Interest-Only Mortgage for UHNW German Investor

GROUP MD

Toby Johncox

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Key Figures: 

• Client: UK Resident & German National 
• Property type: Residential Property 
• Property Value: £7,000,000
• Loan Amount: £5,600,000
• LTV: 80%
• Interest rate: 2.79% fixed, 10 year term, interest-only

Here at Enness, we regularly broker million-pound-plus mortgages for HNW investors and entrepreneurs who have generated their wealth from what can be considered a high-risk business or industry. In this case, our client was a UHNW investor with shares in several publicly traded companies and private companies in Germany, the United States, Australia and Canada. Their investments were focused on AI, crypto assets, blockchain-related business models, biotech, as well as psychedelics. 

The property in question was a modern penthouse in an iconic London tower worth £7 million, which the client had previously rented. The client was willing to put down £1.4 million as a deposit and was looking for an interest-only mortgage that allows you to make monthly payments that just cover the interest on the money borrowed. This means the full mortgage amount is repaid in one lump sum at the end of the mortgage term or when the property is sold. 

Despite being one of Europe's most prominent investors with a significant net worth, the client would be considered as a high risk due to their connection to cryptocurrencies. In a scenario like this, knowing which lenders are comfortable with particular industries will be vital for the approval of the application. Here at Enness, our collective knowledge and experience come from regularly and consistently doing this type of work for years and years.

Following a careful review of the client's financial situation, we approached a private bank with a clear presentation of facts to help the lender understand the actual risk. When we see an avenue that will deliver a great outcome for the client, we will fact-find and present the lender with a detailed plan of action to consider. The private bank was confident with the client's background and was hence able to offer an 80% LTV mortgage with a very competitive term. The product was interest-only, which suited the client's requirements perfectly. 

Specialists at the top end of the market, we can negotiate every type of large mortgage for investors, entrepreneurs and business owners. To discuss your scenario, get in touch today.