| Loan amount | £3,200,000 |
| Purchase price | £4,850,000 |
| Loan-to-value | 66% |
| Property type | Grade II listed manor house |
| Location | Cotswolds (GL55) |
| Borrower | HNW entrepreneur |
| Term | 25 years interest-only |
| Rate | 5-year fixed |
| Lender type | Private bank |
The Story
Fox Davidson was approached by a high-net-worth entrepreneur looking to purchase a Grade II listed manor house in the Cotswolds, valued at £4.5 million. The client, a tech startup founder with fluctuating income wanted a £3 million interest-only mortgage to preserve cash flow for new business ventures.
The Challenge
The property’s historic status meant many lenders were hesitant due to potential maintenance costs and resale risks. The client’s income was complex, primarily derived from irregular dividend payments and carried interest from private equity investments, making affordability assessments difficult. Additionally, the client insisted on a 10-year fixed rate to lock in payments long-term.
The Solution
We secured funding with a private bank lender specialising in high-value, unique properties. They structured a £3.2 million interest-only mortgage at a competitive fixed rate for 10 years, at 66% LTV. Putting together a detailed financial profile, including future dividend projections and liquid assets, we presented a compelling case to lend, one which was accepted by the lenders credit committee. The deal closed within 11 weeks, allowing the client to secure the manor house.
Fox Davidson work with clients to secure funding on property in the UK. We work by phone, email and video. We also have offices in Bristol & London.
Frequently asked questions
What is a high net worth mortgage?
A high net worth (HNW) mortgage is assessed under the FCA’s high net worth rules rather than the standard affordability test. It is available to borrowers with net assets over £3 million or annual net income over £300,000. Lenders read the net assets test literally and include the equity in your main home, and on a joint application only one of you needs to meet it.
How does HNW mortgage assessment differ from a standard mortgage?
HNW assessment is whole-of-wealth based rather than income-multiple based. Lenders consider total assets, liabilities, liquidity, income, and lifestyle costs, then negotiate loan size based on the overall financial picture.
What loan sizes are available with HNW mortgages?
HNW mortgages typically start at £1 million minimum and have no upper cap. Loans of £5 million to £20 million are routine for qualifying clients. Loans above £20 million typically involve syndicated lending or relationship-driven arrangements with private banks.
How long does an HNW mortgage take to complete?
HNW mortgages typically complete in four to ten weeks. Mainstream HNW lenders are at the faster end. Private bank cases involving committee approval, complex structuring, or offshore elements can take eight to twelve weeks.
Further reading: large mortgages, large acreage mortgages, high net worth mortgages, listed building mortgages.
All rates and terms are indicative and subject to individual assessment, lender criteria and property valuation. Your home may be repossessed if you do not keep up repayments on a mortgage.
High net worth mortgages under the FCA high net worth definition. Private bank and specialist lender access.