Afin Bank has unveiled a new mortgage range aimed at high net worth borrowers, enabling them to use their wider asset base to demonstrate affordability.
The proposition, branded Afin Premier, allows clients to include assets such as pensions, investments, shares, real estate holdings and even fine art or classic cars in affordability assessments.
It is designed for customers who may have substantial wealth but a lower declared income than would normally be required for the size of loan they seek.
The bank said the product would be open to all intermediaries it works with, contrasting with the private banks that have traditionally dominated this niche.
Tippie Malgwi, business development director at Afin Bank, who drew on his experience as a private banker in shaping the proposition, said: “This is another example of Afin Bank supporting underserved customers. Standard mortgage methodology understandably focuses on income, but for many high net worth clients their wealth and affordability is in their assets, as opposed to their earnings.”
AFFORDABILITY ASSESSMENTS
He added that bespoke affordability assessments, which take into account an applicant’s total wealth, can offer a more realistic reflection of their ability to service a mortgage than automated models based solely on income.
Afin Premier will be available across the bank’s full range of residential mortgages for first-time buyers, home movers and those remortgaging in England and Wales. Products include fixed rate or flexible tracker options, with the latter carrying no early repayment charges. Borrowers can also choose between repayment and interest-only arrangements.
Alan Davison, chief commercial officer at Afin Bank, added: “From speaking to brokers they tell us the number of clients that fall into the high net worth category is growing every year, especially when it comes to factors such as intergenerational wealth.
“However, their options for getting a mortgage are limited as many mainstream lenders won’t support them and they don’t necessarily want to move to a private bank.
“Afin Premier embodies our mission to support customers who, because of their circumstances, are underserved by bigger lenders. At Afin, high net worth borrowers will be treated as individuals, with a straightforward and pragmatic approach to underwriting, to help them get the mortgage they need.”
Afin Bank, which launched in July, offers residential and buy-to-let mortgages to customer groups often overlooked by mainstream lenders, including foreign nationals, the self-employed, professionals and now high net worth individuals. It is backed by WAICA Reinsurance Corporation, one of Africa’s largest reinsurers.
