Afin Bank has reduced pricing across its high-net-worth mortgage range, cutting rates by as much as 1.66% in a move aimed at borrowers whose wealth sits in assets rather than income.

The specialist lender said the changes apply across its High-Net-Worth Mortgage proposition, which is designed for so-called asset rich, income-light customers who do not meet conventional income-based affordability criteria.

Rather than relying primarily on earned income multiples, the product assesses affordability against a borrower’s net asset position. This includes liquid holdings such as pensions and investment portfolios, alongside illiquid assets including property portfolios.

The bank said it will also consider a blended approach, taking into account a combination of liquid and illiquid assets together with any provable income. The target market includes business owners, entrepreneurs and retirees with complex financial structures and significant net assets.

REVISED PRICING ACROSS LTV BANDS

For borrowing up to 65% loan to value, the two-year fixed rate now starts at 5.34%, with the five-year fixed at 5.49%. The two-year tracker is priced at Bank Base Rate plus 1.58%.

Between 66% and 70% loan to value, the two-year fixed rate is 5.44% and the five-year fixed 5.59%, with the two-year tracker at Bank Base Rate plus 1.63%.

For lending between 71% and 75% loan to value, the two-year fixed is 5.59% and the five-year fixed 5.63%. The two-year tracker is available at Bank Base Rate plus 1.73%.

All products carry a £1,495 fee, which can be added to the loan. Terms are available from two years up to 40 years. Early redemption charges apply to the fixed-rate deals, while the tracker option has no early repayment charges.

ALTERNATIVE TO PRIVATE BANKING

Tippie Malgwi (pictured), head of high-net-worth and diaspora banking at Afin, said: “These cuts make our High-Net-Worth mortgage a competitive choice for complex cases where the borrower has significant net assets.

“And that doesn’t just mean “rich” people – they could be a hardworking business owner who takes a modest income, but has invested their money in a pension or property.

“This kind of mortgage has usually only been available from private banks who also manage the customer’s wealth. Afin is different – our loans are individually underwritten and our lending decisions are based on a deep understanding of a customer’s complete financial circumstances, not just their income.

“We consider a borrower’s asset base and provide them with a discreet, personal service to help them get the mortgage they need.”