Jurisdiction(s):
United Kingdom

Lending to HNWIs under English law: transaction structures (direct, SPV, trusts), key contractual terms, security over real estate and chattels, consumer credit/regulated mortgage issues, and undue influence safeguards

Published by a LexisNexis Banking & Finance expert

Practice notes

Lending to high-net-worth individuals (HNWIs)

Lending to HNWIs is not the same as financing corporate bodies, especially group structures. Unlike standalone corporate borrowers, HNWIs take on debt in a personal capacity (even where an SPV is interposed), with collateral typically comprising a blend of private and other assets (such as property, investment portfolios and luxury collectibles like art), rather than cashflow from trading operations.

This Practice Note sets out introductory guidance on the principal considerations when advancing funds to HNWIs and signposts further, more detailed material. It outlines prevalent deal structures and highlights documentary points and headline legal issues.

For deeper analysis on lending to individuals, and on obtaining security and personal guarantees in relation to the matters flagged in this Practice Note, see the following Practice Notes:

Key issues for lenders when dealing with an individual in a commercial finance transaction
Key issues in taking a guarantee from an individual in a commercial financing context
Key issues in taking security from individuals
When are consumer-related rules, regulations and legislation relevant to a commercial financing transaction?

For precedent provisions, refer to Precedent: Representations and events of default plug-in clauses for loan agreements and security documentation: individual borrower or chargor...

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Web page updated on 21/05/2026

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