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

Breaking News

Solutions to fix construction skills

The Centre for Social Justice (CSJ) has released a report titled, ‘Skills to Build: Fixing Britain’s construction workforce crisis.’ After speaking to several organizations and having roundtables to garner a wide understanding of the sectors’ perspectives and needs, they have proposed twenty six recommendations that will fix the issues underpinning the skills crisis. Richard Beresford,…
Read More →
Breaking News

Budget Commentary – Mansion Tax, Business Rates & Planning Reform

Andrew Teacher, Co-founder at LauderTeacher, one of the UK’s leading advisors on real estate communications, investor relations and a former spokesman for the BPF, comments on the potential Budget. Mansion tax “Nobody likes paying tax, but the reality is a council tax revaluation is long overdue. Rather than distorting the market, which is what a…
Read More →
Rightmove logo
Breaking News

Budget 2025 market data & home-mover and agent insight

Speculation about property tax changes is fuelling uncertainty across much of the market Rightmove research found that home-movers would favour staggered stamp duty payments, while a poll of estate agents also suggested that staggered payments would be a preferable change to shifting payment to the seller Rightmove data on rumoured property tax changes Mansion Tax…
Read More →
Breaking News

Breaking Property News 24/11/25

Daily bite-sized proptech and property news in partnership with Proptech-X. Symple resolves four core issues in the new Renter’s Rights Act Automating compliance in the new PRS landscape   The Renters’ Rights Act has raised the bar for private landlords in England in terms of property condition, hazard resolution, evidence of compliance and regulatory registration. Symple…
Read More →
Breaking News

What does Rachel Reeves have in store for the UK property market?

With the Autumn Budget now just days away, speculation is mounting that the Chancellor, Rachel Reeves, will use property taxation as a central tool to address the widely reported fiscal shortfall of between £20bn and £40bn. As a result, the housing market has entered a period of caution, with asking prices falling 1.8 percent in…
Read More →
Letting Agent Talk

Why Property Guarantors Need Legal Advice Before Signing

When it comes to property deals, it’s natural to look for additional support, especially when you’re not fully confident about meeting the terms of the agreement. This is where a guarantor comes into play, as they step in to give the property owner some assurance. The idea of helping someone you trust can feel quite…
Read More →