Mortgages aren’t one-size-fits-all. For individuals with considerable wealth, the lending process often looks quite different from the standard route. This is where high-net-worth (HNW) mortgages come into play.
These are designed for people with significant assets or income who may not fit the mould of a typical borrower yet still require borrowing for property, sometimes in substantial amounts.
But what exactly counts as a high-net-worth mortgage, and how does it differ from regular mortgage options?
What is a High-Net-Worth Mortgage?
In simple terms, a high-net-worth mortgage in the UK is a loan tailored for individuals with a high level of wealth. These borrowers often:
- Have a large income, substantial savings, or high-value assets
- May want to borrow more than standard lenders typically offer
- Often have income that’s not straightforward, such as dividends or overseas earnings
Standard mortgage assessments may not suit their financial profile, which is why specialist lending options are often needed.
What Defines ‘High-Net-Worth’ in This Context?
In the UK, someone is generally considered a high-net-worth individual (HNWI) if they have:
- An annual income of at least £300,000, or
- Liquid assets (excluding their main home) of at least £3 million
These benchmarks align with the FCA’s criteria for high-net-worth customers under specific lending exemptions. That doesn’t mean you can’t access bespoke mortgage solutions unless you hit those numbers, but they’re often used as a starting point when discussing high-net-worth lending.
How High-Net-Worth Mortgages Differ from Standard Mortgages
The main difference is flexibility and traditional mortgages usually rely on fixed income multiples and tick-box criteria. High-net-worth mortgages, however, are far more personalised.
Here’s how they stand out:
- Income structure – Lenders may consider income from multiple sources, including bonuses, dividends, investments, or trust funds.
- Asset-based lending – Rather than just income, some lenders assess your overall wealth, property, shares, pensions, and even luxury assets.
- Higher loan sizes – These mortgages can run well into the millions, often with more generous loan-to-value (LTV) options.
- Interest-only options – Many HNW mortgages are interest-only, with flexible repayment strategies based on future asset sales or income events.
- Bespoke underwriting – Instead of computer-based approvals, decisions are usually made by real people who can interpret complex financial arrangements.
Who Offers These Types of Mortgages?
High-net-worth mortgages are typically offered by:
- Private banks
- Mortgage brokers/advisers
- Specialist lenders
- Some high-street banks with wealth management divisions
These lenders can take a more flexible approach because they deal with complex financial structures every day. Some may require assets under management (AUM) as part of the deal, meaning you may need to move investments or funds to their institution in return for the loan.
Typical Property Types and Uses
HNW mortgages can be used for a variety of purposes, including:
- Buying a primary residence, often in high-value areas like London or the South East
- Purchasing a second home or holiday property, either in the UK or overseas
- Financing investment properties or buy-to-let portfolios
- Refinancing existing loans to release equity or reduce rates
- Bridging finance for high-value homes awaiting sale
The property itself may be a unique period home, city penthouse, or countryside estate, which often makes standard valuations and lending unsuitable.
Deposit Requirements and Loan-to-Value Ratios
There’s no fixed rule when it comes to deposits, but many high-net-worth borrowers are able to access mortgages with higher LTVs than the average buyer, sometimes up to 85% or even 90%, depending on the lender and individual circumstances.
In many cases, however, HNWIs choose to put down a larger deposit to reduce costs or access better terms. It really comes down to the borrower’s strategy and financial setup.
Why High-Net-Worth Individuals Borrow at All
It might seem counterintuitive: if someone has millions in assets, why would they take out a mortgage? The answer often comes down to liquidity, tax planning, or broader financial strategy.
Reasons may include:
- Keeping cash invested rather than tied up in property
- Taking advantage of low interest rates
- Managing exposure and risk across different assets
- Leveraging property to fund other investments or business activities
In short, borrowing gives flexibility, even when the borrower has the cash to buy outright.
Things to Consider Before Applying
If you’re thinking about a high-net-worth mortgage, consider the following:
- Get proper advice – Not all lenders operate in this space, and the right mortgage adviser or broker can open doors to tailored deals.
- Understand the full cost – Look beyond the interest rate to fees, early repayment charges, and the cost of maintaining assets under management.
- Plan repayment strategies – Especially if the mortgage is interest-only, the lender will want clarity on how and when you intend to repay.
What Mortgage is Right for You?
A high-net-worth mortgage isn’t just a bigger version of a standard loan. It’s a flexible, bespoke arrangement that considers the wider financial picture, assets, goals and long-term plans.
Whether you’re buying a London townhouse, a coastal retreat, or refinancing part of your portfolio, these mortgages can offer the freedom and structure that traditional lending often can’t.
The key is working with the right lender—or adviser/broker—who understands the complexity and the opportunities that come with higher levels of wealth. Because when the numbers are larger, the small print matters even more.
