Whether you are looking for large residential mortgages or large buy to let mortgages this is a specialised area of finance. Enness has experience and contacts which places us head and shoulders above anyone else in the large mortgage market. We have refinanced luxury properties in areas such as London, Monaco, Dubai and many more, securing high net worth lending in excess of £1 million and on occasion over £100 million.
Large mortgage lenders
You may be surprised to learn that while the high value mortgage market is competitive and liquid, securing a deal without a mortgage broker can be challenging to say the least. Whether looking towards private mortgage lenders UK based or private finance from overseas, it comes down to a case of access. Our exclusive network of contacts in the world of finance opens doors which are closed to many mortgage lenders and financial advisers. This is what makes us different, why we stand out from the rest.
In our experience, there is no one size fits all/off-the-shelf large mortgage structure as financial circumstances are often very different. It is our ability to work around your financial and personal circumstances which allows us to structure large mortgage deals that deliver. During our years in the international mortgage market we have overcome an array of challenges relating to residency, cash flow and the use of international assets as collateral. We have arranged large mortgage finance through offshore companies and trusts which take into account an array of different currencies.
What are the Best Large Mortgage Rates?
The interest rate in this area of the market is very important given the scale of the borrowing. Large mortgage interest rates will often be individually negotiated and based on your circumstances.
Large mortgages from high street mortgage lenders
As a very general guide, the main high street mortgage lenders will offer the cheapest rates. these however are reserved for the most simple of borrowers, with clean credit history, simple UK income profiles and low loan to values. Interest only is available but credible repayment strategies need to be demonstrated. Its easy to find cheap mortgage rates on the high street but delivering a smooth result can be challenging. (think call centers, computer says no and strict computer driven criteria). We have however seen high street banks offer great large mortgage interest rates staring from less than 1.5% per annum. arrangement fees are also typically low.
Large mortgages in the UK from International Private Banks
International Private Banks also offer very competitive mortgage lending rates, although these are often based on your net wealth, or attractiveness to the bank, rather than eligibility based on a lending criteria. We have seen high profile international private banks offer mortgage rates from as little as 1.2% over cost of funds (i.e bank of England base rate or Libor) however this is often based on the client depositing, or at least having, a certain level of liquid net wealth. Arrangement fees will be comparatively higher than the high street, mortgage duration will often be limited to 5 years, on an interest only basis. There are cases where borrowing against assets under management placed with the bank as part of the agreement can provide excellent results 0 this is called ‘Lombard lending’
UK Private Bank Mortgage Rates
UK Private Banks tend to be much more client focused and lending is based on the transaction itself and in some cases whether the client is a ‘good fit to the bank’ Expect highly personalised lending, a very personal service, flexible but considered underwriting and a solutions based process. Things like pre-paying mortgages, interest on account, secondary security bullet repayments and ‘outside the box’ thinking and so on can make deals happen. However, as a consequence and in return for service or flexibility you may pay a slightly higher interest rate, Mortgage rates from private banks are in the 2.5-3.5% mark. Interest only and longer term mortgages are fully the norm.
Specialist Lenders who offer large mortgages
Next up the interest rate scale come specialist lenders and a few building societies. While loan amounts form these lenders may be capped at £5 – £10 million for example, you will see much higher loan to values (up to 95% in some cases) full interest only and more relaxed views on things like retained profits for business owners or even directors loans being taken in to account. Large mortgage rates from uk specialist lenders will be in the 3.5-5.5% interest rate range.
Other niche large mortgage providers
If these options dont meet your large mortgage requirements you will be faced with entering the peer to peer / bridging finance and specialist finance house markets. Here everything is priced for risk, everything is open to negotiation and presentation and explanation is key. Maximum loan to values will be limited and interest rates will start from 6% per annum. You will need to have a real reason to be here and you shouldn’t plan to stay on these rates for very long. Examples of where these lenders will be used are for asset rich, cash poor scenarios, high value buy to lets where rental income is not sufficient, examples of adverse credit or reputation risk
What else is important when considering the best large mortgage lender?
Aside from the prevailing interest rate, other things may be as or more important when creating a large mortgage solution. for example:
Flexible underwriting to achieve a high mortgage amount
Many of our clients will happy pay a slightly higher interest rate if it means they can borrow more on their mortgage. Many of our clients, with international affairs, large businesses, multiple investments (or expensive living standards) value retaining their capital or savings. In these situations a more bespoke mortgage option is of value.
Fast mortgage offers
Being able to respond fast to an opportunity, to quickly fix a problem or even to just get things done can be a major consideration to many people and one which can outweigh the over all interest rate.
Being able to quickly move on a property to secure the best price, and then after completion remortgage to a keener interest rate is an example. This may secure a dream family home or a major discount – again, this may outweigh the value placed on a low rate.
Large mortgage interest rate structure
Large mortgages come in all shapes and sizes. Interest rates can be pegged against the bank of England base rate or any other international benchmark. They can be based in Sterling, US Dollars, Euros or most other major international currencies. They can be fixed for 2,3,5 10 or even 25 years in some examples. large mortgages can be secured against property, but also tother assets, like bonds, stock portfolios or even case. And of course, they can be a mixture of all these things.
Early repayment penalties
Having a large mortgage with out early repayment penalties can be a huge benefit and may be a reason for accepting a premium on the interest rate. If you are expecting a liquidity event (sale of a business) or your income means that you can pay the mortgage off quickly for example
large offset mortgages
Large offset mortgages (where cash savings in a bank account associated to the mortgage, the balance of both is what the mortgage interest rate is based on) are not as common as they once were, but they are certainly available. Large offset mortgages will carry a higher interest rate bit the benefit of a lower APR overall if the borrower has a large cash balance, or the ability to draw large sums of capital instantly can be highly appealing.
How much income do you need to secure a large mortgage?
Normal income multiples apply to most large mortgages, especially high street lenders. as a rough guide 4.5 to 5 times income or up to 6 times with some lenders.
However what this doesn’t say is what income is included. How salaries, dividends, retained profit, trust income, maintenance, investment income, directors loans, capital gains and so on are assessed are of very high importance for very large mortgages.
These points are further amplified if the income is variable. piecemeal, in foreign currencies or from multiple jurisdictions.
Being able to cleanly demonstrate your income, show that it is sustainable and predictable or even showing simple income in a way the lender will understand can be a challenge.
There are plenty of banks who will help however as explained above.
Can you get a Large UK Mortgage if you are a foreign national or live overseas?
living overseas, or being a non UK national or resident, or being don domiciles for tax purposes makes very little difference to mortgage applications.
Some of the very cheap high street mortgage products may not be available but that should not present a barrier.
In fact, there are a few extra options to high net worth international borrowers when it comes to UK mortgages. Some regulatory points can be softened especially from offshore lenders meaning the whole process can become a but simpler
Structuring high value mortgage transactions
As we touched on above, there is no one size fits all in the HNWI mortgage market. In many cases the deal structure tends to hinge on leveraging current assets such as pensions, bonuses or even fine art. The key to structuring such mortgage transactions is access to not only the commercial banking market but private banks as well. Our experience tells us that private banks are more flexible, more accommodating and can create an array of bespoke products under our guidance. This opens a whole array of new options for large commercial mortgages and large buy to let mortgages.
The key to achieving the best interest rate, preferable terms and significant funding is to utilise all assets to hand. We can also offer guidance in areas such as taxation and legislation which tend to change on a regular basis in our markets. While tempting to assume that taxation/legislation is similar from country to country, this is not always the case. Therefore attention to detail when structuring high value mortgages is essential.
Securing high net worth lending
As we have long-standing experience in this market, and an extensive network of contacts, we know how the process works and what paperwork is required. This ensures that mortgage finance is made available in a timely manner with large mortgage deals often time critical. Even though many high net worth mortgage brokers will refuse to use specific assets as collateral, we are confident we can find a way.
We fully understand that each client case is unique and often requires a bespoke approach when raising finance. We have a team of experts with unprecedented access to both commercial and private lending markets. Our clients range in wealth with residencies across a variety of countries and asset often spread across the globe. Utilising all assets and income to hand is the key to structuring the best mortgage finance on the market today. If you are looking to raise significant mortgage finance, perhaps you are been turned down by another broker, we would welcome the opportunity to discuss your situation in more detail.