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How the other half borrow – wealthy purchasers denied mortgages

wealthy

High net worth individuals are struggling when it comes to successfully applying for a mortgage, according to a lender. 

Research by Butterfield Mortgages involving 2,008 adults, including those with a combined investment portfolio of over £100,000. 

One in five had been turned down for a mortgage in the past decade – a rise of six per cent over a similar survey two years ago.

Of those who have successfully or unsuccessfully applied for a mortgage in the last 10 years, 51 per cent have been rejected at some point. 

Some 63 per cent said they struggled to get a loan because of their complicated income structures or lack of monthly pay cheques. This compares to the national average of 42 per cent. 

Almost three in five of the wealthiest respondents who had applied for a mortgage in the past 10 years said they had to wait three months or longer to hear if their applications were successful.

Butterfield chief executive Alpa Bhakta says: “As a general rule of thumb, the wealthier individuals are, the more complex their finances are likely to be. Covid-19 has only exacerbated the challenges of applying for a mortgage, meaning that many mainstream providers and big banks are simply not equipped to take on complex cases at the moment.”

Original Article from Estate Agent Today 18/02/2021