100% LTV mortgages are back on the menu – but only for the super rich

June 16, 2020

The ongoing impact of the Coronavirus has seen many mortgage lenders pull nearly all of their highly leveraged mortgage products from the market. However, 100% loan to value mortgages are now back on the menu, the only caveat being you have to be super-wealthy to secure one.

It isn’t the first time that mortgage products requiring a small or no deposit have evaporated from the market, with a similar trend seen following the financial crash in 2008. However, their prevalence had started to grow with a 130% increase in available 95% LTV mortgage products seen last year compared to five years prior.

Some lenders were also inching ever closer to the 100% LTV mortgage with Lloyds the first to do so, launching it’s Lend a Hand mortgage in January of last year, soon followed by Halifax, although this required a loan to be taken out by a family member in order to be successful.

However, both have since shut their doors to new applicants and according to data from Moneyfacts, the total number of mortgage products on the market has fallen 51% since the start of March.

While these types of mortgage products prove popular with first-time buyers in particular, news of their return will do little to help the average home buyer as they are only available to the super-wealthy.

Enness Global, the world’s leading high-net-worth mortgage broker, has seen a number of 100% LTV products return to the market via private banks in Switzerland. However, it does require the individual to leave their ‘deposit’, typically 35% of the loan amount creating a net position of 65%, under management with the bank.

The minimum loan available is a cool £5m, with rates in the region of 1.75% dropping to sub 1.5% if the assets under management with the bank exceed the £10m mark.

Many high-net individuals won’t go through the rigmarole of moving carefully positioned assets around to place them under the management of a bank simply to secure a mortgage, so why do the super-wealthy need this 100% LTV product?

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

for sale sign london
Breaking News

More sellers looking to enter the property market

The latest research from eXp UK has revealed that an increasing number of home sellers are entering the UK market, as demonstrated by recent growth in online search interest for terms such as ‘estate agent’ and ‘best estate agent’. Previous research from eXp UK recently found that sellers started reentering the market in the opening…
Read More →
Estate Agent Talk

Non-standard home insurance cover and how to get it right

Leading insurer provides the low-down on non-standard home insurance cover and how to get it right Most home insurance policies in the UK are designed for ‘standard’ homes, but not every home is considered standard. Whether the property is built with timber frames, has a flat roof or is a listed building, it may fall…
Read More →
Breaking News

Should you change mortgage lender?

The latest research from award-winning mortgage adviser, Alexander Hall, has revealed that more than half of homeowners approaching the end of a fixed-rate mortgage are currently undecided on their future with their mortgage lender, despite notable improvements across the mortgage market over the last 12 months. The consumer insight, commissioned by Alexander Hall, surveyed 1,035…
Read More →
Breaking News

Property chains cost movers £2,000 in unexpected costs

Property ‘chain reactions’ add over £2k to moving costs on average Nearly half of home buyers who have been in property chains say they experienced delays or transaction breakdown because of related issues Problems with chains have led three in 10 to put off future moves, while one in seven say they’d only consider a…
Read More →
Breaking News

Rental demand remains resilient in 2026

The latest research from Benham and Reeves has found that around a quarter of all rental homes currently listed across Britain have already secured a tenant, highlighting continued underlying demand despite ongoing regulatory uncertainty. Benham and Reeves analysed current rental market listings to highlight current rental demand, the size of rental properties currently most in-demand…
Read More →
Breaking News

Buy-to-let lending growth matches FTBs and homemovers

The latest market analysis from Alexander Hall has revealed that buy-to-let mortgage lending has grown at an average quarterly rate of 7% over the last year, matching the pace of growth seen across both first-time buyer and home movers, as improving mortgage market conditions continue to support borrowing demand for rental properties. Alexander Hall analysed…
Read More →