High Net Worth Mortgages – how to achieve your plans
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High Net Worth Mortgages - how to achieve your plans
High Net Worth individuals can sometimes find it surprisingly difficult to find a mortgage. The fastest and simplest way to find a mortgage that works for your situation is for us to work on your behalf.
What is ‘High Net Worth’?
High Net Worth individuals are generally those with an annual income or net assets worth from £500,000 up to £25 million.
In financial services, ‘High Net Worth’ tends to indicate wealthy clients with complex financial situations.
Why would I need a High Net Worth Mortgage?
Often High Net Worth individuals will be unable to get a standard mortgage from a High Street lender. Many wealthy people’s income streams are irregular or not in the form of a salary. That means they sit outside the criteria for a standard mortgage.
Seeking a large mortgage loan can also be challenging. Many providers limit their lending to £1 million.
What is the maximum LTV% on a High Net-Worth Mortgage?
While there are many 95% mortgage deals on the market, these usually have a maximum property value of £600,000.
High value mortgages tend to have lower Loan to Value limits. On a million pound home, for example, the maximum Loan to Value is often 75% of the property cost – so you will need a cash deposit of 25% or £250,000.
Because High Net Worth individuals often have their wealth tied up in assets and investments, it can be difficult for them to unlock a cash deposit of this size. But private banks and specialist lenders may offer mortgages at higher LTVs or accept your assets as collateral.
Can I get a Residential and Commercial High Net Worth Mortgage?
If your cash flow and property plans are complex, it’s very important to talk to a mortgage broker. We have decades of experience in managing all kinds of mortgage requirements.
While residential High Net Worth mortgages are generally straightforward with the right lender, commercial mortgages often need a more bespoke approach.
With commercial mortgages you need to buy property through a company. There are also mortgages for ‘mixed use’ properties – to purchase a building that has both commercial and residential space.
We also work with many High Net Worth clients on Buy to Let mortgages, often purchasing property through a limited company.
How will my income / wealth be assessed?
Every lender assesses potential customers by exploring affordability – how much you can afford to repay each month. They will want to understand your income and other financial commitments.
But if you don’t receive a regular annual salary, or you are paid large bonuses, standard lenders may not view this as reliable income.
If this applies to you, we may need to work with a specialist lender to secure a suitable mortgage, especially for a high loan amount.
What are the main considerations with a High Net Worth mortgage?
With mortgages, it’s important to base your decisions on all the facts – not just interest rates. We make it easy to compare rates, fees, flexibility and criteria so that the mortgage is right for you.
We often work with private lenders to structure the mortgage to your personal circumstances. For example, you could make an annual mortgage payment, rather than pay on a monthly basis. Or, you might need a highly flexible mortgage where there are no penalties to reduce the loan with a large lump sum.
How can Mortgages by McAteer help?
We provide mortgage solutions to High Net Worth individuals who have gained their wealth in all kinds of ways. We have many years of experience in helping clients buy property when they may not fit a standard mortgage application.
We will explore your specific financial situation and property goals – whether you’re interested in buying residential or Buy to Let properties. Our relationships with lenders make it faster to identify the options to achieve your plans. Contact us today to explore how we can help you.
Mortgages by Mcateer Ltd is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority. We are registered in England.
Your property may be repossessed if you do not keep up with the repayments on your mortgage.
Commercial mortgages and some buy to let mortgages are not regulated by the Financial Conduct Authority.