High Net Worth Mortgages
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What is classed as High Net Worth?
Mortgage borrowing of between £500,000 and £25 million is considered to be a High Net Worth mortgage. For this level of borrowing, you will generally need to seek out private finance providers or more niche lenders, as high street lenders are not commonly able to offer competitive High Net Worth mortgage products.
What is the LTV % on a High Net Worth mortgage?
The Loan to Value (LTV) rate on High Net Worth mortgages is usually lower, given the high loan amount, however it is possible to secure a 95% Loan to Value rate with some lenders. As with standard mortgage applications, however, the more deposit you are able to offer, the better chance you have of securing a mortgage.
As a high earner, you can usually expect to borrow between four and a half and six times your annual income. The good news is, even though the deposit requirement may be high, it’s not usually expected to be provided in the form of an upfront cash deposit, with many lenders considering a range of potential deposit sources, from inheritance to investment portfolios.
Why would I need a High Net Worth mortgage?
High Net Worth Mortgages can be used to purchase high value properties on a standard residential mortgage or to build a Buy to Let property portfolio, although you may also wish to consider Asset Finance for commercial property purchases.
Many High Net Worth individuals choose to use this type of large mortgage when they could otherwise purchase the property outright, as it frees up liquidity for future investment potential. It also allows them to consider a wide range of asset protection options that are often offered alongside High Net Worth Mortgages.
Are there low-income, High Net Worth mortgages?
It’s not generally possible to borrow the level of loan necessary for a High Net Worth Mortgage unless you meet the lender’s minimum income criteria for the property in question. Whilst this will vary based on the price of the property, you will usually need to be earning upwards of £300,000, or have assets equal to that value, to be considered as High Net Worth mortgage applicants.
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Are the interest rates on High Net Worth mortgage rates the same as standard residential mortgages?
Whilst high street lenders may not be able to offer competitive rates for High Net Worth mortgages, it is possible to find competitive interest rates on the market. It’s important to approach a Mortgage Broker who specialises in this type of mortgage product, like ourselves, to access those lenders who will offer more desirable rates.
There are Interest-only options available for High Net Worth mortgages, although the rates are less competitive when opting for this repayment type on your mortgage.
How will my income / wealth be assessed?
Much like any other applicant, you will be assessed based on your affordability and credit rating, as lenders will need to be certain that you can afford the repayments on your mortgage in the long term. It’s possible for a poor credit score to impact your application, however, it’s also possible to find lenders who are willing to overlook adverse credit in High Net Worth individuals.
As your income can be more complex than the standard applicant, for example, you may have multiple streams of income, it’s important to find a lender who will make best use of your whole income.
Some lenders will also be willing to consider your assets as a part of your overall income, which would provide you access to higher borrowing. We can help you to source the type of lender who will look at your income most favourably for your individual financial circumstances, with some even willing to consider creating a bespoke mortgage product based on your individual needs and financial portfolio.
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How can Total Home Loans help?
Here at Total Home Loans, we’ve helped many High Net Worth clients to access those niche lenders most suited to their financial situation. Whether you’re growing your investment portfolio or simply looking to purchase a high value residential home, we can ensure the product that you choose offers the most benefit to your long term finances.
Regardless of how complex your income or asset structure is, our expert brokers can ensure that we put you in touch with a specialist lender who can make best use of that income, creating bespoke mortgage products, where necessary. We’re here to save you time and stress, as well as look after your money, so we’ll manage the admin and communications aspect of your application, keeping you updated as and when we need to.
Your home may be repossessed if you do not keep up repayments on your mortgage.