| Loan amount | £2,000,000 |
| Purchase price | £2,850,000 |
| Loan-to-value | 70% |
| Property type | Period family home |
| Location | Highgate, London (N6) |
| Borrower | Company shareholder pre-IPO |
| Term | 25 years interest-only |
| Rate | 5-year fixed |
| Lender type | Private bank |
| Income | Pre-IPO equity stake |
The Story
We were approached by a client who had a minor shareholding in a company which was about to be floated on the stock market. This IPO would bring the client a substantial amount of wealth, though it was not set to happen for a few years.
The Challenge
The client was employed via the company going through the IPO. His salary was nowhere near what was needed for mortgage affordability at the required borrowing level. However, he wished to purchase his dream home for himself and his family now.
The Solution
We worked with our client to present information to various Private Banks about his shareholding in the company and the upcoming IPO.
We held numerous zoom meetings with the client and our preferred bank, and through this process, the lender was able to get comfortable with our client’s situation and were then able to agree a mortgage over a 5 year term on an interest-only basis at 2.79%.
Our client was confident the IPO would be completed within the next 5 years, at which point he could fully repay the mortgage balance. This has enabled him to purchase the home he dreamed of for his family now, rather than having to wait for the IPO to complete.
Mortgage Broker For Company Shareholders
For more information on mortgages for company shareholders or to speak to us about general mortgage advice, please contact a member of the Fox Davidson team today. Email enquiry@foxdavidson.co.uk or call us on 03300 100313
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, high net worth mortgages, private bank mortgages, complex income mortgages.
Completed transaction. This case study describes a live deal arranged by Fox Davidson. Client details are anonymised and figures rounded.
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.