Are you looking for a high loan to value mortgage? In the current climate where cash is king and many are looking to preserve their personal liquidity, the prospect of securing a large loan with a low deposit can be very attractive for high net worth individuals.
High loan to value mortgages typically refers to property finance where the loan is around 80% of the value or above. For example, if you wanted to buy a property worth £1 million with a deposit of £200,000 or less, this will be considered as a high loan to value (LTV) borrowing.
For context, the majority of UK high street lenders typically offer large loans of up to £1 million, where the LTV is generally between 60-75% of the property value. For loans much larger than this, and especially if you’re looking for a high LTV of 80% or above, you may need to secure a deal with a specialist lender or private bank that is adept at handling this area of property finance.
Unlike the rigid eligibility criteria of mainstream banks, specialist lenders are able to take a much more holistic view of your finances, assets, and wealth to assess your affordability.
Working with a specialist high net worth mortgage broker such as LDNfinance is imperative to ensure you have access to private lenders that can cater to your individual circumstances and secure you high LTV borrowing at a competitive rate. Our expert brokers have strong, long-lasting relationships within the private lending space and a deep understanding and knowledge of the rates, products, and criteria that come with it.
Our relationship with you
We source high-value UK property finance over £1 million for clients across the globe. With access to a huge number of mainstream, private, and specialist lenders, our team is perfectly positioned to secure you the very best bespoke solution for your needs, whether you’re purchasing a multi-million home in Belgravia, remortgaging an existing asset to release equity, or looking to expand your high-value buy to let portfolio.
Our strong relationships with both our valued clients and trusted lenders mean we are expert problem solvers who can think creatively about your case and get the deal over the line. We regularly secure complex, high LTV mortgages for expats, foreign nationals, and self-employed individuals and are proficient in navigating complex scenarios.
We believe relationships are key to solving complex cases and HNW acquisitions, and so we have worked hard to develop strong bonds with our network, built on trust, to ensure we secure the best possible terms for your circumstances every time.
Working alongside the rest of your professional outfit – from accountants to solicitors – your personal adviser will present your case to our trusted network of private banks and specialist lenders in the best possible light. Once in possession of your whole story, your lender will take a holistic view on your complete wealth and asset profile, and a bespoke approach to your case.
What to consider when securing a high loan to value mortgage
It is important to note that lenders use the LTV ratio to quantify the level of risk associated with lending. Therefore, the higher the LTV, the greater the risk, and naturally, the higher the interest rate.
As such, there are some important things to consider when securing a high loan to value mortgage: many traditional banks are unable or unwilling to offer high-value loans. This is because interest rates can be high and there are a number of factors that can affect your eligibility when securing one.
One such consideration will be the assets you can use as collateral for the loan, with many private lenders willing to accept sufficient cash flow or other assets to cover their liabilities. By placing Assets Under Management (AUM), the lender has greater security to offset the associated risk and this can often lead them to offer a higher LTV or a more favourable rate.
The reasoning as to whether you should get high LTV property finance is a personal one, and will wholly depend on your specific set of circumstances. For example, it might be that you would prefer to keep a hold of your liquidity for other strategic investments or property acquisitions.
However, it can sometimes be the case that you can secure cheaper borrowing if you are willing to pursue a lower LTV loan. In order to assess which is the best and most convenient route for you, it’s imperative that you instruct the expert advice of a trusted broker such as LDNfinance to help navigate these tricky waters.
At LDNfinance, we have a wealth of experience in securing borrowing of 80% LTV, 90% LTV and above for our clients at attractive rates. Working closely with our trusted network of private banks and specialist lenders that take a more holistic view of your overall wealth, our strong relationships will ensure you receive the perfect solution to help you realise your property finance aspirations, no matter the complexity.
Let’s discuss your financial position and arrange a high loan to value mortgage to suit your circumstances.