As our Jersey and international clients enjoy the unprecedented heat wave, a new form of 'hose ban' is gripping the high-value residency market with Dry Lending arrangements being no more than a 'mirage in the desert.'
Dry Lending is the provision of a mortgage facility, typically by a private bank to a high-value client, without the conditional migration of other assets (investment portfolios, bonds, etc.) or taking AUM.
Kirsty Doublard, Client Services Director of Hawk Lending Group says: "Clients seeking high value residential and commercial mortgages are becoming increasingly frustrated with the level of AUM required as a condition of a mortgage facility at a sensible rate....we continue to assist clients who may not have considered options that fall outside of the private banking network, or those who haven't considered alternative structures or debt providers. We are always happy to help."
After reaching its target of £80m lending for the year, SG Hambros have decided that it will no longer lend to borrowers without any assets for them to manage, signifying the pond shallowing further.