High net worth
An individual can borrow over £60,260 against a classic car outside the consumer credit rules by signing a statement of high net worth and the declaration that goes with it.
- FOR
- Certified individuals, over £60,260
- USED FOR
- Private purchases arranged under the high net worth exemption
How it works
The exemption applies where the credit is more than £60,260, you have signed a statement of high net worth, and you have made the declaration that you forgo the protections of a regulated agreement.
The statement has to be certified. It rests on your income in the last financial year, or on the net assets you held through it, and the certifier confirms it.
Under the exemption the agreement is not regulated consumer credit. The protections of a regulated agreement, including voluntary termination and the Financial Ombudsman Service, do not apply.
Terms are written around the car and your wider position rather than a credit score alone.
What a lender looks at
- 01The certified statement of high net worth and your declaration.
- 02Where the money to repay comes from, and when.
- 03An independent valuation from a recognised marque specialist or auction house.
- 04Agreed value insurance and secure storage.
Not for: Borrowing £60,260 or less as an individual, and any purchase for personal use that cannot be written under the exemption.
What qualifies as high net worth in the UK?
For this exemption the test is set out in law rather than by a lender's marketing. You qualify on either of two limbs: income of at least £300,000 in the last financial year, or net assets of at least £3 million throughout it.
Net assets are counted without your main residence or any money raised against it, and without certain pension and insurance rights. That is the part people most often get wrong, because a large part of household wealth for many people sits in exactly those places.
The statement has to be certified by someone qualified to do so, such as an accountant, and it is made for a specific agreement rather than held on file indefinitely.
Alongside it you sign a declaration acknowledging that you are giving up the protections of a regulated agreement. That is not a formality: it removes the statutory right of withdrawal, voluntary termination, and access to the Financial Ombudsman Service. You should take your own advice before signing it.
If you do not meet the test, or the borrowing is £60,260 or less, the agreement is regulated consumer credit. Send the enquiry anyway: it is handled through one of our regulated partners, and we tell you which firm before anyone contacts you.
Questions
What counts as high net worth?
The exemption is set out in law. It rests on income of at least £300,000 in the last financial year, or net assets of at least £3 million through it, excluding your main home and certain pension and insurance rights. The statement has to be certified.
Why does the amount have to be over £60,260?
The exemption for credit that is not secured on land applies only above that figure. Below it, an agreement with an individual is regulated consumer credit, and the enquiry is handled through one of our regulated partners rather than by us directly.
What do I give up under the exemption?
The statutory protections attached to a regulated agreement, including the right of withdrawal, voluntary termination and access to the Financial Ombudsman Service. You should take your own advice before signing the declaration.
Finance on this page is arranged for limited companies and LLPs, for sole traders and partnerships borrowing over £25,000 wholly or predominantly for business purposes, and for individuals borrowing over £60,260 who have signed a high net worth statement. Send us the details either way: cases outside that are handled through one of our regulated partners, and we tell you who before anyone contacts you.
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