AUM Mortgages in the Past
Traditionally, high-value property loans (generally over £ 1 million) were solely offered by Private Banks, which required assets under management (AUM) to secure this lending. These banks typically required the borrower to deposit 25% of the loan amount into their management, which provided lenders with security and a degree of confidence to lend large amounts.
This requirement was often a stumbling block for UAE residents purchasing properties in the UK market. Fortunately, competition among lenders has increased, and consequently, several lenders have entered the marketplace and started offering high-value mortgage products without requiring acceptance of AUM, or "dry lending." This means that UAE investors now have access to a variety of high-value lenders, who offer a more bespoke approach to suit their borrowing ability.
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Our AUM Mortgage Experts
Enness is all about helping UAE citizens secure high-value mortgages for investing in the UK, even if you don’t quite fit the usual asset or income criteria. Our experienced brokers dive into complex financial situations without needing to manage your assets, working hard to find you affordable lending options. Reach out to our team to discuss your unique circumstances and discover tailored mortgage solutions that can help you reach your investment goals.
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GROUP CEO
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GROUP MD
Mortgages Without Assets Under Management FAQs
What is Dry Lending?
Dry lending is a unique form of borrowing through mortgages, where you are allowed to retain your assets with other institutions and banks, rather than having to relinquish them to the lending institution itself. That way, you still have the freedom to handle your investment elsewhere, and they will continue to be factored into your affordability and interest rates. The great part? You’re not obligated to move your assets to the mortgage provider.
This method is particularly advantageous for investors in the UAE looking to purchase property in the UK, as it allows you to enhance your borrowing potential with all your global assets without interfering with your current banking relationships.
With access to more than 500 lenders, Enness leverages the competition among private banks, challenger banks, and commercial lenders to find tailored lending options that fit your specific financial situation.
Securing Mortgages Without Assets Under Management
Since 2007, Enness has built solid relationships with commercial, challenger, and private banks that consistently offer large mortgages without needing assets under management.
Now, dry lending isn’t something everyone can access; it’s typically reserved for clients who have significant, often liquid, assets that reassure lenders about their ability to repay. Lenders will take a close look at your financial profile, background, and the risks tied to the specific property you’re looking to buy in the UK.
To whom, and how you make your case, matters. While there are lenders content with direct lending without introductions, most are content with referrals from established brokers like Enness. This specialist type of finance can be extremely complicated to negotiate, especially for UAE investors acquiring in the UK market.
You can utilise share portfolios, property portfolios, and other forms of collateral to agree on more preferential interest rates and terms without needing to transfer your assets under management. Every situation is unique, and Enness provides bespoke mortgage solutions to suit your personal financial goals and circumstances.
What Do Banks Do with Assets Under Management (AUM)?
Banks are always on the lookout to invest the assets they manage, helping to grow and safeguard your wealth. You usually have a couple of options: an advisory mandate, where the bank provides guidance on your investment choices, or a discretionary mandate, where they take the reins and manage a pre-set portfolio that matches your risk appetite.
With these mandates, banks offer sophisticated financial products, open doors to global markets, and implement diverse strategies specifically designed for investors in the UAE. This approach is all about adding real value to your portfolio while also supporting your property financing plans in the UK.
Why Do Some Banks Require Assets Under Management?
Historically, banks used to possess some level of assets under management (AUM) to obtain high-value mortgages and act as a cushion to their books. For instance, if you're looking at taking a £1 million mortgage, a bank would insist that you must deposit at least £250,000 in their asset management branch.This setup gives the bank a buffer in case any financial troubles pop up during the mortgage period.
For high-net-worth individuals in the UAE who are investing in UK property, private banks also leverage AUM requirements to foster long-term, personalized relationships, providing a full suite of wealth management services alongside property financing.
However, with the rise of competition from commercial lenders offering substantial mortgages, private banks have started to loosen their AUM requirements, giving UAE clients more flexibility in securing property finance without the need to tie up assets under management.
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Enness is all about using the competition among lenders to help UAE residents snag the best mortgage deals, no matter how much you're looking to borrow. Reach out to us for a no-pressure chat about mortgages without AUM, and let’s explore the options that are just right for you!
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