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HIGH NET WORTH MORGAGES

Helping High Net Worth Individuals (HNWI) with their residential and investment mortgages.

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High Net Worth Mortgages

If you are a High Net Worth Individual (HNWI) looking to arrange finance, you may find that many lenders on the high street will not be able to help.

Either because you do not meet their lending criteria due to how your income is structured, your personal income cannot evidence through standard avenues or you need a large mortgage amount which is over the amount they are able to lend.

At London FS we work with specialist lenders and private banks primarily targeted at dealing with mortgages for High Net Worth clients and our experienced advisers can structure bespoke mortgage solutions based on your financial situation and requirements.

What are High Net Worth mortgages?

The requirement for a high net worth mortgage arises when a high net worth individual is looking to obtain a mortgage for either a residential property or investment commercial property.

Due to the way high net worth individuals structure their financial affairs, mortgages can be more complex - therefore a bespoke approach and expert mortgage advice when looking at a mortgage application is key .

Why take a High Net Worth mortgage?

Many of our clients who are classified as HNWI, take out high net worth mortgages for property purchases, even if financially, they are in a position to purchase outright.

It allows them to utilise on their liquidity for other possible property investment opportunities or investment into other asset classes. 

One of the main reasons our clients utilise a mortgage facility is they prefer to stay liquid. Tying up a large sum of money in one asset can be financially inefficient.

High street lenders tend to work with standard affordability ratios. For professionals such as Doctors, lawyers, consultants income ratios are stretched and we typically find these types of clients get larger loans.  

As bespoke mortgage brokers, we have access to private banks and specialist lenders who understand and can support high net worth mortgages.

We often see HNWI having little or irregular personal income from employment or self employment, and majority of the income is coming in from trusts, assets under management or other assets which generate an income, or even future income.

Foreign currency income can also cause issues with some mainstream lenders.

Most lenders on the high street will not understand the structures and as such will not accept mortgage applications where the lending is deemed to be complex.

For many of our clients, asset protection is also crucial. London FS mortgage brokers will have a wealth of experience with this and can discuss the options that are best suited to your situation

Asset-based High Net Worth mortgages

If you are a landlord with a large portfolio looking to release capital in order to fund new purchases, your portfolio as a whole can be used for landlord refinancing purposes.

One asset-based mortgage can be considered for the whole portfolio.

This will come down to lender’s affordability assessment and the strength of the assets involved as security against any proposed lending.

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Source and Proof of Deposit

 

Depending on the amount of deposit required, especially for higher value purchases, the deposit funds may not be in a traditional savings account. The funds may be being drawn from a variety of sources:

  • Sale of a UK property
  • Sale of a property overseas
  • Cash funds from investment portfolio
  • Inherited or trust monies
  • Family gift
  • Funds from sale of a business
  • Sale of stocks 

Whichever the source, a mortgage lender would require documentary proof of where these funds came from in order to satisfy its internal and regulatory money laundering requirements.

High Net Worth Buy To Let Mortgages

Lenders tend generally to be more relaxed when looking at buy to let mortgage applicants in terms of criteria such as an individual’s income stream as the focus really is on the assets available for security and the rental generated can be used for the mortgage payments.

Most lenders will want to see evidence of some sort of regular income however there are some who will accept no minimum income on a buy to let mortgage.

If you already have a large property investment portfolio, you could use this portfolio to raise finance for a residential property purchase for use as your main residence.

High Net Worth mortgage rates

For high net worth individuals with complex income streams, we find that flexible mortgage deals can be a higher priority than low mortgage interest rates.

High street lenders will advertise low exclusive rates and deals, however are strict in terms of affordability and income sources.

High net worth mortgages offer a more flexible way of obtaining property finance, lending on an interest only basis and lending against net assets in the back ground, especially useful when looking at a large mortgage.

Rates are based on several factors - loan size, financial situation, property type (residential or commercial property) and importantly overall client profile. 

As with standard mortgages, lenders will want to know and understand your credit profile (but on many occasions the lending decision is based on manual underwriting):

  • Credit history - your credit score will play a part, but they want want to see your overall credit position
  • Details of other debt and is there any debt secured on assets

Our mortgage consultants provide a high quality service and will be able to identify which option is the best way forward, based on your needs and requirements

Why use London FS?

Searching for lending for high net worth individuals in the mortgage market yourself, can be time-consuming and with investments, speed is often of the essence.

Our mortgage brokers are efficient and manage any research, negotiations or paperwork on your behalf, saving you yet more time and hassle. They will be able to obtain the best deal for you and keep you updated throughout the whole process.

You will be allocated a consultant who will be your point of contact throughout the process.

They also make it their priority to keep ahead of any changes that may affect the terms of your mortgage. With access to hundreds of high net worth mortgage lenders across the UK, including London, they are in a prime position to find you the best mortgage.

Our High net worth mortgage brokers are :

  • Whole of market with access to specialist high net worth mortgage lenders
  • Experienced in High Net Worth Mortgages
  • Qualified to provide bespoke mortgage advice to high net worth borrowers

Speak to a High Net Worth Mortgage Broker

If you want to speak to an expert mortgage broker for the right mortgage advice, please get on touch with us via email: enquiries@london-fs.com, give us a call on +44(0)208 427 5057 or use the contact form on our site.

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