High-Net-Worth mortgages

How much would a £1 million mortgage cost?

If you're looking to borrow £1,000,000 over 30 years with an interest rate of 3.85%, that could cost you £3,208.33 per month on an interest-only mortgage. This rises to £4,688.08 per month on full capital repayment.

Million-pound mortgages & million-pound calculator

High-net-worth mortgages are designed for individuals with substantial financial assets.

Private banks are used to issuing mortgages to asset-rich and cash-poor clients who struggle to get mortgages through standard banks and building societies.

The ‘high-net-worth waiver’ was introduced as a result of the Financial Conduct Authorities Mortgage Market Review. This waiver allows high-net-worth clients—those with an annual net income of at least £300,000 or net assets of £3 million—to be assessed differently from mainstream borrowers.

Here’s a breakdown of key aspects of high-net-worth mortgages:

Larger Mortgage Loan Amounts

High-net-worth mortgages often exceed standard lending limits, catering to purchasing luxury properties and £1million+ homes.
They can offer mortgages beyond traditional conforming loan limits issued by the high street banks. This includes mortgages for those with smaller deposits or clients releasing equity from their homes.

Flexible Underwriting Criteria

Income Sources: HNWIs often have complex income streams, including investments, business profits, and other non-traditional sources. Lenders may consider these rather than just standard salary-based criteria.
Asset-Based Lending: Some high-net-worth mortgages are asset-based, meaning they can be secured against financial assets (stocks, bonds, investments) rather than just income, making the qualification process more flexible.
Liquidity Consideration: Lenders often focus on the individual's liquid assets and overall wealth portfolio rather than just monthly cash flow, which is common in conventional mortgages.

More Generous Mortgage Terms

Interest Rates: Depending on the client’s financial profile and relationship with the lender, high-net-worth mortgages may offer more competitive interest rates.
Loan Structure: To accommodate HNWIs' financial planning and wealth management strategies, lenders may offer flexible terms, such as interest-only loans, variable-rate mortgages, or hybrids.

Private Banking Relationship

Many HNWIs receive high-net-worth mortgages through private banking services, often providing more personalized and discreet service.
Lenders may offer bundled services, such as wealth management, tax advice, and concierge services, to enhance the overall relationship beyond the mortgage.

Cross-Collateralisation

Some lenders allow cross-collateralisation, in which borrowers use other assets (such as an investment portfolio) as additional collateral to secure more favourable terms or higher borrowing limits.

Foreign National and Expats

High-net-worth mortgages often cater to foreign nationals or expatriates who wish to buy luxury property in another country. Still, they may not have the conventional credit history or income documentation in that country.

7. Tailored Mortgage Repayment Options

High-net-worth clients often have access to more varied repayment structures, such as balloon payments or bullet repayments, where a large portion of the loan is repaid at the end of the term. Or when bonuses are paid, or other assets are sold.
The loans might also offer more flexible repayment options, enabling clients to pay down or off the mortgage without penalties.

Key Takeaways:

Who is it for?: Individuals with substantial assets, often those with an annual net income of at least £300,000 or net assets of £3 million.
Loan size: Typically for loans well above standard limits.
Flexibility: Tailored to non-traditional income streams and asset-based lending.
Exclusive services: These are often provided through private banking with additional financial advisory benefits.

HNW mortgages offer a high level of flexibility, allowing borrowers to align their mortgage decisions with their broader financial and investment strategies.

Call Trinity Financial on 020 7016 0790 to secure a high-net-worth or high-value mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.