Buying a house is one of the critical and stressful decisions that people make throughout their entire lives. The process of purchasing a property, whether a luxury penthouse or a sprawling country home, can be lengthy, and the repayment terms can affect your financial situation for many years. So it’s vital to ensure that your residential mortgage works for you both today and in the future.

A residential mortgage assists you in financing a property purchase and there are hundreds of lenders available. Each lender has its area of specialisation and criteria for terms and rates based on your financial situation, your profile, the market you operate in and the quality of residential mortgage advice you receive. It can also be challenging to obtain competitive residential mortgage rates and terms if you want to borrow significant funds or have complex personal circumstances. So it’s vital to negotiate the best finance package that helps you to purchase a property or use your assets to create liquidity.

After discovering your dream home, the next step is to broker the right mortgage for your specific circumstances. Whether you’re looking to purchase a new home or remortgage an existing property, Hectocorn can help you negotiate the most advantageous mortgage rates.

In most cases, lenders will assess your income and expenses to establish how much capital you can borrow. As a general rule, you can borrow roughly 4.5 times your total income, with a  minimum deposit is 5%. Ultra-high-net-worth individuals can also benefit from releasing equity on their current properties, thus uncovering funds to invest elsewhere and further boosting portfolio returns. 

Common residential mortgage options for ultra-high-net-worth individuals include:

Large mortgages

 Large residential mortgages are classified as in excess of £1 million. These residential mortgages are very difficult to secure from high-street lenders; thus, private lenders tend to be the best option. Large residential mortgages are only usually available to people willing to establish long-standing relationships with private banks. Typically, you would need over £3 million worth of assets or an annual income exceeding £300k to be considered. 

Private banking mortgages

A mortgage with a private bank can be secured using existing assets as collateral. In most cases, securing a mortgage exceeding £1 million requires at least £3 million worth of assets or an annual income exceeding £300,000. To do this, you have two options, assets under management (AUM) or dry lending.

Most private banks require you to place AUM under their jurisdiction to act as security against your mortgage, which helps them foster long-term relationships. Dry lending refers to mortgages offered without the need for assets to be placed under management with the lender, which can be a good option if assets are tied up with other banks. It’s not necessary to move existing assets you hold with other banking groups, but they might be considered to support negotiations on your current mortgage. Providing a lender with a transparent and holistic view of your wealth increases your chances of receiving more favourable better mortgage terms.  

Complex mortgages

Securing a residential mortgage can be more difficult when circumstances are more complex, such as property owners earning income from overseas, having low income and high assets or being a foreign national. This is where you need expert broker assistance to help you navigate an often tricky process.

Tailored mortgages

 A residential mortgage can also be trickier to secure if you’re looking for a significant amount of money or require specific interest rates or terms. In this situation, you need to ensure the residential mortgage is tailored to match your particular requirements.

Interest-only mortgages

Interest-only mortgages are a good short-term solution for ultra-high-net-worth individuals who are looking to keep their monthly outgoings flexible and maximise on investment opportunities. However, this is only a viable option if you have a long-term plan in place for paying back the interest, which is often through selling stocks or property.

Self-employed mortgages

Self-employed mortgages can be challenging to agree on given the added terms and conditions that apply and the varying rates and terms. Most lenders require at least three years’ worth of accounts to offer you a mortgage, but some will consider circumstances to negotiate the right deal.

Foreign national and ex-pat mortgages

Ex-patriots and foreign nationals can face significant barriers when trying to obtain high-value financing. Due to the complications involved, most high street lenders are reluctant to lend to non-UK residents or foreign nationals. Lenders usually expect an ex-pat to live in a property they purchase, rather than renting it out. While the current economic climate and the aftermath of Brexit have opened the food for foreign nationals and international property buyers to purchase at lower prices and secure significant returns on their investments.

Lombard loans

Property owners who have a portfolio of marketable assets can gain quick access to finance through a Lombard loan. A Lombard loan can help you boost cash flow, ensuring you have the capital to satisfy financial obligations and take advantage of other investment opportunities. 

Hectocorn has extensive experience supporting residential mortgage applications for ultra-high-net-worth individuals from all backgrounds. We help you on every step of the residential mortgage process, from the moment you find your dream home to collecting the keys and beyond.

Our extensive network of private and specialist global lenders enables us to negotiate a bespoke mortgage that fits your needs regardless of your circumstances. Our relationships with specialist residential mortgage lenders ensure we can help you secure finance on any property with even the most complex scenarios, from high-net-worth exemption and interest-only mortgages to finance deals considering one or two years’ worth of accounts. This includes negotiating high loan-to-value (LTV) private bank mortgages for foreign nationals, ex-pats and non-UK residents, in some cases even up to a 100% LTV. 

As a leading mortgage brokerage, we are well-versed in navigating the process to secure personalised terms for any financial situation. So whatever your circumstances, Hectocorn can help you secure financial flexibility with the most advantageous residential mortgage terms on your dream home.