Many of our high net worth (HNW) clients come to us looking for large high loan to value (LTV) mortgages – sometimes as high as 85% LTV. This enables them to maintain cash flow, as they don’t tie up as much liquidity in one high value asset.
Unfortunately, such high LTVs are hard to come by above £1million, particularly with high street lenders. We work with all the top private banks, who are more accommodating of HNW borrowers, and have access to the best products for these clients.
One particular product available to our HNW clients, is an excellent large mortgage which can be used for loans of £1million-£15million, and can go as high as 85% LTV at a rate of 2.69% for a 2-year fixed.
A full breakdown of the rates is below:
To be eligible for these rates, the principal earner must have a minimum annual income of £300,000 and is typically required to have at least £3million net asset value (NAV).
Another excellent feature of this product is the ability to take 100% of a client’s bonus, taking an average of the last three years. This is something a lot of clients approach us about, thinking it’s not possible to do.
Borrowers who take their income in foreign currency can also make use of this. This is often the case with our clients, who tend to have a global portfolio of assets and multiple income sources.
To aid cash flow, a 5-year interest only facility is available, reverting to capital repayment later on. For further flexibility, HNW borrowers can make use of the revolving mortgage facility available – up to 75% LTV – to enable further lending, for onward investment.
Having access to private banks is invaluable for HNW borrowers, as it offers a level of flexibility which is simply not available on the high street. To speak to us about whether you are eligible for this product, get in touch and we’d be happy to discuss your requirements.