High Value Mortgages

If you are looking for a mortgage in excess of £500k, you will likely find that high street lenders are not well set up to cater to your needs.

 

When borrowing at this level, it is highly advisable to look for a more specialist lender with expertise in high value mortgages. They will be able to offer a more appropriate level of service and can usually offer more attractive rates of interest than high street lenders with greater flexibility.

 

The following are some of the key issues to consider before taking out a high value mortgage.

 

Interest rates on high value mortgages

Specialist lenders, such as a private banks, with expertise in high value mortgages often offer very attractive interest rates and flexible loan terms. One reason for this is because they tend to take a more personalised approach to assessing risk.

 

This means issues which would see you flagged as high risk by the more box-ticking style approach of high street lenders will not necessarily be seen as a problem by private lenders. Therefore, they will generally be willing to offer much more attractive rates.

 

Factors which are likely to affect your interest rate include:

• How much you are looking to borrow
• How long you wish to repay over
• The value of the mortgage versus the value of your assets (loan to value or LTV)
• Your income
• The total value of your assets
• How much debt you already have

 

Lending criteria for high value mortgages

High value mortgage lenders usually take a much broader view of lending criteria than high street banks. This means it is often possible to get a mortgage with these kind of specialist lenders when high street lenders are not willing to lend.

 

Issues high value mortgage lenders can help you overcome include:

• Complex income streams
• Overseas income
• Non-UK residency or nationality
• Purchasing non-standard properties
• Using assets other than property as security

 

Dealing with complex incomes

Many individuals looking for a mortgage over £500k will have complex incomes relying on various sources, including business interests, investments and stock portfolios. This can be a problem for traditional lenders, especially if some of that income is from overseas or in a foreign currency.

 

Fortunately, many private lenders will be happy to take income from a variety of sources into account when looking at the affordability of a high value mortgage for you. This means you are more likely to get the mortgage you need and may be able to borrow much more with a private lender.

 

Choosing security for high value mortgages

If you are keen to secure your mortgage against assets other than property, or if the property you wish to use for security is outside of the UK, most high street lenders will not be able to accommodate this.

 

Lenders specialising in high value mortgages, however, will look at a broader range of assets to use as security against a loan. This can make borrowing easier and allow you to borrow at a higher level.

 

Assets you may be able to use as security for a high value mortgage include:

• Property outside the UK
• Personal pensions
• Stock portfolios
• Boats and other high value assets

 

Find the best deals on high value mortgages

When looking for a high value mortgage, it is strongly recommended to use an independent mortgage broker to help you get the best possible deal.

 

An experienced mortgage broker will have access to the widest possible range of lenders, include private banks and investors not available directly to the public. A broker will be able to advise you on the best options to fit your borrowing needs and personal circumstances, allowing you to quickly find the money you need with the minimum of fuss.

 

Please click on the table above to find out more about our team of high value mortgage brokers at Clifton Private Finance.