Whilst 100% property finance was much more commonplace prior to the financial crisis, this facility is now very difficult to secure – but by no means impossible. At Enness, we have secured many 100% loan to value (LTV) mortgages for our foreign national and non-resident clients by lending against their assets as opposed to their liquid wealth.
Many of my high net worth (HNW) clients are keen to secure 100% finance for a property purchase despite them having the means to put down a large deposit so as to maintain their liquidity. Similarly, many clients with large personal wealth seek 100% finance for a different reason; they are illiquid, as their wealth is invested in stocks, shares and a range of other assets.
This rare product does exactly that and is a particularly interesting one as the client as 0% equity in the property. The client is thus able to generate yield in the bank through assets under management (AUM) to offset the mortgage cost.
- LTV: 100% gross LTV upon acquisition
- Security: 65% net LTV secured against the property; 35% AUM held with the bank
- Mortgage rate: 0.95% fixed rate
- Duration: 5-year facility, interest-only
- Lender: Reputable private bank
The product will be especially interesting to my clients looking to secure finance on properties in France. Considering France’s substantial wealth tax on real estate, l’impôt sur la fortune immobilière (IFI), it is a very beneficial maneuver for HNW individuals to seek 100% LTV interest-only mortgages on French property.
If you find yourself in a situation that would benefit from a fantastic product such as this, we would welcome the opportunity to chat through your case with you. A no-obligation discussion regarding your specific scenario would allow us to offer suggestions, advice, and solutions going forward. As we have access to more than 300 worldwide lenders we are able to secure extremely competitive quotes for our foreign national and non-resident clients who are looking to secure property finance in the UK.