Finding a mortgage with complex income

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What you need to know


  • Asset-rich individuals with limited income may struggle to take out a mortgage with high-street banks because they don’t fit standard criteria

  • Lenders such as Rothschild & Co offer a more personalised approach and are often able to take into account investment portfolios, businesses, properties and other assets

  • Rothschild & Co seeks to understand each of its client’s individual circumstances and its lending professionals can review complex financial positions

  • If your financial circumstances aren’t complex, high-street lenders may be more cost effective

Property is often seen as a sign of wealth and success. But even if you have ‘made it’ financially, you might still require a loan to fund the purchase of a new home.

Wealth can sometimes be associated with more complex finances, with the bulk of your wealth tied up in investments or illiquid assets. Income or access to cash might be relatively limited, and this may make it difficult to demonstrate your real worth to some lenders.

Accessing a loan to buy your dream home can therefore be surprisingly difficult, even for wealthier individuals with significant assets.

High-street banks may sometimes find these unconventional financial profiles more difficult to accommodate because their lending criteria are typically based on more traditional forms of evidence of income.

People who don't tick the right boxes can struggle to access the money they need, when they need it, which may lead to missed opportunities in a fast-paced prime property market.

Cracking the case

There are many reasons for purchasing property. A new property may be the place your family calls home for years to come, or a second home in the city or countryside. It could also be a way to help your children take their first steps on the housing ladder. Alternatively, real estate can help you diversify your portfolio and create additional income streams.

There are several reasons why wealthy people may need to seek mortgage arrangements. In many cases our clients have cash to buy a property outright, however they are seeking the flexibility to put their capital into a long-term investment portfolio instead. In other cases they may have existing long-term investments, where it is undesirable to liquate those investments at the time they wish to acquire the property.

Wealthy individuals may have income that is not salary based, such as income from investments, trusts or foreign sources. They may also have specific financing needs. Not all lenders will have the tools to be able to analyse these situations outside of their standard criteria. Processes and underwriting procedures can be time consuming.

The ability to discuss your specific details and bespoke requirements with a dedicated lending professional, who is experienced in dealing with the financial arrangements of wealthy clients, can make all the difference to achieving your desired outcome and all within a much shorter time frame.

But even if you have ‘made it’ financially, you might still require a loan to fund the purchase of a new home."

‘I needed to purchase a home quickly and before refurbishment works were completed’

Clients of ours identified a dream home in an exclusive and sought-after area of central London and agreed to buy the property from the vendor after the completion of a comprehensive refurbishment. At a late stage, our clients requested that additional work be undertaken to accommodate their personal preferences.

The seller had agreed to the sale provided the clients purchased the property as originally scheduled, and therefore prior to the final completion of the additional works requested by our client.

Although the clients have substantial wealth in investments with us and elsewhere, it did not make financial sense to liquidate those investments to purchase the property.

We were able to step in and provide a mortgage even though the property was subject to ongoing refurbishment, something that some lenders can find challenging.

Because of our in-depth knowledge of the clients and their financial circumstances, we felt able to consider lending the funds required to get the deal over the line.

We took the time to evaluate the property, the renovation works, the reasons for delay and other factors.

As a result, the clients were able to secure their dream home whilst maximising their financial position.

A balancing act

Managing wealth effectively over the long term is a delicate balancing act, and lenders should work closely with clients to provide sensible loans that help them to achieve their goals.

However, it’s important to find a lender which understands that wealth means more than just income. The structure of a mortgage can take into account investment portfolios, businesses, properties and other assets, all of which paint a fuller picture of a person's overall financial standing.

For clients invested with our wealth management business, Rothschild & Co can consider residential mortgages secured by your own home or buy-to-let properties. However, if you have a simple and below £5m loan you may find a higher loan to value, or lower interest rate deal on the high street.

We’re able to offer loans to our clients as we typically have a long-standing relationship, meaning we're very familiar with their financial situation. We understand their motivations and ambitions, both for themselves and their families.

Our decisions are made efficiently and confidently, minimising delays as much as possible and avoiding unnecessary red tape, which can be key when navigating prime property markets. We will provide a dedicated lending executive to understand your needs and guide you through the process.

Finding a solution

Whether you're looking to borrow as an individual, through a trust, family investment company or other corporate ownership structure, we can create a mortgage tailored to your needs.

Rothschild & Co’s personalised approach means we can support clients with a range of requirements, even if your case is complex.

We specialise in high-value mortgages ranging from £2 million to c. £25 million (and higher in exceptional cases) in the UK and Channel Islands. Please get in touch to talk in more detail about your specific residential property lending needs.

Rothschild & Co’s personalised approach means we can support clients with a range of requirements, even if your case is complex."

YOUR HOME MAY BE REPOSSSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR MORTGAGE. Credit provided will be secured on your home. Rothschild & Co Wealth Management UK Limited. Authorised and regulated by the Financial Conduct Authority (Financial Services Register No. 218613). Registered in England. Registered No. 04416252. Registered Office: New Court, St Swithin’s Lane, London EC4N 8AL. Buy to let mortgage lending other than Consumer buy-to-let lending is not regulated by the Financial Conduct Authority.

Past performance is not a guide to future performance and nothing in this article constitutes advice. Although the information and data herein are obtained from sources believed to be reliable, no representation or warranty, expressed or implied, is or will be made and, save in the case of fraud, no responsibility or liability is or will be accepted by Rothschild & Co Wealth Management UK Limited as to or in relation to the fairness, accuracy or completeness of this document or the information forming the basis of this document or for any reliance placed on this document by any person whatsoever. In particular, no representation or warranty is given as to the achievement or reasonableness of any future projections, targets, estimates or forecasts contained in this document. Furthermore, all opinions and data used in this document are subject to change without prior notice.

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