Five-year HNW finance narrows the gap between bridging and mortgages

A broader middle ground for property finance

Bridging Loan Directory reports that StreamBank has launched a High Net Worth Structured Finance proposition offering loans from £350,000 to £5 million over terms of 12 to 60 months. Positioned between traditional bridging finance and conventional mortgages, the facility is intended for borrowers whose repayment strategies may extend beyond a conventional 12-month bridge.

The significance is not simply the longer term. The launch reflects a recurring financing challenge: a borrower can have substantial assets and a credible route to repayment without having immediate liquidity. Higher-value property sales, business disposals, share realisations and development completions can all involve uncertain completion dates. A facility structured around an unrealistic deadline may create refinancing pressure even where the underlying proposition remains sound.

Implications for developers and investors

For developers, the inclusion of development completion as a potential repayment strategy is particularly relevant. A project may reach completion within its original programme while the subsequent sale, refinancing or release of capital takes longer. Longer-duration structured finance could provide additional time between delivery and realisation, reducing dependence on achieving a transaction within a fixed short-term window.

That does not remove the importance of programme discipline or a clearly evidenced exit. Instead, it places greater emphasis on matching the finance term to the realistic sequence of completion, marketing and disposal. Developers considering this type of capital will still need to demonstrate why the proposed repayment event is credible and how the facility will be managed if timings move.

For property investors, the proposition may be relevant where a purchase, refinancing or evidenced capital-raising requirement is supported by residential property, but repayment depends on a comparatively complex asset realisation. According to Bridging Loan Directory, the product is available against residential property in England, Wales and Scotland.

Eligibility and leverage remain central

The longer term should not be interpreted as a relaxation of underwriting. StreamBank requires at least one borrower independently to have annual net income of £300,000 or more, or net assets of at least £3 million excluding their primary residence. The maximum loan-to-value is 65%, with lower limits applying to larger facilities, while loans above £3 million require additional approval.

These parameters indicate that the proposition is designed for a defined borrower profile rather than as a general replacement for bridging. Key features reported by Bridging Loan Directory include:

• Loan sizes from £350,000 to £5 million.

• Terms from 12 to 60 months.

• A maximum loan-to-value of 65%, subject to lower limits for larger facilities.

• Fully rolled-up, part-serviced and fully serviced interest options.

• Use for purchases, refinancing and evidenced capital raising.

The range of interest-servicing structures is also important. Borrowers with assets but limited current liquidity may prioritise rolled-up interest, while those with available income may prefer part-serviced or fully serviced arrangements. The appropriate structure will depend on cash flow, security, leverage and the timing of the proposed repayment event.

What this means for the financing market

The launch suggests that specialist lenders are continuing to differentiate through term flexibility and individual underwriting rather than loan size alone. It also highlights a growing distinction between a weak exit and an exit that is credible but takes longer to execute. That distinction can materially affect how a case should be presented to lenders.

Longer terms can reduce the risk of an early maturity arriving before an asset sale or other realisation completes. However, they can also increase the period over which interest accrues and expose the borrower to a longer window of execution risk. The availability of up to five years therefore makes detailed cash-flow analysis, contingency planning and evidence supporting the exit strategy more important, not less.

Structuring the case

For borrowers and advisers, the central task is to align the facility with the commercial timetable. That means establishing the likely disposal process, identifying dependencies, testing the impact of delays and selecting an interest structure that remains workable throughout the term.

StreamBank’s launch adds another potential route for qualifying HNW borrowers whose needs fall between short-term bridging and conventional mortgage finance. Its wider relevance is the principle behind it: finance should be structured around a realistic repayment route, while underwriting remains focused on evidence, leverage and execution.