After a challenging year for the Prime Central London market, we know our clients have more questions than ever about UK property finance. As such, we’re delighted to present the new Enness Private Office website, a dedicated source of news and information for our ultra-high net worth clients. To celebrate this launch, the Enness Private Office brokers have put together some of the best mortgage products for high net worth (HNW) borrowers.
Mortgage products for high net worth borrowers
Enness Private Office broker Chris Lloyd has recently placed a number of clients with a lender offering mortgages up to £15million. “Typically, you can borrow up to 85% loan to value (LTV) with this lender, although we have a history of securing even more for our clients. High loan to value mortgages are very difficult to come by when you look over the £1million borrowing bracket, so the fact this lender will lend up to £15million is exceptional. With a minimum income requirement of £300,000, this lender is a great match for many Enness Private Office clients.
As another appealing feature, you don’t need to bank with this lender in order to secure a mortgage, which is quite unusual. This lender can also offer great buy-to-let mortgage rates for HNW clients, offering 2-year fixed rates starting from under 3% at 50% LTV.”
High loan to value mortgages
Broker Andrew Chalton also highlights the importance of high LTV mortgages. “Many of our clients want to keep their liquidity high so they can make strategic investments elsewhere. Minimal deposit and low monthly repayments are therefore often a priority. One lender we work closely with is currently offering 85% LTV mortgages at a 2-year fixed rate of 1.65%. This is a very strong offering, considering they will lend up to £2million, making this an ideal product for high net worth individuals looking to purchase a large property with a low deposit.
Many Enness Private Office clients are self-employed, so we endeavour to build relationships with lenders who offer favourable mortgages for self-employed borrowers. For example, we work with a lender who offers a 1.65% fixed rate using just one years’ net profits.”
Best mortgages to protect yourself against market changes
Head of Private Office, Antonio Michael, knows that many clients are concerned about being left exposed by changes in the market. “Many of our clients are concerned about imminent rate rises, which the Bank of England has hinted at in recent days. On a large loan, even a minimal rate rise can represent a significant increase. 5-year fixed rates therefore give you security as to what your payments will be. One lender we deal with offers 5-year fixed rates of 2.59%, up to 80% LTV. Available for mortgages with a minimum loan size of £1million, this lender also allows overpayments of 10% of the outstanding balance without incurring Early Repayment Charges (ERCs), which is also ideal for clients who receive large bonuses.
Of course, when it comes to wealthy individuals, it’s important to remember that talking in terms of exact product offerings can be misleading—because for the right client, we can negotiate a bespoke and holistic offering, tailored to your individual circumstances. As such, developing a private banking relationship can be a better place to start than looking for an ‘off the shelf’ product. If you have questions about your individual circumstances, head to the Enness Private Office website to see if we have an article which answers your inquiry—and of course, get in touch for a tailored consultation.”