High Net Worth Mortgages
Many brokers don’t understand the complexities that a high net worth individual may face when searching for a high net worth mortgage so they are unable to find products or lenders who can handle their circumstances flexibility.
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Simmonds Mortgage Services, mortgages for high net worth individuals
At Simmonds Mortgage Services, we have experience helping those with more money than average to find the perfect mortgage product for them.
What is a high net worth mortgage?
A high net worth mortgage is specifically designed to meet the needs of high net worth individuals with multiple complex income streams, which are often not well catered for on standard mortgage applications.
Who is classed as a high net worth individual (HNW)?
A high net worth individual is one who has an income in excess of £300,000 per year or liquid assets of more than £3,000,000.
How do HNW mortgages work?
A high net worth mortgage provides a larger than average loan amount for people with significant wealth.
Arranging mortgages for high net worth clients
Multi millions pound mortgages can be challenging to secure from high street lenders who have inflexible affordability criteria that don’t consider the complex income arrangements of high net worth borrowers. Mortgage brokers who have access to private banks or other private lenders are more likely to find bespoke lending solutions for high net worth clients where cash flow isn’t as straightforward as a monthly salary.
High net worth mortgage eligibility
High-value mortgages are usually reserved for those who have a high income but it may also be possible to find a bespoke mortgage arrangement backed by your assets. If you are asset rich, some mortgage providers will offer large mortgage loans. These mortgage solutions, costs and interest rates are tailored to your personal circumstances rather than being a standard checklist.
What other income and assets can be used for financial assessments on multi-million pound mortgages?
Long-Term Incentive Plans (LTIPs)
Dividends from stocks and shares
Bonuses and commission payments
Foreign currency earnings
Other net assets such as property, shares, fine art and jewellery.
Why do high net worth individuals require specialist lenders?
If you have significant wealth, a complex financial situation and you are looking for a large loan for your property purchase, it's likely you'll need to deal with specialist lenders who are used to creating tailored offers. Private banks will often be able to provide higher multiples and exclusive rates for large mortgages than you would find with an off-the-shelf product.
Can you work with a high net worth foreign national?
Yes, we are used to looking after the needs of high net worth individuals who want to deal in foreign currency for their high-value mortgage. Foreign nationals and non-uk residents often buy property in the UK using high net worth mortgages.
Can you source ultra-high networth mortgages?
Yes, ultra-high net worth individuals have over £30m in net worth. Our experienced mortgage brokers can act alongside a private bank to negotiate rates for ultra-high net worth clients who are looking for a large mortgage loan.
What is a high net worth exemption for mortgages?
High net worth exemptions exist for high net worth customers which allows them to be assessed by mortgage lenders for a mortgage on different criteria than mainstream borrowers. Much of an individual's wealth may be tied up in assets such as commercial property, a residential buy-to-let property portfolio or other assets excluding cash. Personal income may form a smaller part of an individual's overall wealth so a private bank will want to use individually negotiated criteria for assessing affordability and risk.
Is there such a thing as high networth interest-only mortgages?
Yes, there are private banks that will offer a high net worth interest-only mortgage to their clients looking to borrow a significant amount to fund a property purchase.
If I have a low income or poor credit, can I still get a large loan?
High net worth mortgages may be available to individuals with a lower income as long as they have sufficient other net assets to make the mortgage repayments. Complex ownership structures for businesses may mean that you have a smaller regular income each month but receive a large lump sum periodically, so this can be taken into consideration. If you have a poor credit rating, this may limit your ability to get a loan or it may increase the overall cost with a higher-than-average interest rate.
We can find the right HWN mortgage for you. Get in touch with us today
Simmonds Mortgage Services can help you identify the right lender for your financial situation if you are looking for a bigger mortgage than your high street lender will provide. Give us a call for a no obligation chat on 01184 693037 and speak to our specialist mortgage brokers who can give expert advice on high net worth mortgages.