High Net Worth Individuals

Banks have a range of ways to determine whether an individual is a High Net Worth Individual (HNWI) or an Ultra High Net Worth Individual (UHNWI). Some base it on a client’s net assets to determine which part of their business a client is funnelled in to with others using their total assets or borrowing requirement as a guide. The reality is that there is a broad range of clients who can benefit from the services and products that are available in this sector. 

Regardless of the method used to determine the client’s home within a bank they will ultimately receive better pricing, far better service and also a more flexible approach will be taken when assessing their requirements.  

Since we began trading in 2007 we have modified how we operate with the client, and not the transaction, becoming the main driver. This coincides with the lender's increased scrutiny of prospective borrowers which is focused on the conduct and track record of an individual, family or company. This has always been an important part of a lender's underwriting process but now more than ever a detailed and thorough assessment of a client’s professional history is pivotal.    

Despite being a high net worth family or entrepreneur some borrowers of this calibre may still struggle to secure the flexible and finely priced lending they require. The cost of funds remains low but some lenders apply their own internal cost of funds and on average interest margins have increased. Many banks endeavour to provide bespoke products or claim to have no products whatsoever and just design the product around the borrower but the reality is that each lender has their own credit policy restrictions and internal frustrations.

We are currently focusing on methods to reduce the lender's fees and interest margins that our HNWI’s need to pay for their debt. This process has resulted in an increase in the range of options we can now offer to clients with many reducing the interest margin on borrowing to below 2% over the cost of funds. Some facilities are semi secured and others can be treated as rolling credit facilities or “war chests” so clients can acquire/dispose of property or businesses.

Historically many additional personal purchases such as boats, cars and property abroad were funded by the client's retail bank manager. In some cases yachts, helicopters and villas were bought by the client from the pre-approved overdraft without any security being taken by the bank, needless to say these days have gone but the opportunity to acquire these personal trappings still remains. In the past we have secured funding for all of the above asset types and with most asset classes at comparatively low values we are able to support clients who seek to acquire loans for purchases or who simply want to capital raise from existing assets. 

Over the past two years we have sourced and structured competitive funding solutions for our clients. Through our restructuring and refinancing we have seen clients have many millions written off from their orignial loan balances. Others have simply refinanced to a more stable bank and a competitvely priced long term loan to ensure they continue to trade and grow their business without being reliant on a contagious lender. In another case we devised an interest rate arbitrage which included a cash levered loan to raise a larger loan than would normally have been possible if a simple refinance was utilised. These examples are recent references to how we have assisted clients with the overriding message being that we will continue to devise strategies and methods which will benefit our clients. 

Our role in the process is to not only short circuit the process to quickly lead the client to the door of the most suitable lender but to also recognise which banks will provide the client with the flexibility, firepower and service they seek. Ensuring that a client receives the best return on their deposits and also the leanest margin on their credit facilities can take more than one provider so we firmly focus on securing the best facility for each and every requirement. 

In this particular space we provide clients with access to facilities for: Residential mortgages, Buy to Let or Residential Property Investment loans, Asset finance for Boats or Cars, Sharia Finance, Revolving Credit Facilities, Lending against share portfolios, Hunting Funds or "War Chests", Deposits and Credit Lines. 
 
Please contact us for further information on how we can help you secure competitive products and pricing.