High Net Worth Individual

MORTGAGE

Advice

Our expert team can assist you in finding the perfect Mortgage. We conduct a whole of market search to match you with the perfect lender.

High Net Worth Individuals

As with large loans and million plus lending, mortgages for High Net Worth (HNW) individuals are far more nuanced and complex than standard residential lending. With a standard mortgage, a lender will have a number of criteria which the applicant will need to meet in order to be accepted, which the broker can evidence through a number of accepted documents. This is often not the case for HNW applicants, as their income often comes from sources other than employment, such as through stocks, bonuses or dividends. This means that a different approach to the packaging and underwriting of the case is needed, which our specialist lending team have expert knowledge and experience of.

What is a High Net Worth Individual?

The Financial Conduct Authority (FCA) defines a HNW individual as a customer with an annual net income of more than £300,000 or net assets of more than £3,000,000. Many high street banks or smaller building societies do not have the capacity or criteria to meet the needs of such clients. As a result, a bespoke lending arrangement is often needed which can typically be offered by private banks or specialist departments within a global firm.

At Pinnacle we have close relationships and direct points of contact within these firms, meaning we are able to present an in-depth summary of the case to help the lender understand the background behind the client’s income. Typically, mortgage applications for HNW individuals will be assessed on an individual basis rather than being underwritten according to set criteria. You can be assured of the care and expertise we take when it comes to presenting such cases to lenders.

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Can I get a mortgage as a High Net Worth individual?

As mentioned above, HNW individuals will likely have income coming from a variety of sources or from a non-traditional source, which can increase the complexity of the case. In most cases, a prospective client will need to go through a process called ‘onboarding’ which is essentially becoming a customer of the bank. This differs from a standard mortgage with a high street lender, where they will receive the application and underwrite the case. Instead, in the case of private banks, they will need to assess whether the client is right for them, often by assessing the client’s wealth, assets and numerous months’ worth of bank statements. This can often be a lengthy process which takes longer than the actual underwriting of the case, which is typically where more flexibility can be applied.

The income profile of HNW individuals is not the only complexity when it comes to mortgage lending, as these types of clients will typically purchase more obscure property types which can also be harder to secure a mortgage on. For instance, lenders can hold tighter criteria on properties with land over two acres which will be more likely to appeal to a client with a larger budget. This can further limit the availability of mortgage lenders who can consider the case, however does not by any means deem the chances of getting a mortgage impossible. With our close relationship with a number of private banks and whole of market access, we can offer expert guidance on the right mortgage arrangement to suit you if you are a High Net Worth individual, as well as providing bespoke solutions to fit your needs. Contact us today to discuss your mortgage eligibility as a High Net Worth individual.