Family Building Society has launched an interest roll-up mortgage allowing high net worth borrowers to access loans of up to £12.5m without mandatory monthly mortgage payments.

The product is aimed at borrowers with substantial assets but complex income structures, including clients whose wealth is held in property, pensions or investments they do not want to liquidate.

Loans are available from £1m to £12.5m for owner-occupied and buy-to-let properties in England and Wales.

Applicants must have net annual income of at least £300,000 or net assets worth £3m or more.

PRIVATE BANK ALTERNATIVE

Darren Deacon (main picture, inset), head of intermediary sales at Family Building Society, said: “We think this is a fabulous opportunity for brokers who have high net worth clients needing significant finance but whose assets may be tied up in illiquid pensions, properties or investments that they either cannot, or do not wish to, sell in the short term.

“Historically such borrowing facility has been the preserve of private banks, but with our intermediary reach and significant expertise in dealing with complex borrowing, it is the right time to make this product available to a much wider market.”

Mortgage terms are capped at 10 years for properties worth up to £10m and five years for higher-value properties.

The maximum LTV is 65%, calculated against the projected final loan balance at the end of the mortgage term.

As no monthly mortgage payments are required, applications will not be assessed using the society’s standard affordability model.

Instead, underwriters will consider the borrower’s credit profile, overall financial position, assets and proposed repayment strategy on a case-by-case basis.

Applications are paper-based.

DEDICATED HNW UNDERWRITING

The launch is supported by a new service promise giving brokers access to a dedicated BDM, specialist lending panel and senior underwriter, who will remain the point of contact from application through to completion.

Deacon added: “Our new service promise gives brokers greater confidence when placing complex High Net Worth cases, combining specialist underwriting expertise with a consistent, dedicated point of contact from application to completion.

“Designed to support brokers, whose clients have substantial assets and sophisticated financial needs, we provide a tailored, case-by-case approach where standard mortgage processes may not be appropriate.

“The result is a more personal, transparent and reassuring lending experience for brokers and their clients.”