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How to Secure a High Value Mortgage
High value mortgages are often more difficult to secure than you might expect.
You may assume that banks and lenders will be chomping at the bit to offer you a high value mortgage so they can start earning interest on a larger-than-average loan.
However, it's not always the case. The issue with high value mortgages is that they are rarely straightforward.
Whether the property you’re buying is unusual: from listed buildings to large and unique residential properties that are so bespoke they’re hard to sell.
Or your circumstances are unusual: perhaps you’re a foreign national or an expat, or have multiple income streams and a complex wealth structure.
Not all banks and mortgage lenders are geared to handle unique, high value mortgage applications – instead, they focus on appealing to the masses. Easy, ‘standard’ mortgage applications from your everyday salaried UK resident are valuable to lenders because of their simplicity and volume.
So, what’s the solution when you need something more bespoke? A high value mortgage broker.
See similar: Complex Income - How to Secure a Mortgage
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What is classed as a high value mortgage?
High value buy to let mortgages
High value international mortgages
High value interest only mortgages
What is classed as a high value mortgage?
The criteria for a high value mortgage vary within the industry, but generally, a high value mortgage can range from £500k to £25m.
Of course, a private lender’s threshold for a ‘high value mortgage’ will be much higher than a high street bank’s - but these are ballpark figures.
What is a high value mortgage broker?
A high value mortgage broker specialises in sourcing property finance for complex situations at the highest tiers.
Whether you need a high loan to value mortgage by leveraging other assets and wealth, you need to factor in overseas income streams to your application or you need an interest only mortgage to better suit your wealth and cash flow structure, a good specialist mortgage broker will connect you with the right high value mortgage lender.
High value property buyers also need to move fast.
If you’re buying in a popular area, be it Central London Richmond, Fulham or Islington, then you’re buying in a competitive market.
Great residential and investment opportunities don’t hang around for long – so it’s good to have a professional in your corner streamlining the process and pushing your application through.
At Clifton Private Finance, we have relationships with various private banks and specialist lenders to source truly bespoke property finance for the most demanding clients.
Our mortgage advisers are veterans of the private lending industry, so we can confidently ascertain the right lender for your application.
But that doesn’t mean to say we rule out high street banks. When we can fit your mortgage application into a mainstream lender’s criteria, we often will, as it usually means a lower interest rate.
We’re a whole of market broker, so our end goal is to find you the right mortgage for you at the best price. And we work quickly, with your best interests at the forefront.
Related: See our full guide to sourcing property finance as a high net worth individual.
High value buy to let mortgages
High value buy to let mortgages usually come in the form of portfolio finance.
While we do source buy to let finance for individual high value properties (HMOs in prime London locations, for example), BTL portfolios are among the biggest property finance loans we arrange.
Case Study – Read our recent case study below, where our broker helped a portfolio landlord refinance 18 London BTL properties simultaneously.
Some of the most common challenges in securing BTL portfolio financing include the following:
- Deciding whether to finance properties individually or under one large loan
- Organising multiple existing finance arrangements concurrently
- Mortgaging different property types (values, locations, occupancy type etc.) through different lenders
- Getting a low rate across your entire portfolio
- Stress tests against your entire portfolio
Having a mortgage broker experienced in remortgaging large BTL portfolios can be incredibly valuable for portfolio landlords.
Not only can we quickly source the best rate for each property, but we can also organise your applications and streamline the entire process for you.
Related: What is a buy to let stress test, and how to pass it?
High value international mortgages
If you’re a foreign national looking for a high value mortgage on a new property in the UK, you may struggle to go through traditional lending routes.
Perhaps you’ve spotted an investment property in Chelsea or Kensington or a potential UK base in Surrey – wherever the opportunity, you’ll need to raise finance quickly if you’re going to compete with cash buyers.
But again, mainstream lenders aren’t always set up to process mortgage applications for foreign nationals – they focus on the high volume UK customer base.
Knowing a mortgage broker specialising in international clients is key to securing your dream property in the UK – whether it’s a second home or an investment opportunity.
At Clifton Private Finance, we have specialist advisers dealing with our international clients who know the ins and outs of the UK mortgage application criteria for non UK citizens.
Related: What are the most expensive streets for property in the UK?
High value expat mortgages
Buying a property in the UK as an expat is a popular way to keep a base in the UK while providing rental income during your time abroad.
It also means you’re not missing out on the strength of the UK property market, and your money is working hard while you’re earning overseas.
Particularly if you’re earnings are more significant abroad due to lower tax rates, and you want that extra income to really pay off.
But securing a mortgage can be difficult – especially if you don’t know what you’re looking for in terms of benchmark rates and terms.
Speaking to a specialist expat mortgage broker can give you peace of mind that you’re getting the right mortgage (and the right rates) for you.
We’ve helped hundreds of expat clients find high value, competitive property finance.
Case Study - Read how our broker secured a mortgage for our client earning in two different foreign currencies to buy their new Cheshire home.
High value interest only mortgages
Interest only mortgages are a popular option for high net worth clients.
If your wealth is tied up in other assets, such as property or stocks, and your cash flow is reserved for other spending – you might find you’re unable to fund your property purchase despite having the wealth to afford it.
Interest only mortgages provide a unique solution: repay only the interest accrued on your loan each month, leaving the capital you owe until the end of your loan term - protecting your cash flow and securing the property you have your sights on.
You’ll need a proven way to repay your mortgage at the end of your term, i.e., the details of another property or asset you can liquidate.
Related: Read our full guide to large interest only mortgages for more information.
And watch our case study video below on how we secured an interest only mortgage for a British expat:
Get expert advice
Securing a mortgage for a high value property isn’t always difficult, but it can be – especially if your circumstances are extraordinary.
And how do you ensure you're getting a competitive interest rate?
It’s not practical to try and compare mortgages from various different private lenders yourself – many won’t even give you a quote unless you go through a connected mortgage broker anyway.
And finding them in the first place can be a challenge (private lenders tend to rely on introductions and word of mouth rather than widespread marketing campaigns).
Our brokers at Clifton Private Finance can introduce you to a private or specialist lender if your borrowing needs demand it.
Our bottom line is that we’re dedicated to finding the most cost-effective property finance solution for you – no matter how bespoke or complex your needs are.
Call us at Clifton Private Finance to find out what we can do for you:
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