Whether you’re buying a new property or remortgaging an existing asset, finding the right mortgage is an important part of almost every property transaction. But where should you start?
Many high net worth (HNW) individuals in the UK find that a private bank mortgage offers greater flexibility, enhanced service, and perhaps even preferential rates – so this route is well worth exploring if you’re currently seeking property finance. But unlike many mortgage lenders, entering this world isn’t as simple as walking into a branch on a high street.
What is a private bank mortgage?
A private bank mortgage, quite simply, is a mortgage issued by a private lender – whether that’s a prestigious, historic institution or a modern wealth management service for global business people.
Unlike high street mortgage products, private bank mortgages tend to be negotiated and structured on a bespoke basis – considering your needs, background, existing borrowing and the asset in question – to create a perfectly tailored mortgage, all delivered with high levels of service.
Who are private bank mortgages best suited for?
Private bank mortgages are suited to HNW individuals looking to purchase a high-value property, whether that’s your dream home, a holiday bolthole, or even a rental property. Private bank mortgages can be used both by those looking to purchase a property, and those looking to remortgage.
You will often be required to open an account with the lender in question, and will typically need to meet a certain income or asset wealth threshold, although this varies from lender to lender. Many HNW individuals find that starting a private banking relationship can be extremely advantageous, opening the door to a range of other benefits or financial possibilities.
What are the advantages of a private bank solution?
Private banks have the flexibility to provide bespoke pricing. Since private banks are ultimately looking to begin a long term relationship with a client, rather than provide a one-off financial service, we find we are regularly able to negotiate with private banks on behalf of our clients for the best possible rates.
They are also more likely to display a nuanced understanding of a client’s wealth and income, which can be invaluable. The wealthier an individual is, the more complex their financial affairs tend to be. However, mainstream lenders find it harder to pick through these complex details, instead relying on ‘tickbox’ affordability criteria. As a result, they are frequently unable to offer mortgages – even to those whose actual wealth means they are capable of servicing the loan.
With a private lender, every case is approached on its individual merits and the subtleties can be discussed at length. Private bank underwriters have the experience required to handle complex affairs and can take into account everything from global income to asset wealth.
Service and speed: the added advantage of a private bank mortgage
A private bank mortgage can also be beneficial for another reason. In the private banking world, the value of long-standing industry relationships can truly be realised. At Articus Finance, our brokers have spent years cultivating relationships with lenders across the industry.
These relationships give us the ability to negotiate on price, arrange bespoke products, and offer our clients the flexibility they need to achieve their goals. It’s rarely possible to access this level of service without these relationships already in place, so engaging a broker is critical. And, when arranged with the assistance of a special HNW mortgage broker like Articus, private mortgages can be a much quicker source of finance, as there will always be a human contact to guide the process along. This removes a great deal of the stress from the mortgage process, which can otherwise be significant.
The right solution for you will always depend on your individual circumstances – but as many HNW individuals have already discovered, a private bank mortgage may well be your best possible route towards securing a high-value property loan.
If you’d like to know more about the possibilities of a private bank mortgage, a member of our team would be happy to advise you.
