It is safe to say that the worldwide mortgage market covers a variety of different scenarios, different clientele and different financial situations. While most “off the shelf” mass market mortgage products offer enough variation for traditional markets, this is not always the case with high net worth mortgages and HNW individuals. Complex financial situations may require a bespoke mortgage arrangement to suit all parties. In general, there is often a greater need for flexibility, visibility and access to significant finance.
What is a high net worth?
The definition of high net worth as outlined by the Financial Conduct Authority (FCA) is a customer with earnings no less than £300,000 pa or net assets no less than £3 million. Assets can include equity in residential property.
If an individual meets these criteria, lenders are permitted to loosen some rules (for example on affordability). This can result in a much more tailored and personalised mortgage product being offered.
Can I use foreign currency earning towards a high net worth mortgage?
In short, yes. Different lenders have different criteria on what currencies can be used and the origin of the money.
What loan to value (LTV) can I get on an HNW mortgage?
It will depend on several factors. Some of our clients have been able to secure a 95% LTV mortgage on multi-million-pound properties due to their income profile and future earnings prospects. High value lenders will often look at the client profile and other factors in determining how much they will borrow and how the mortgage finance will be structured.
With a high loan to value most lenders where mortgage borrowing is in excess of £1 million will often want to see a repayment plan in the first 5 years to lower the LTV.
Mortgages for people with large assets but little income.
It is possible to arrange mortgages for individuals with little or low income (or insufficient provable income according to the rules surrounding affordability). This is possible if we can show that the client owns other assets which could be invested to create income, repay the loan or to give background support for the lender to be comfortable with the credit risk.
Other mechanisms for example pre-paying interest, releasing equity from the property to pay for the interest cover or placing assets with the bank as additional security can all be used to create the correct mortgage solution for the client.
How do we arrange high net worth mortgages?
The high net worth mortgage market does not have the breath of the mass market but the criteria is still straightforward. Before a mortgage can be arranged the applicant would need to confirm their income, assets and overall financial situation. As we touched on the above, bespoke situations require bespoke solutions, which is where TRANSPARENT Mortgage Services can offer valued assistance and guidance.
Our team of industry experts have built relationships with and array of different mortgage providers across the board. We have access to in-depth date, flexibility when arranging mortgages and a reputation which opens doors for us and our clients. We have a lending panel which is unrestricted, allowing us to cater for all nationalities, political status and even the most complicated of financial situations. We can unpick troubled elements, refinance and put them back together on a firmer footing. We can also secure the use of a variety of different assets as collateral against high net worth mortgages.
Million pound mortgages
There is no doubt that there are more million pound mortgages today than ever before in tandem with a jump in the number of HNWIs. As the cost of UK property, especially London houses, continues to rise we will inevitably see even more multi-million pound mortgages in years to come.
At TRANSPARENT Mortgage Services, we have a global network of more than 200 finance providers include well-known High Street names, private investors, challenger bank , small building societies, boutique lenders and specialist private banks which all have an appetite for larger and more complex mortgages.
The options we can provide you are:
- Bespoke lending solutions from £1 million
- Large mortgage loans up to 95% LTV (Loan To Value)
- Uncomplicated approach to income and wealth
- Large loan interest only mortgage options
- Lombard lending from £2 million
- Mortgages for residential and investment properties
- Mortgage finance for landed estates
- Borrowing into retirement options (including interest only)
- Options for short term finance (bridging), buy to let, commercial and development.
- Mortgage solutions for complex income arrangements e.g. onshore and offshore trusts and property held in offshore companies
- Solutions for HNW & UHNW individuals with no assets undermanagement requirement
- Offshore solutions for UK expats, non-domiciled UK residents, UK residents earning in a foreign currency and foreign nationals
- Independent service & expert advice.
We specialise in solutions to complex scenarios, so give us a call today for a no obligation discussion about your specific situation.