IT'S NOT ALWAYS ABOUT
THE EXTENSION

What clients are really using their property wealth for

By Chris Thompson, Head of Sales, Market Harborough Building Society

Ask most people why a homeowner wants to raise capital and they’ll probably mention home improvements.

And while that’s still a significant part of the market, it’s far from the whole story. Some of the most interesting conversations we’re seeing today have very little to do with the property itself.

Instead, they’re about helping family, supporting business ambitions, rebuilding savings or making the most of an opportunity that’s come along at the right time.

It’s also a topic receiving increasing attention across the industry. The FCA has highlighted the role housing wealth can play in helping consumers meet broader financial objectives and plan for later life. (1)

We’re seeing exactly that.

Here are three very different conversations that recently crossed my desk.

Helping family take the next step

A broker recently approached us with a client who wanted to help their daughter buy her first home.

The client had built up significant equity over the years but had never viewed it as something that could help family.

Then the right property came along.

It wasn’t a conversation about borrowing more money. It was a conversation about helping family at the right moment.

It’s probably not surprising. The “Bank of Mum and Dad” has moved from helpful boost to mainstream route onto the property ladder. Recent Savills data shows family assistance for first time buyers almost doubled to £9.6bn in 2024, from £5.3bn in 2014 –  with more than half of first-time buyers now receiving support. (2)

Rebuilding finances after a major project

Another client had recently spent a significant amount refurbishing their home.

The work was finished. The property looked great. The problem was they’d used a large chunk of their savings to get there.

They weren’t looking to fund another project. They wanted to restore some financial breathing space after investing heavily in their home.

That’s a very different conversation to “I need money for home improvements”.

Buying out a business partner

One case involved a self-employed client looking to buy out a business partner while also repaying several existing commitments.

On paper, it was a straightforward capital raising request.

There was a lot more to unpick here. The client’s income was split across salary, dividends and retained profits, while the capital raise formed just one part of a broader business plan.

The real conversation wasn’t about the loan amount. It was about how the funding fitted into the client’s longer-term plans and how everything fitted together.

Where understanding the case makes the difference

The clients’ circumstances were different and so were their goals. That meant the right solution looked different in each case too.

That’s why a one-size-fits-all approach rarely works.

The most successful outcomes come from taking the time to understand the client’s wider goals and how the proposed borrowing fits within them..

For brokers, that can uncover opportunities that might otherwise be missed. For lenders, it provides valuable context, particularly when assessing more complex applications.

That’s why understanding the purpose behind a case remains such an important part of our approach.

More than a mortgage conversation

Property wealth has always been one of the biggest assets many clients hold. What’s changing is how that wealth is being used.

Whether that’s helping family onto the property ladder, replenishing savings after a major project, repaying bridging finance, purchasing a holiday let, buying out a business partner or supporting wider investment plans, we’re seeing clients use the equity in their property in increasingly diverse ways.

And when those conversations become more complex, that’s where we can help. With award-winning service and an aligned team working on your case from enquiry to completion, you’ll have experienced decision-makers alongside you every step of the way. They take the time to understand the purpose behind every capital raising case and assess each application on its individual merits.

Got a case in mind? Give myself or your nearest BDM a call to discuss how we can support your client’s goals.

Sources

1 – What Mortgage 

2- Savills