Understanding potential limitations in qualifying for high-value mortgages means borrowers can make informed decisions about securing financing for their property ownership goals.
Borrowers seeking a high-value mortgage can struggle to find a lender to meet their needs.
Often this is because high street banks have tightly restricted lending criteria, frequently based on a fixed multiple of annual income.
This means high-net-worth (HNW) individuals may not be successful if they approach these banks direct because their income structures, which can be complex, are not fully understood. The same is true for so-called challenger banks, digital-only or smaller banks which have set out to compete with household names.
In contrast, private banks often offer more flexible lending criteria, assessing income in a more fluid way and also bringing other considerations into their decision. However, their rates and fees may be higher.
High street lenders vs. private banks
High street lenders, such as banks and building societies, offer a range of mortgage products to suit a variety of borrowing needs.
While their interest rates can be competitive, their fixed approach to lending, and the criteria applied, may not fully take into account all available assets and income. Successful applications outside the standard criteria are possible, but hinge on the underwriter’s discretion.
Private banks, on the other hand, consider applications on a case-by-case basis. Their process looks at a would-be client’s overall financial health, but is also influenced by the general risk appetite of the specific bank. However, arrangement fees are often considerably higher than high street lenders and private banks may also not be able to match the interest rates they can offer.
How can Henry Dannell assist borrowers seeking a high-value mortgage?
At Henry Dannell, we understand the unique challenges that borrowers seeking a high-value mortgage can face and specialise in providing HNW mortgage advice.
Kem Kemal, CEO and Co-Founder of Henry Dannell, comments:
“Securing a high-value mortgage is not just about the numbers; it’s about understanding the intricacies of each borrower’s financial landscape. We combine the benefits of private banks and high street lenders, squaring the circle and offering extensive choices to our clients. In our experience, if income and assets are explained fully, many deals which clients assume will only be possible via a private bank can actually be completed by a high street or challenger bank.”
This is made possible by our team of expert advisers, who take the time to fully understand each client’s specific circumstances and objectives, evaluating all available options to identify the most suitable solution as well as the best rate.
This approach is based on our deep and longstanding relationships with banks and their underwriting teams. We work closely with them to provide a comprehensive overview of a client’s income and assets. With a well-presented case, we can provide clarity on affordability to underwriters – giving the credit team the trust they need to approve high-value lending.
For more information or support arranging a high-value mortgage, please do not hesitate to contact our specialist team of advisers.
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.