You might be surprised to hear that when it comes to applying for debt, high net worth individuals (HNWIs) find themselves at an immediate disadvantage. This stems from the inherent complexity of their income structures and finances.
There is a general saying that the wealthier an individual, the more complicated their finances typically are. Based on my experiences working in the prime property mortgage sector, I can confirm that this saying rings true.
Typically, we find their wealth can be spread across multiple jurisdictions and locked up in assets that offer little in the way of liquidity. As a consequence, they find themselves at odds with the rigid application processes employed by high street banks when seeking new financial products and services.
Simply put, the majority of mainstream financial service providers do not have the expertise or experience required to meet the nuanced needs of wealthy individuals. In turn, this is resulting in the UK’s wealthiest being denied mortgages.
To uncover the extent of this issue, Butterfield Mortgages Limited (BML) commissioned a survey of HNWIs in January 2021. The objective of the survey was to reveal how many HNWIs have been denied a mortgage in the last decade and the reasons why this had been the case.
So, what did we find?