Finding a mortgage through mainstream banks and lenders as a High Net Worth Individual can be somewhat difficult and time-consuming in the UK, with many “standard” mortgage products not being flexible or accessible. Magni Finance, a premium financial service can, however, help find High Net Worth Individuals bespoke mortgage products for their personal and financial needs.
We specialise in arranging mortgages for High Net Worth Individuals and international clients who do not fit the generic methodology of mainstream lenders. We have a large network of banks, private banks and specialist financial institutions who can assess every case on its own merits to deliver a tailored solution.
The definition of a High Net Worth Individual (HNWI), according to the UK’s Financial Conduct Authority (FCA), is someone who either earns more than £300,000 per annum or has net assets of more than £3,000,000.
If you meet these criteria, lenders may be able to offer the highest level of flexibility, as they will not need to follow the standard affordability rules associated with standard mortgage products.
HNWIs can access tailored mortgage products in the UK with Magni Finance. HNW rules permit some banks, often private banks, to factor in other liquid assets held.
For example, unencumbered property, investment portfolios, fine art and vintage cars which could be sold or invested to generate income.
This can then give the bank the comfort they need to deem the mortgage amount affordable.
High Net Worth mortgages are individually assessed. Therefore, there is no set answer as to how much they cost. High net worth clients, when using Magni Finance’s premium financial services, will each be considered on a unique basis and assessed on their own personal and financial circumstances. We specialise in arranging mortgages above £500,000. Whether the client lives in the UK or abroad, we will be able to find affordable and extremely flexible mortgages. We have helped many clients access mortgages with typically very low interest rates, so we will likely be able to help you. We will always go above and beyond to find the right mortgage for our clients, no matter the situation.
Clients with large assets yet little or no income can be rest assured that we may be able to find a bespoke mortgage product despite their lack of liquidity or cash reserves. Even clients with forms of income that are not usually considered by lenders will be considered by us. We have a combined experience of over 25 years as High Net Worth mortgage brokers in the UK.
Whichever means it takes to find clients the right HNW mortgage, we will do it. This may be through releasing property equity, providing assets to banks or perhaps through pre-paying interest methods. The method will be individually tailored to the client’s financial needs. Let us help find you the best method, and get the mortgage you need.
Many people in the UK use “standard” mortgage products, available from high street lenders, as they are their only means to invest in property. For High Net Worth Individuals, using a mortgage can be a more financially secure way of investing further money thereafter. While some individuals may be able to buy property outright, often doing so is not beneficial long-term.
Generally, tying a large amount of money into one asset is often not efficient. Therefore, using a High Net Worth mortgage can allow individuals to invest in property while protecting both their assets and other finances. Magni Finance can help high net-worth clients find and negotiate the best mortgage rates based on their needs. Moreover, many high net-worth individuals may find high-street banks and lenders unwilling to work with them. This is often because mainstream lenders will not have the expertise to work with complex or non-standard financial situations. Instead, such lenders tend to focus on “smaller” loans and a portfolio of properties that can then later be bought by many potential buyers in the UK.
Thus, high net-worth individuals will often use High Net Worth mortgages to invest in high-value, typically multi-million pound, properties. The lenders offering such mortgages are more willing to work with larger mortgage loans, and will likely offer more competitive and affordable rates and terms despite mainstream lenders not doing so.
High Net Worth mortgages are more complex in nature than “standard” mortgage products. Because of this, many lenders in the UK will not have the knowledge nor experience with finding high net worth clients the necessary terms. Yet, luckily Magni Finance is able to help find the best terms, through our trusted network of lenders, for our clients.
One of the main differences between High Net Worth mortgages and mainstream loans is that HNW mortgage brokers take into account two key factors: flexibility and durability.
High net worth clients tend to vary by case, and each have their own unique financial situation. That is why Magni Finance’s network will usually prioritise and take the time to understand an individual’s situation – differing greatly again to high-street banks and lenders who usually have a “one size fits all” policy.
Instead of putting large amounts of money outright into a property, clients in the UK and overseas can now qualify for mortgages in ways that might be considered “unconventional” to mainstream lenders. For example, through offshore structures, trusts or perhaps even high-value vehicles which would not be accepted as forms of collateral by mainstream lenders.
Therefore, high net worth individuals nowadays can protect their assets, find the best mortgage terms all while investing their money in high-value properties and building stronger financial foundations long-term.
Asset-based mortgages are the perfect example of how High Net Worth mortgages offer flexibility to clients. Many will opt for asset-based, or also commonly referred to as asset-backed, mortgages as they allow clients to protect their assets by not having to liquidate them. Secured against high-value assets, such as stocks, shares or other portfolios, asset-backed mortgages allow clients to access affordable and specialised mortgage products. In addition, high net worth individuals may even find they are eligible for larger loans through asset-backed mortgages if their assets are particularly high in value.
These are available through HNW mortgage brokers, like Magni Finance, who can help find bespoke mortgage solutions for clients in London, and even those living abroad.
Many high net worth individuals also often ask: “can I get a High Net Worth mortgage even for a second property?” The answer to this question is often, yes. Magni Finance may be able to help high net worth clients also secure mortgages for second high-value properties worth millions of pounds.
In order to qualify for a high net worth mortgage for a second home, clients will need to meet the general eligibility and affordability criteria set out for other high net worth mortgages. Whether it be a second property in the UK, or a holiday home overseas, high net worth clients are able to access competitive mortgage deals for second properties.
Both new and existing clients may also be eligible for high net worth mortgages for buy-to-let properties in the UK. Unlike holiday homes, or second properties in the UK that are considered seasonal, buy-to-let properties offer a source of income through rent. Therefore, eligibility criteria for such mortgages may be more relaxed.
Generally, HNW mortgages are offered to high net worth clients that earn an above average income. Those that may have a bad credit score, or experienced financial difficulties in the past, may still be able to access High Net Worth mortgages.
Luckily, there are HNW mortgage brokers that specialise in such cases. Even if you have bad credit, accessing a larger mortgage is still possible. To find out, get in touch.
Magni Finance also works with international clients to access HNW mortgage products in the UK. We truly operate on a case-by-case basis. No one size fits all when it comes to bespoke HNW mortgage products with Magni Finance.
Whether you’re a British expat or a foreign national living abroad, we have successfully arranged HNW mortgage products for clients around the globe. A minimum income of £300,000, alongside a deposit between 25% to 40%, is typically required depending on your individual circumstances.
There is no one size fits all with Magni Finance – we will help find the best mortgage terms for clients with various backgrounds and sources of income.
Fundamentally, the process to applying and getting a High Net Worth mortgage does not greatly differ to how “standard” mortgage applications work. Individuals that have either found rejection in the past from such lenders, or would like to find the best competitive mortgage rates can instead seek help from High Net Worth Mortgage Brokers.
Before applying for a High Net Worth mortgage, it is important for individuals to get all of the necessary documents together to ensure a fast and efficient application process. Preparing documents in advance, such as proof of ID, address and income alongside documents declaring assets and liabilities can help speed up the process.
Once you have all of the necessary documents, high net worth individuals can then find the right broker for their personal and financial needs. By using Magni Finance, clients will be able to access premium services and specialised solutions for some of the most complex financial circumstances.
Generally, mortgage applications for High Net Worth mortgages tend to work in a similar manner to mainstream mortgage applications. However, HNW mortgages with Magni Finance may be accessed through our trusted network of Private Banks. This process is relationship-based; we will speak with an individual Private Banker ourselves.
Clients, instead of being faced with an automatic “no” (as they likely would through mainstream applications), will undergo a manual review alongside a banker. We can get bespoke pricing via Private Banks. HNW mortgage terms, this way, while larger and more complex, will be able to offer High Net Worth clients typically tailored rates and more flexible terms.
For those looking for High Net Worth mortgages, Magni Finance will help. With over a decade of experience, a built network of lenders and several case studies showcasing our work, Magni Finance is in prime position to help find high net-worth clients the mortgage terms they require. As established high mortgage brokers, we’ll be able to help you throughout your journey and beyond. We even have access to other high-end services, such as solicitors, FX specialists, specialist tax advisors and much more.
Let us help you find the right mortgage term, all while protecting your assets and helping you invest for your or your family’s future.
Get in touch today to find out more about High Net Worth mortgages with Magni Finance. We offer premium financial advice for properties and mortgages.
