On average, those buying at the very top end of the market through Enness put down a mortgage deposit of 40% as it enables them to secure the best rates and products at that threshold of the market.
Enness Global has taken a look at what this 40% deposit equates to on the average property entry price of the top 1% of homebuyers and how it differs across 17 of the most prestigious property playgrounds of the super-rich homebuyer.
With a property entry point of nearly £20.5m, nowhere says top 1% like Moncao and it’s by far the most expensive pocket of the global property market. A short supply of space and available properties means that even the most modest of homes can command a huge price tag.
A 40% mortgage requirement for the top 1% homebuyer based on current values comes in at an eye-watering £8.185m, more than most could ever dream of buying an actual house for.
Hong Kong is home to the second-highest deposit for the very top-end homebuyer. The average entry point of a top 1% homebuyer is currently £5.425m and those placing a 40% deposit in order to secure a mortgage are doing so to the tune of £2.170m.
HNW homebuyers in Singapore rank with the third-highest mortgage deposit at £1.643m, while in Sydney (£1.333m), London (£1.240m), LA (£1.209m) and New York (£1.116m) they’re also placing a deposit of over £1m.
Mumbai and Cape Town are home to the lowest property entry price for the top 1% of global homebuyers at £465,038. Even still, the average HNW will place a mortgage deposit to the tune of £186,015.
Managing Director of Enness Global Mortgages, Hugh Wade-Jones said, “It might seem strange that those with the means to buy a twenty million pound house would opt to finance it through a mortgage. However, with the current market still presenting some unheard of rates of interest for those with the financial foundations to secure them, it actually makes very good business sense.
There are a wealth of private banks that will offer bespoke deals in these instances and by opting for this route, you can not only secure an outstanding long-term rate, but it also opens other doors of opportunity further down the line.”