While it may seem unusual that a high-net-worth individual (HNWI) may struggle to access mainstream finance, this is a common problem. Although an HNWI may appear to be an ideal candidate on paper, the reality is that many struggle to access a mortgage simply because they cannot prove evidence of a regular income to cover their mortgage repayments. Therefore, it is advisable to appoint an experienced mortgage broker who will take a creative approach to structure loans to help you achieve your financial goals. largemortgageloans.com works with niche banks that are willing to see past standardised criteria.
Our client is an HNWI with a sophisticated financial profile. The client was in a strong financial position, holding significant liquid assets and cash savings. A recent property sale also generated an additional cash deposit for the client to use to secure his new £2.5m London property purchase. However, our client recently started a new business and could not prove that his income was high enough to cover the necessary monthly mortgage repayments. After struggling to find a lender, our client contacted us to help him find a bespoke solution to suit his personal circumstances.
Associate Director Paul Fredericks identified that the client’s assets were valued surplus of £3 million, enabling him to be treated by lenders as a high-net-worth individual. Paul worked with a private bank, preparing a proposal that described our client’s underlying assets, which he used as leverage to negotiate preferable loan terms on a pre-funded mortgage.
The lender agreed to set up a dedicated account to fund the mortgage payments over the next five years as an alternative to requiring standard monthly repayments. This solution provided our client with increased flexibility and improved cashflow. Our client was thrilled to have additional time without regular mortgage payments, enabling him to reinvest and grow his business and thus generate a higher monthly income to put him in a stronger position going forward.
Are you a high-net-wealth individual struggling to secure a mortgage? largemortgageloans.com are specialists in finding creative solutions for high-net-worth individuals. We provide multifaceted solutions and can structure finance in ways that work to suit your personal circumstances.