Need a large loan but don’t want to disrupt your current wealth strategy? Family Building Society’s Interest Roll-Up Mortgage offers eligible clients another way to borrow.
You may have significant wealth tied up in property, investments, pensions or a business, but don’t have a regular income that fits standard mortgage checks. Selling assets to raise money may not suit you, especially if you want to keep them as part of a longer-term plan.
Family Building Society’s High Net Worth Interest Roll-Up Mortgage is designed for these situations. It lets eligible borrowers take out a large loan without making compulsory monthly mortgage payments. Instead, the interest is added to the amount owed (if not paid monthly). The loan and any accumulated interest must be repaid later, so the total debt can grow over time.
The mortgage could help someone who needs money for a property purchase, a business opportunity, estate planning or another significant expense, but would prefer not to sell investments or other assets to raise funds.
Loans typically range from £1 million to £12.5 million (more depending on your circumstances). Applicants must meet the Financial Conduct Authority’s definition of High Net Worth and have either a net income of £300,000 or net assets of £3 million.
The mortgage is available on homes and buy-to-let properties in England and Wales, with terms of up to ten years. The property must be valued at no more than £10 million.
Repayment plan
You also need a clear plan for repaying the loan. This might involve selling a property, accessing investments or pension funds, or using other assets. The lender considers each applicant’s overall finances and how they intend to repay the loan.
This type of borrowing is not right for everyone. As unpaid interest is added to the loan, the amount owed can increase and reduce the value of your assets. Anyone considering it should understand the costs and have their repayment plan carefully assessed.
The mortgage is aimed at people with substantial assets and more complex finances who need access to money without relying solely on regular income. A commercial lending specialist can help assess whether it suits your circumstances. We’re here to help.
Les Pick, Sales and Operations Director at MB Associates, says: ‘Family Building Society’s new High Net Worth Interest Roll-Up Mortgage is a welcome addition to the market and highlights how lenders are increasingly recognising the needs of borrowers whose financial circumstances don't fit traditional mortgage criteria.
‘For many high-net-worth individuals, wealth isn't necessarily reflected in their monthly income,’ adds Les. ‘Significant assets may be held in property, investments, pensions or businesses, and releasing capital by selling these assets may not always be the most appropriate financial decision.
No compulsory monthly repayments
Les adds: ‘The ability to borrow substantial sums without compulsory monthly repayments provides an interesting alternative, particularly for those looking to preserve investments, manage liquidity or support longer-term financial planning. However, this is a specialist product that requires careful consideration. Rolled-up interest can significantly increase the outstanding debt, making a credible repayment strategy essential.
‘At MB Associates, we welcome innovation that provides greater flexibility and choice for borrowers. This product demonstrates why specialist mortgage advice is so important, particularly when dealing with complex financial arrangements where traditional lending solutions may not be suitable.’