High net worth clients may need more from their lender and their broker, so it’s important that as an adviser, you are ready and confident to deliver the right level of service.

Some clients may have professional financial relationships with solicitors or tax advisers and perhaps more complex income streams or assets to consider as part of the affordability calculation. So, when choosing a lender, it’s important to select a partner with the expertise and ability to prioritise these additional considerations with a more tailored approach.

Plenty of cases sit between private banking and off-the-shelf products, and for clients with more complicated income structures, it’s worth placing applicants with a provider who can offer an extra level of service. For mortgage applicants requiring between £150,000 to £2.5 million, Bank of Ireland for Intermediaries for example can consider rerouting or classifying an application to get this extra level of service for the attention to detail and knowledge it might require.

Closer attention and one-to-one relationship management can also be helpful to assess and work the complexities behind an application, like multiple income streams, or considering 100% of an employed client’s bonus income.

Large scale landlords look to professionalise and often place properties inside tax wrappers like limited company or special purpose vehicles (SPV) to mitigate tax. Bank of Ireland for Intermediaries is willing to assess income being drawn from these different streams for the purposes of a residential mortgage application, supporting the affordability mix.

THE BROKER VIEW

Advisers will always want a quick understanding of whether a case might work for both the client and the lender. With larger loan sizes, high net worth clients are also likely to expect a certain level of priority and service.

To speed up the process, instead of a paper-based application, brokers submitting more complex cases to Bank of Ireland for Intermediaries can email a high level bullet pointed summary to their relationship manager. This contact will then look at the case with a view to finding and structuring a solution.

They may also send the proposed solution to an underwriter for extra reassurance before outlining the proposal to the adviser. Our underwriters, for example, agree the deals on a mandated basis, leading to quicker decisions. If an underwriter has assessed the case prior to the approval in principle being submitted, for continuity purposes the case is assigned to the same underwriter through the whole application. The broker’s contact then remains the same, guaranteeing case continuity for more complicated applications.

High net worth clients may need to provide assets under management in order for some banks to feel comfortable with the overall case and offer terms to the adviser. Other lenders, such as ourselves, offer only first-charge, ‘dry lend’ mortgages depending on the product and Loan to Value (LTV) with no expectation of further business from that client.

CHANGING APPLICANT PROFILES

Working lives have changed, and incomes continue to evolve. We’re starting to see multiple income streams becoming more common as people try to meet the rising costs of living. Despite this, self-employed borrowers or those with a ‘side hustle’ continue to report greater difficulties getting a mortgage reflecting their full income.

As automated lending becomes more widespread from some UK lenders, self-employed applicants continue to be viewed as complex. Simple cases will fly through, but this won’t help the increasing number of borrowers who need extra care and attention during the underwriting process.

Expert underwriters can lean into these cases to get a better understanding of the person behind the figures and their future plans, in order to offer a bespoke approach and solution. The goal is getting inside the journey the client has taken through their life and career and the personal or professional reasons behind the property purchase.

Underwriters can assess several income streams in detail to understand their credit, bonus and work history, and take a rounded view on their likely onward financial direction.

A PRAGMATIC APPROACH TO AFFORDABILITY

Wealthier clients or those on a predictable blue chip or professional career trajectory should also expect lenders to take a more generous view of their affordability.

For example, we can offer up to five times income and look to offset liabilities against savings to take a pragmatic view on expenditure such as school fees, which is a useful add-on to help manage borrower liquidity.

Clients with Self Invested Personal Pensions (SIPP) might also find it helpful to harness a percentage of their pot on an annualised basis, stretching affordability further.

For the broker submitting a case and proposal like this, discussing it further with their relationship manager will be helpful. This allows you to get an immediate view, helping you manage the expectations of your client and any other parties involved in the deal.

Offering great service to higher net worth clients allows you to build more in depth and long-standing relationships. This in turn should provide the opportunity for long-term growth for your business and your wider proposition.

Louise Weiss is national account manager at Bank of Ireland for Intermediaries