High Networth Mortgages

High net worth individuals should have very few issues in accessing a loan from high net worth mortgage lenders. However, many high net worth individuals have complex income streams that many high street lenders cannot factor into their risk calculation. High net worth individuals are also often looking for a tailored approach to the mortgages that they can access, that cannot always be provided via a high street lender.

Many high street lenders offer “off-the-shelf” mortgages, which may be suited to properties under a certain value. Higher value properties and mortgages will require a more bespoke approach to ensure that the mortgage is of the value required and works for all parties.

As a high net worth individual, it is more likely that you have a complex financial situation and are therefore likely to require a more bespoke mortgage arrangement. High net worth mortgages obviously need to suit you as an applicant but in spite of your income, you still need to satisfy the lender that you can fully repay the loan. High net worth mortgages often need greater flexibility as they are a significant financial transaction, requiring extensive proof of ability to repay.

What is a High Net Worth mortgage and who is considered a High Net Worth Individual?

A high net worth individual is someone who has a personal income of more than £300,000 or has liquid assets of more than £3,000,000.

If this reflects your personal situation, the private lenders that we partner with are legally able to apply less stringent regulations towards the income streams of high net worth customers, something which is not applicable to high street lenders.  This provides much more flexibility, as it is easier to prove that you have the necessary means in place to pay off the loan in full. They may also consider more preferential rates as your financial situation is likely to be of interest. You are a highly desirable client and so as long as you can accurately prove your net worth and income and make a comprehensive application, you are likely able to get a mortgage deal that works for you.

As a high net worth mortgage, dealing with significant financial amounts, it is often the case that private banks and personal finance outlets are likely to be a better fit for this type of mortgage.

Why would a High Net Worth individual use a mortgage?

When trying to access a mortgage from a high street lender, it is often focused solely on income alone. As a high-net-worth individual, you may not have a ‘regular’ income or have adequate cash flow. Your worth may be tied into assets or be based upon your investments, shares or bonds. It is therefore more difficult to ‘prove’ your income and show that you have the means to repay the loan.

Bespoke Money works with high net worth clients from a range of different scenarios and jurisdictions. We understand, therefore, that you are likely to be looking for support in obtaining the mortgage that you need and tying all your assets together. We work for our clients, using a bespoke approach to ensure that we obtain the best mortgage for your needs.

What is the cost of a High-Net-Worth Mortgage?

These types of mortgages are very much ‘bespoke’, meaning each product and solution we secure for our clients are unique and individually negotiated. However, we can separate the institutions that we will approach on your behalf to give you an idea of how much it will cost you to secure a High-Net-Worth mortgage:

• Traditional Lender – if the loan is sub £3 million, we may be able to approach a more traditional lender, these types of lenders can provide interest rates at sub 1.5%
• Private Bank (with assets under management): For a larger loan with a more complex background, we will approach a private bank. If you have the flexibility to bring assets under management, we may be able to negotiate rates between 1.5%-2.5% plus cost of funds.
• Private Bank (no assets under management): You can expect rates at 2.5%-3.5% plus cost of funds.

How do we arrange your High Net Worth Mortgage and what’s different from the traditional route?

The process of arranging a High-Net-Worth mortgage for a High Net Worth Individual is relatively similar to your traditional lenders. You will be required to have a fee-free conversation with one of our industry leading brokers who will discuss your current situation and plans. This will include details on worldwide income, worldwide assets and liabilities.

What Loan to Value (LTV) can I secure with a High Net Worth Mortgage?

This is on a case by case basis, for the right client with the right profile we can secure up to 100%.

Next steps to securing your High-Net-Worth Mortgage:

Get in touch with one of our highly experienced brokers today. These initial conversations are completely free of charge.