Are you a high-net-worth individual looking for a mortgage lender that understands your complex requirements and unique property needs? Private banks can provide far more than the rates advertised by high street lenders.
Bespoke private bank mortgages offer greater flexibility to suit your finances, taking into account your wealth as well as income when assessing your ability to fund your mortgage. Borrowers may even find they have access to non-standard construction mortgages and repayment plans that aren’t available through regular lenders.
Finding the right funding partner and negotiating terms and payment methods is no small feat but with the right specialists in your corner, you can secure a tailored finance plan for yourself.
What is a private bank?
A private bank is a financial institution that provides banking services to its high net worth clients, without serving the general public.
Private banks offer more personalised services, higher levels of privacy and tailored products than regular banking institutions – especially when it comes to mortgages.
Private banking is aimed at an exclusive clientele and the providers are known for their attention to detail and understanding of individual needs, providing borrowers with access to specialist property mortgages, repayment plans and other bespoke borrowing options.
Private banks offer a range of services including wealth management, asset protection, estate planning and personal banking solutions. They also provide access to private banking products, such as offshore accounts and specialised investment funds.
Additionally, they will be able to help with tailored financing options, such as flexible loan structures and secured credit lines.
Private bank Vs high street lender
Many high street lenders will not have the time or expertise to process complex and/or high net worth mortgage applications.
The brokers we deal with have established relationships with specialist private banks that are able to offer a unique, tailored perspective when it comes to assessing an applicant’s affordability.
These private banks assess each lending decision individually, taking into account a potential borrower’s assets and their overall financial situation.
We can introduce you to a broker who has decades of experience and understands precisely which lenders should be approached for these intricate cases – knowledge which can make all the difference.
Private lending solutions
Through an established network of professional relationships, our broker contacts can negotiate directly with underwriters at private banks who have a successful history of approving larger mortgage deals for our customers.
Each client is unique, with lending solutions created specifically for each person. Some of the options will include:
- Larger mortgage loans with no upper limit
- Up to 75% LTV (Loan to Value)
- Interest only options
- Residential mortgages
- Investment property mortgages
- Using retained profit as income
- Short term finance (bridging)
- Commercial finance
- Asset backed lending
- Dry lending
- Mortgage solutions for complex income arrangements
- Foreign nationals, expats and non-UK residents
- Solutions for HNW individuals who require large mortgage loans
What are the benefits of a private bank mortgage?
Private banks are much smaller institutions than mainstream lenders, and as such, they are able to offer a bespoke service to their clients. This can be extremely beneficial for those who have specific requirements or who are looking for a more personal level of service.
Private banks can offer highly competitive private mortgage interest rates, tailored loan solutions, and personalised underwriting services. They can also provide quick decisions on loan applications and offer more favourable terms than traditional lenders.
By taking the time to understand your goals and needs, private banks are uniquely positioned to create solutions that are not available from high street mortgage lenders. Furthermore, by getting to know you as an individual, they can craft a bespoke mortgage package to suit your particular requirements.
They are known for their ability to offer banking services on a discreet basis.
How do these mortgages work?
Private bank mortgages typically require a personal meeting with a banker to discuss plans, income, and assets. The lender may also request a personal recommendation from an existing client, or require that certain minimum levels of income or assets be met.
Private banks provide unique opportunities for high net worth individuals who want a tailored loan package. During the meeting with the banker, they will look at all aspects of your situation and get to know you as a person in order to provide an individualised solution that meets your needs.
Your worldwide income and assets will be assessed, and lenders will be happy to look at UK and overseas properties for security.
Are assets under management required?
There are a number of banks that do not require assets under management (AUM) but many do still ask for up to 30% of the loan amount transferred to them and held in assets.
Private Banks often offer mortgages as part of a larger strategy to acquire new clients and increase their Assets Under Management (AUM). This allows them to benefit from having more capital and assets under their management, which helps to promote the growth of their business.
So called ‘dry lending‘ refers to mortgages provided without the necessity of assets being placed in management with the lender. Rather, this process takes into account an individual’s total wealth, income and assets when determining the eligibility. Dry lending is extremely advantageous, as it offers the potential to take all of an individual’s assets – regardless of where they are held – into consideration when assessing affordability levels and repayment terms.
This is a highly competitive space and suitable options can usually be found with limited or no funds placed under management with the bank.
CONTACT A MORTGAGE BROKER
If you are ready to take the next step then we can put you in touch with a fully qualified independent mortgage broker.
