Why high-net-worth mortgages matter
High net worth mortgages are designed for individuals whose finances extend beyond the scope of standard lending. High-net-worth individuals (HNWIs) often have multiple income sources, significant assets, and unique financial situations that require bespoke mortgage solutions. Partners in an accountancy firm, for example, may benefit from these arrangements due to their income stability and future earning potential.
At Fitch & Fitch Private Office, we specialise in structuring lending that aligns precisely with your circumstances. In this article, we explore what constitutes a high net worth mortgage, who qualifies as a high net worth individual, and the specialist mortgage options available through private banks and lenders.
Introduction to bespoke mortgage solutions
Bespoke mortgage solutions are central to private banking for HNWIs. Unlike standard mortgages, these arrangements address the unique financial circumstances of wealthy clients, whose assets and income streams can be complex.
Private banks and specialist lenders excel in providing mortgages that reflect the full picture of a client’s net worth, offering flexibility and personalisation that mainstream lenders cannot match. These solutions consider not only salary, but also investment returns, business profits, and other non-standard forms of income. This ensures lending structures that support both immediate needs and long-term financial goals.
What defines a high net worth individual?
Understanding who qualifies as a high-net-worth individual is key to accessing the right mortgage solutions. While criteria vary, most private banks apply a high net worth exemption when certain thresholds are met. Typically, this applies if an individual has an annual net income above £300,000 or net assets of £3 million or more, excluding their main residence.
These thresholds apply individually rather than jointly. For example, a couple each earning £275,000 would not qualify unless one partner alone exceeds the £300,000 mark. Lenders also prefer assets that are liquid or easily realisable, such as cash reserves or publicly traded securities.
Meeting this definition allows lenders to offer more flexible underwriting, thereby bypassing the stricter affordability rules imposed by high-street banks. It recognises the diverse income streams and wealth structures that high net worth clients present, including trusts, family offices, and international holdings.
What is a high net worth mortgage?
A high net worth mortgage caters to borrowers whose financial profiles do not fit conventional models.
These mortgages are designed for those with:
- Non-standard income sources such as bonuses, dividends, or carried interest
- Significant liquid or investment assets
- Complex income from trusts, family offices, or international accounts
While some HNWIs may obtain loans from mainstream lenders, many require facilities that exceed standard lending limits. Private banks and specialist lenders can structure solutions that reflect the borrower’s total wealth and future earning potential, rather than just salary or employment status.
This approach is especially valuable for self-employed individuals, those earning in foreign currencies, or clients with international business interests.
How high net worth mortgages work
High net worth mortgages typically provide larger loans and more adaptable repayment structures than high street lenders. Private banks use bespoke underwriting processes, assessing overall net worth, investment portfolios, property holdings, and long-term income potential.
This broader perspective means mortgages can be used for varied purposes, including acquiring prime property, refinancing, or releasing equity. The result is a lending solution that reflects the full complexity of a high-net-worth client’s financial life.
Tailored lending options for high-net-worth clients
Complex income mortgages
For borrowers with variable or complicated income, complex income mortgages provide flexibility. These solutions consider multiple income streams such as foreign currency, rental income, business profits, or trust distributions.
Specialist advisers work with accountants and legal representatives to verify these income sources. This enables clients with fluctuating bonuses, commission earnings, or international income to secure finance that matches their true financial capacity.
High-value interest-only mortgages
Interest-only structures are popular with HNWIs seeking to optimise cash flow while preserving capital. Borrowers pay only interest during the term, with repayment planned through asset liquidation, secondary property sales, or maturing investments.
This option suits clients with significant assets but limited immediate income, such as investors awaiting the liquidity of their investments. Interest-only mortgages can be customised to align with broader wealth strategies.
Dry lending
Dry lending allows clients to borrow without placing assets under management (AUM) with the bank. Ideal for those with existing wealth managers, it lets borrowers retain control over investments while still accessing significant mortgage facilities.
Private banks assess total wealth on a case-by-case basis, providing discretion and independence for clients who value autonomy.
Securities-backed lending
For clients with substantial portfolios, securities-backed lending allows borrowing against equities, bonds, or funds without requiring the sale of these assets. This allows continued exposure to potential gains while using the portfolio as collateral.
Loan-to-value ratios typically range from 50% to 80%, depending on asset liquidity. Publicly traded stocks usually allow higher leverage, making this attractive for clients with diversified holdings.
Eligibility and application process
Qualifying for a high net worth mortgage requires demonstrating significant income or assets. The application process is more nuanced than mainstream lending, often involving tax returns, business accounts, and evidence of liquidity.
Working with a mortgage broker or private bank is essential to identify the most suitable lender. Each provider applies its own criteria, often assessing cases individually. A strong credit history and demonstrable financial stability remain important factors.
Repayment and mortgage management
Managing high-net-worth mortgages demands a strategic approach. Repayment options often include interest-only structures, allowing flexibility to align with liquidity events or investment maturities. Clients must, however, plan carefully for repayment of the principal at term-end.
Tax efficiency is another key consideration. Advice from tax professionals ensures repayments are structured optimally. Many private banks offer ongoing support, helping clients adjust their mortgage strategies in response to changes in their financial circumstances or market conditions.
How a private office broker adds value
Navigating high-net-worth mortgages requires expertise and access to specialist lenders. At Fitch & Fitch, our Private Office acts as a trusted adviser for entrepreneurs, executives, family offices, and international investors.
We provide access to over 100 mortgage providers, including private banks and niche lenders. Our role is to structure lending that reflects complex income streams, multiple assets, and significant wealth profiles.
Through personalised and discreet service, we help clients secure finance efficiently while optimising interest rates and overall costs. With a strong track record in complex and international lending, we are well-positioned to deliver the right outcomes.
Ready to explore your options?
Whether refinancing a high-value loan, purchasing a new property, or releasing equity, our Private Office is here to assist. With expertise in securing mortgages for complex or international purchases, we offer confidential consultations and bespoke strategies tailored to your needs.
For more information or to discuss your requirements, contact our Private Office team at privateoffice@fitchandfitch.co.uk or call 020 7859 4339. Secure your future today with a mortgage solution designed around you.