Securing a Mortgage Based on Client’s Net Worth Over Low Income

• Client: High-net-worth investor with substantial assets and limited conventional income
• Property: Luxury flat in Kent valued at approximately £900,000
• Challenge: Required mortgage finance despite having relatively low income, with the client preferring to retain cash and investment assets
• Finance: 67% LTV mortgage on a five-year fixed rate at 1.99% at the time

High-net-worth individuals can sometimes have substantial assets without generating a conventional level of income. This can create challenges when applying for a large mortgage, as many lenders rely heavily on declared income when assessing affordability. Enness was approached by an investor whose wealth had been built through long-term investments in stocks and shares and who was looking to purchase a luxury property in Kent.

The property was valued at approximately £900,000 and the client wanted to borrow at 67% loan to value (LTV). Although the client had sufficient savings to fund the purchase without borrowing, they preferred to retain their capital and arrange mortgage finance rather than commit a substantial amount of cash to the property purchase.

The main challenge was the client’s income profile. Their wealth was primarily derived from investments and accumulated savings rather than conventional employment income, meaning the application did not fit the affordability model used by many mainstream lenders.

Rather than relying solely on conventional income multiples, Enness identified a lender prepared to take the client’s wider financial position and substantial net worth into consideration when assessing the mortgage application. This allowed the client’s underlying wealth and ability to support the borrowing to form an important part of the lender’s assessment.

The lender was also familiar with high-net-worth borrowers whose income may not fully reflect their overall financial position. Enness presented the client’s assets and wider circumstances to demonstrate the strength of the application and the rationale for retaining capital rather than funding the purchase entirely from savings.

The resulting mortgage provided the required 67% LTV against the £900,000 property. The facility was secured on a five-year fixed rate of 1.99% at the time.

This structure allowed the client to purchase the property while retaining their existing investment portfolio and avoiding the need to liquidate assets to fund the transaction. It also demonstrated the value of identifying lenders prepared to assess a borrower’s overall financial circumstances rather than relying exclusively on conventional employment income.

The case highlights how a high-value mortgage can sometimes be structured for clients whose wealth is primarily held in investments or other assets. For high-net-worth borrowers with limited conventional income, the lender’s approach to assets, liquidity and overall financial strength can be an important consideration.

Specialist mortgage finance can help identify lenders able to consider more complex financial profiles, subject to individual circumstances and lender criteria.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.

Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise. Investment values can also fluctuate, and borrowers should ensure they have a suitable strategy for maintaining mortgage repayments regardless of changes in investment performance or income.