus affects the market. “Landlords are finding that their borrowing options have reduced as lenders respond to this new record low base rate environment and fears of falling house prices by withdrawing entire product ranges. They were hoping for an interest rate cut so this must have come as a great shock. “We have clients mid-way through a bridging loan application only to find the lender has informed us the bridging loan product is withdrawn before they can reach completion and access the release of funds. Another case our client was expecting 100% lending on a property development loan only to be told they can only receive 80% days before completing and drawing down funds on the loan. They luckily had spare funds in reserve so the case was able to complete as planned. “We can well imagine the difficulties lenders are facing when it comes to valuing properties and properly pricing risk as some valuers are not allowed out of their homes let alone onto

the sites to perform the much needed valuation. We are hoping they will continue to support property developers, especially those who were moving successfully through the bridging, development or commercial application process and would otherwise have expected to be shortly in receipt of a loan. “We are also urging large banks and non bank lenders to stand by the announcement made by the UK Government to provide and ensure payment holidays to landlords are adhered to. They will also need to ensure the payment of wages for people employed not allowed into work so they can pay their mortgages. The UK property market is still in need of new houses and has a drastic shortage of properties of existing housing stock to match the growth in population. This is a time when all facets of the UK property market need help from the UK Government”

We are still assessing the outcome on the mezzanine finance arena and senior loans lending market though its pretty early to make assumptions for sure. Only time will tell how the current financial markets respond to the virus and if they will return to previous stock market levels.