Since the financial crisis of 2008, we have seen significant fluctuations in the complex UK mortgage market with the authorities tightening lending criteria to protect market confidence. Just prior to the 2016 Brexit referendum there were signs that the UK mortgage market was showing a little more flexibility on 20% to 30% deposit requirements. However, in light of Brexit uncertainty, this move towards previous lending criteria has slowed somewhat but there is certainly more flexibility compared to the immediate aftermath of the 2008 crisis.
UK complex mortgage market trends
While the majority of our clients are looking at mortgages in excess of £1 million we believe our experience, our reputation and our contacts can also assist with mortgages of less than £1 million. On the surface, many lenders seem inflexible but mortgage market data shows that with the right collateral, the right income and the correct structure, savings can be made. Traditional UK finance mortgage approvals are relatively subdued at the moment with a lack of suitable housing stock and buyers sitting on the sidelines. This is the kind of environment in which we come into our own, create competition and flexibility to the benefit of our clients.
Adding real value to mortgage finance
There are many circumstances in which we believe we can add value to mortgages in excess of £1 million and also those under £1 million. The ability to talk with all lenders in the context of our independent status is priceless and means we can mix and match various structures and prompt competition in quiet markets. So, if any of the following situations apply to you please feel free to give us a call:-
1. Your mortgage requirements are extremely time-sensitive and require a higher level of service than offered by traditional lenders
Due to the fact we have transacted with the majority of leading mortgage providers in the UK (and internationally), we know what they are looking for, who to talk to and how to obtain the swiftest decision on your mortgage finance. We don’t cut corners but we present your financial circumstances in their best light and provide all of the information required. Historically, delays in the traditional UK mortgage market tend to revolve around misinformation and miscommunication. These are scenarios we are able to avoid!
2. You have a non-traditional income stream which may involve self-employment, pension income or offshore funds
We pride ourselves on the ability to not only present our client circumstances in the best light but also the ability to bring worldwide assets and worldwide income together. Many lenders refuse to consider various forms of non-traditional income streams but we know the parties who are most flexible and accommodating. When looking at a mortgage based around non-traditional income streams we find that the private banks are more accommodating and willing to negotiate structure, headline interest rates and charges.
3. You are a high earner looking for additional property for recreational use, other family members or part of a long-term investment strategy
As we touched on above, it is our ability to bring together worldwide income streams and assets (many of which can be used as collateral) which allows us to secure high value mortgages for our high net worth clients. In principle, our skills can be utilised for mortgages of less than £1 million and we have done this on a regular basis for new and existing clients. So, whether you are looking for a second home, holiday home or maybe an additional property investment for your children, we can structure finance to suit your situation.
4. The property in question is of an unusual structure or has residential and commercial elements
When you start mixing residential and commercial elements, we find that many traditional mortgage lenders will take a step back. However, over the years we have built up extremely close relationships with an array of private banks able to offer non-traditional mortgage finance. The key is our ability to present the best structure, sufficient collateral and highlight the value of the residential and commercial elements individually and collectively. Working together with our private bank partners we have negotiated many mortgages for unusual structures very often by “thinking outside the box”.
5. You are looking for commercial, development and bridging finance
Commercial, development and bridging finance are areas in which we excel due to the fact that many of our customers require such capital. We can negotiate the best deal around your circumstances, structure the liabilities and cash flow to suit your situation and leave open the option of refinancing at any time. While many investors fear the use of debt, we appreciate the risks but we are well aware of the potential rewards.
6. Difficulty in raising mortgage finance elsewhere
We have seen many situations where clients have been unable to secure traditional finance may be because of their residential status, the spread of worldwide assets or irregular income. It will obviously depend on the specific scenario but we have secured significant mortgage finance where many of our competitors have failed. The fact we are not tied to a group of lenders means we can investigate niche market players and private banks. In general, we find these types of lenders more flexible, more accommodating and willing to discuss non-traditional mortgage finance opportunities, unlike many mainstream lenders.
7. Using assets as leverage
Again, this is an area where we have excelled in the past and will continue to do so going forward. Our contacts have enabled us to use a whole array of different assets as collateral against mortgages including antiques, jewellery, vintage cars and much more. On numerous occasions, we have managed to bring worldwide assets together under one financial arrangement to benefit our clients.
Call us for a no-obligation chat
While we are more associated with mortgages in excess of £1 million we are more than happy to discuss mortgages of less than £1 million with new and existing customers. We believe our experience, independent status and ability to structure a specific deal around your perhaps non-traditional situation is what makes us different from our competitors. Please feel free to give us a call today for a no-obligation chat to discuss your situation in more detail and the options available.
