Bringing you live news and features since 2006 

UK HNWs frustrated by struggles with high street banks


UK high net worth (HNW) individuals are struggling to secure credit from high street banks, new research from Butterfield Mortgages Limited (BML) has revealed.

The prime property mortgage provider surveyed more than 500 HNWs – all with a net worth over GBP1 million – about their experiences of securing finance from banks. It found that as many as 12 per cent of the wealthy individuals quizzed have been rejected for mortgages in the past decade.
BML’s study revealed that 79 per cent of HNWs find the process of applying for a mortgage with a bank too rigid, saying they apply “tick box” methods that fail to recognise unique personal circumstances. 
Complicated financial profiles are one of the main challenges for HNWs when securing credit, with their wealth often invested into property or illiquid assets. Indeed, 44 per cent said they have found it inherently difficult to access credit because their capital is tied up in existing real estate investments, while 38 per cent struggle to get mortgages from banks because they do not have standard monthly paycheques.
Furthermore, 60 per cent believe it is becoming increasingly difficult to secure a mortgage for a non-primary residential purchase. In response, two in three (67 per cent) UK HNWs have lost confidence in high street banks, feeling they do not cater to the needs of proerty investors and buy-to-let landlords. 
To overcome these challenges, the vast majority (73 per cent) of wealthy individuals rely on brokers to help them find the lenders that cater to their needs.
Alpa Bhakta, CEO at BML, says: “It may come as a surprise that of all the demographics, the UK’s wealthiest people often find themselves at an immediate disadvantage when it comes to applying for credit from banks; be it mortgages or credit cards. 
“In reality, the rigid “tick box” methods applied by many conventional lenders are not compatible with HNWs’ unique and often complicated financial profiles. To overcome these challenges HNWs need to seek out brokers or lenders who can commit the necessary time and expertise to understand their situation and, in turn, deliver mortgages that meet their specific needs.” 

Latest News

European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by