Private banks are a key part of the high net worth mortgage market and represent a significant part of the solutions we offer to our clients.
Private banks offer a complete contrast to the mortgages offered by high street lenders which, whilst cheap and accessible, often have restrictive or fixed lending criteria.
On the other hand, private banks offer mortgages based on an understanding of the client’s personal circumstances. The deals can be very competitive, especially if the client is interested in the bank or has the ability to do further business, and can use various mechanisms to make the lending fit perfectly.
However, the private bank mortgage market can be challenging:
- Access is difficult, and banks are hard to find
- Almost everything is individually negotiated.
- The market is fragmented.
- Different bankers at the same bank can approach cases differently.
- Some banks will need assets under management or sight of a ‘wider relationship’ before they lend
- Sometimes you will need to be referred or introduced by an existing customer.
We cut through all of these hurdles effortlessly and efficiently – we know who is lending, what the variables are and the right approach to get the best possible terms.
To that end, here are some of our favourite private bank mortgage deals:
Highest LTV Mortgages with AUM
Private banks typically require borrowers to keep assets under management (AUM) with the bank to offer the most competitive rates.
Headline Details
- Mortgage type: Two-year tracker, requires minimum £5m AUM
- LTV: 85%
- Rate: 1.09% over base rate
- Arrangement fee: 0.25%
- Term offered: 25 years.
- No early repayment penalties
Fixed Rates without AUM
Private banks will typically offer both capital repayment mortgages, as well as interest-only.
Headline Details
- Mortgage type: Five-year capital repayment or interest-only
- Rate: 1.4% plus the cost of funds (0.29% five-year swap rate on the day of close)
- LTV: 70%
- Arrangement fee: 0.3%
- Term: Five-year revolving credit
Best Private Bank Buy to let Mortgage
Private banks provide competitive products for property investors letting second homes or holiday rentals.
Headline Details
- Mortgage type: Two-year buy to let tracker, requires minimum £100k AUM
- Rate: 1.85% plus base rate (0.25%)
- LTV: 75% LTV
- 75%
- Term: 25-year term
