Words: Ashley Rigg

Published: 3rd November 2009


Top-end mortgages – It’s not enough to be rich

Top-end mortgages – It’s not enough to be rich
To secure a big mortgage it is no longer enough to be a mere millionaire reports Wealth Bulletin. Lenders are favouring the super rich with substantial assets in their portfolios and new business to offer.

Simon Gammon, head of Knight Frank Finance, the finance advisory arm of the estate agent, says: “For the right client, a private bank may offer a good interest rate of around 2%. But you have to be wealthy enough to put down a hefty deposit, have a spotless track record, have other interesting assets like trusts, businesses that may need selling in future and money in deposit that may need managing – it is not enough to be rich.”

Two tier market

As we reported last week, UK banks are under huge pressure to lend money but will only lend to “safe” individuals creating a two tier market where a minority have money to buy “anything” and the mass market struggles to afford mortgages on even competitively priced property.

Full story from Wealth Bulletin.

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