Michelle Niziol, CEO of IMS Property Group

Does a High Net Worth Individual (HNWI) need a mortgage?

Michelle Niziol, the CEO of IMS Property Group, a Bicester-based property and mortgage broker firm, explains to Property Newsroom why a HNWI might need a mortgage.

Michelle has worked in the finance and property industry for more than a decade. She is an extremely successful businesswoman: after qualifying as a mortgage broker in 2005, she established her own business, IMS Independent Mortgage Solutions, which expanded to include IMS Property Solutions, IMS Letting Solutions, property buying, and portfolio management.

IMS Property Group has a team of in-house mortgage brokers, and Michelle specialises in mortgage finance for high net worth individuals. Michelle was a candidate on BBC’s The Apprentice in 2016 and currently serves as the Vice-President of ARLA Propertymark.

Many people assume that high net worth individuals don’t need mortgages, and if they do, that the bank will have no problems issuing a mortgage to a person of means.

What they fail to appreciate is that the transactions of most high net worth individuals can be more complicated. In some cases, a purchase may entail putting a down payment on a second home, while in other situations an individual may be considering purchasing a hotel or an apartment for their children to live in during university.

Because of these complications, getting a mortgage can be tricky. Michelle has broken down her best tips for getting a mortgage as a high net worth individual below.

1. Establish whether you need a high net worth mortgage

An individual who would require a high net worth mortgage fits the following criteria: an annual income of greater than £300,000, or a net income of over £3,000,000. Once you’ve established yourself as a high net worth individual, you’ll be able to discuss a mortgage with the right broker.

2. Approach a mortgage broker

Not all mortgage brokers handle high net worth mortgages, so you will need to approach a broker that specialises in this area. Make sure that you’re speaking to someone knowledgeable, accredited, and that you trust. They will be able to offer the most thorough advice about your next steps.

3. Choose a broker with established partnerships

A mortgage broker should be able to recommend other service providers to you, such as solicitors and conveyancers. Before choosing your broker, make sure that they have a network in place by asking questions. If your broker isn’t well connected, consider finding a new broker. They should have a network of foreign exchange, legal, and tax services.

4. Ask for a bespoke solution

As a high-net worth individual, it’s likely that your financial situation will be a bit more complicated. When you speak to your mortgage broker, let them know about these complications at the beginning, and be prepared to be as honest as possible about your income streams and how you would like to use the property. Armed with all the correct information, it is very likely that your broker will be able to negotiate a better deal. All mortgage brokers should conduct themselves with complete privacy and discretion, so your confidences will not be violated.

5. Investigate tax law 

Not all tax legislation is created equal, and this is especially true with property. In the UK alone, there are different taxation laws for a primary residence versus a second residence, and the same is true for residential and commercial residences. However, these nuances could mean a big increase in your interest rates and the ease with which you could get a mortgage.

Are you interested in a mortgage, but aren’t sure where to start? At IMS, our property professionals have years of experience and can help you create a bespoke solution for all your property needs. Get in touch today.

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