High Net Worth Mortgages - Avail Mortgages
If you’re worth your weight in gold, then a High Net Worth Mortgage may be for you.
When it comes to High Net Worth Mortgages, it can be tough knowing which mortgage to choose, and you can be faced with many questions. Are interest only Mortgages right for me? What mortgage rates are out there? Are any mortgage lenders better than others? These are all good questions, and ones that we here at Avail Mortgages can help to answer.
At Avail Mortgages, we work with leading mortgage lenders to provide you with a mortgage that you can be happy with. Aiming to make the mortgage application process as hassle free as possible, we throw advanced mortgage technology into the mix – which includes our High Net Worth Mortgage calculator and client portal. Coupled with our extensive knowledge of the needs of High Net Worth Mortgage customers, we are bound by the principles laid down by the Financial Conduct Authority (FCA) and their ‘Treating Customers Fairly’ (TCF) initiative, ensuring a regulated and effective mortgage service.
What Are High Net Worth Mortgages?
If you earn over £300,000 per year or have net assets of at least £3 million (as defined by the Financial Conduct Authority), a High Net Worth Mortgage can provide you with specialist mortgage rates that aren’t typically available from standard lenders.
Often requested for high value properties or investments to build a property portfolio, these mortgages can be larger and more complex than other mortgage types. Many customers want to protect their assets and so lending through offshore structures, special purpose vehicles, trusts, and foundations may be required. At Avail Mortgages, we can simplify this process, and help individuals gain the mortgage they desire.
With High Net Worth Buy To Let Mortgages and High Net Worth Mortgages on a second home also available, our mortgage advisers here at Avail Mortgages can help you find the right mortgage for you.
Why is it Difficult for High Net Worth Individuals to Receive a Mortgage?
It’s funny. You’d think by having high value assets and being comfortable financially, it would be pretty easy for you to receive a mortgage. But due to mortgage regulations tightening since the financial crisis in 2008, many mortgage lenders are stricter on who they lend to.
What’s more, the main cause of High Net Worth Mortgage difficulties are the often irregular incomes of the these individuals. Many will have gained their wealth from inheritance, income from investments, or have their wealth held inside trusts and spread across numerous territories. Unsurprisingly, high street mortgage lenders want clients who have a steady flow of income to ensure that they will be able to meet their monthly mortgage repayments. Because these individuals may not have a constant source of income, they become undesirable to mortgage lenders.
So what are these individuals supposed to do? Well here at Avail Mortgages, we have access to a great range of High Net Worth Mortgages, mortgage rates and lenders, ensuring that we find the most suitable and viable mortgage based on your requirements. High street lenders may deter you, but our mortgage brokers never will. Therefore, if you’re located in Leeds or the surrounding areas including York, Bradford, Harrogate and Huddersfield, please get in touch with us today to learn more.
High Net Worth Exemption For Mortgages
Article 60H(1) of the Financial Services and Markets Act 2000 Order 2001 sets out the exemption for consumer credit agreements entered into with high net worth individuals.
In order for this exemption to apply, the individual must state that they relinquish the protection and remedies available if the agreement were to be regulated as a consumer credit agreement, and obtain a statement of high net worth signed by their mortgage lender.
A High Net Worth Mortgage customer must also meet the following criteria:
- The customer must have earnt, net of national insurance contributions and income tax, no less than £150,000 during the previous financial year; and/or
- throughout that year held net assets of not less than £500,000, excluding items such as a primary residence and pension contributions.
There are some restrictions to this exemption however, and these include:
- The mortgage exceeds £60,260, the credit agreement is entered into on or after 21 March 2016, and the purpose of the loan is either the renovation of residential property or to acquire or retain property rights in land or an existing or projected building; and/or
- The credit agreement is entered into on or after 21 March 2016, the credit agreement is either secured on land or to acquire or retain property rights in land or an existing or projected building.
If this has left you scratching your head, don’t worry. Our mortgage brokers at Avail Mortgages are here to help, and have extensive knowledge on the subject. To learn more about High Net Worth Mortgages and to ensure you find the right one for you, we encourage you to get in touch with our mortgage brokers today.
High Net Worth Mortgage Rates
Due to the special circumstances surrounding High Net Worth Mortgages, many mortgage lenders will accept a mortgage application with high rates of interest. Fortunately, here at Avail Mortgages, we’ve built up strong relationships with mortgage lenders so that we can negotiate the best mortgage deals on your behalf. With access to High Net Worth Mortgage rates you won’t find anywhere else on the market, our mortgage brokers are here to help you.
When it comes to these mortgages, high net worth interest only mortgages are a popular choice. Interest only mortgages are where you only pay the interest due on the amount you borrowed each month. Your monthly mortgage repayments will be lower than if you were to, say, choose a repayment mortgage, but you’ll still be expected to pay back the amount you originally borrowed when you reach the end of your mortgage term. Interest only mortgages do require a high level of financial responsibility and mortgage lenders may ask for evidence as proof of your commitment to make the mortgage payment.
Get In Touch
For mortgage brokers you can trust, we recommend getting in touch with Avail Mortgages today. Aiding clients in Leeds and the surrounding areas including York, Bradford, Harrogate and Huddersfield, we can source and secure the best High Net Worth Mortgage rates and High Net Worth Mortgages, and make you aware of the exemption available too. Contact us today to find out more.