Cash-Out Financing for UHNWI Clients

Market Context

This opportunity is exclusively focused on Spain. Cash-Out mortgage financing on prime residential assets is virtually absent from the standard offering of the Spanish banking sector. This gap leaves a meaningful service need uncovered for UHNWI clients holding significant unencumbered real estate in Spain — particularly in the Balearic Islands — who wish to release liquidity from their property without divesting investment portfolios.
At Financial North we intermediate this type of transaction on a recurring basis, thanks to a relationship of more than 16 years with a lending institution operating in Spain that is willing to structure these operations under very specific criteria. This execution capability allows us to put forward a direct line of cooperation with the private banking arm.

The Proposal
The operation enables a client holding an unencumbered prime property in Spain to obtain mortgage financing for unrestricted use (Cash-Out), keeping invested wealth fully intact. In all cases, the Spanish lending institution requires a partial pledge of AUM as additional collateral. Critically, these pledged AUM are retained directly from the mortgage disbursement and deposited with the lending institution itself — they are never requested as a fresh cash transfer from the introducing private bank. The private bank's existing AUM are not touched, not moved, and not pledged at any stage of the transaction.
This mechanism generates two value drivers for the private bank:

• Net new AUM at the private bank: the net Cash-Out proceeds (mortgage amount minus the retention pledged with the lending institution) become available to be placed with the introducing private bank as new AUM. The client's pre-existing AUM with the bank are neither moved nor pledged.

• Deeper UHNWI client engagement: the transaction reinforces the relationship by addressing a genuine need that the standard market does not cover.

Deal Architecture and Pre-Qualification

Beyond pure credit brokerage, Financial North acts as the deal architect across every stage of the Cash-Out. Our remit on each transaction typically covers:

• Pre-qualification of candidates against the lending institution's risk parameters before any formal submission. This is the most important protective layer for the introducing private bank: candidates that would not clear the lending institution are flagged and reshaped — or declined internally — before they reach the bank, removing the risk of a refusal that could damage the client relationship.

• Coordination with an accredited Spanish valuation firm from our network of pre-approved providers that meet the lending institution's appraisal requirements.

• Direct interlocution with the lending institution's risk and credit teams throughout the analysis, presenting and defending the file consistently and avoiding the asymmetric information losses that typically arise when a complex international file is handed to a Spanish retail bank.

• Coordination with the notary, the Land Registry, and the client's own external legal and tax counsel — including, where applicable, the joint structuring of the notarial act for the mortgage.

• Active follow-through from mandate to drawdown, including post-closing monitoring of any conditions precedent.

This end-to-end coverage allows the private bank to maintain a clean and continuous position vis-à-vis the client throughout the process. Financial North absorbs the operational and structuring complexity of executing a Cash-Out in Spain, while the introducing private bank focuses on the client relationship and on the deployment of the released capital.

Every Cash-Out operation is structured individually. Mortgage terms and conditions — including loan amount, LTV, pricing, term and amortisation profile — are bespoke and negotiated on a case-by-case basis by Financial North with the lending institution, based on each client's specific profile and the underlying property. The figures shown in this reference case should therefore be read as illustrative of one specific transaction, not as a standard offer.

Eligibility Criteria

To optimise the approval rate and protect the client experience, it is worth sharing the lending institution's risk parameters upfront:

• Mandatory property requirements (hard floor): the Spanish property must have a minimum appraisal value of EUR 5 million (preference for EUR 10 million or above), and its title must be fully free of legal incidents — no pending litigation, no encumbrances, no unresolved registry, planning or licensing issues. These thresholds are non-negotiable.

• Client and structure fit: solid AUM balance with the private bank, supported by a strong and recurrent track record of net income after taxes over the last three years; prime location in Spain (preference for the Balearic Islands); clear and traceable asset structure; and a reasonable use of the Cash-Out proceeds.

• Does not fit: any detectable financial weakness or inconsistency in the client's profile, or use of the Cash-Out proceeds for purposes perceived as high-risk investments. In these scenarios the outcome is a firm no, with no middle ground.

Collaboration Model

Financial North acts as a real estate credit intermediary under Spanish Law 5/2019, structuring and managing the transaction with the lending institution end to end.