High Net Worth Mortgages
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What is High Net Worth?
The Financial Conduct Authority regards a high net worth application as a client who earns a minimum of three hundred thousand pounds a year or has assets worth three million pounds. High Net Worth individuals tend to purchase large mortgages.
Does Your Net Worth Affect your Application?
Yes, it does, say you are applying for a residential property, lenders will look into what properties you already own. When it comes to mortgage applications a lender will want to know your complex income and to see your assets.
If you have a high-value property, the lender will restrict the loan to value due to the risk involved. A client who is buying a property for just under three million, the maximum loan to value a lender may go to is 75% to reduce the risk. If this goes above four million, the lending could then be reduced by 50% loan to value because of the risk.
High Net Worth and Self-Employed
It is not uncommon for people with a high net worth to be self-employed. It is important to know how your income is made up when applying for a mortgage. You will need to provide evidence of your income no matter how complex this may be.
It is about finding a lender who understands the client and the way they take their income. If there is retained profits in a business for example, one lender would overlook this, yet another will see it as income.
How Can A Mortgage Broker Help?
A mortgage broker can help gather all of the evidence you will need to prove your income. They will even get in touch with your accountant to understand your tax affairs more and to gather the last three years of business accounts and tax documentation.
The mortgage market is ever-changing, and a mortgage broker keeps up to date with all the happenings, so you don’t have to. You need to make sure that you understand what you are committing to and also make sure that you can get the property you long for.
There are a range of different products and policies out there and plenty of lenders, including specialist lenders. A mortgage broker can help you to find the right lender for you. They will take all of your personal circumstances into account and cater to your needs.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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