Private Banking consists of personalised financial and investment services and products provided by a dedicated personal banker. This is an enhanced offering that is predominantly used for High Net Worth Individuals (HNWI), meaning you have a NET asset holding worth more than £3 million, or you earn more than £300,000 NET annually.
If this is the case, then private banking could well be the right choice for you.
HNWI can find it difficult to secure a mortgage because high street lenders are notoriously reluctant to handle complex cases. They are often unable to help the individual, even though they can easily afford the repayments. On top of this, regulations have made high street banks even more restrictive, and it is harder than ever for individuals with non-standard income streams to get a mortgage.
This is when Private Bank mortgages are the correct path to take. Private Banks can choose their own lending criteria, meaning that they have the ability to assess individual circumstances and create bespoke solutions specifically for their needs, rather than needing clients to meet a strict set of requirements.
In other words, for individuals with non-standard income streams and complex borrowing structures, such as offshore companies or trusts, Private Banks provide a mortgage solution that mainstream lenders can’t.
Private Bank mortgages are usually for High Net Worth (HNW) and Ultra High Net Worth (UHNW) clients. These clients are typically those with a net asset holding of £3,000,000 plus and/or earn over £300,000 NET per annum, but sometimes there are lower entry levels. The property value and mortgage required also affect whether you are eligible for a Private Bank mortgage, as generally there is a minimum loan size of £1,000,000 plus, with lending levels usually limited by the security amount. These lenders may offer, however, lower loan amounts on a case by case basis. Our experienced mortgage advisers can assist with figuring out if you would be eligible for a Private Bank mortgage as there are many different options out there.
Benefits of Private Banking include access to some of the best products from mortgages to investments, a direct relationship manager to ensure your holdings with them are up to date and in line with your requirements and goals for the future, and more. With mortgage lending, Private Banks can also view individuals or deals on a case-by-case basis, providing much greater flexibility compared to other banks and lenders in the market, while still managing to keep their pricing at a competitive level.
Many factors can determine whether a Private Bank mortgage is right for you, including eligibility as well as your short and long-term requirements. Get in touch with our team of brokers if you are considering a Private Bank mortgage, to help you decide if it is the right path for you.
Private Bank mortgages can be both regulated and non-regulated. It depends on the asset offered as security, the ownership, and who is/will be residing there.
A large number of Private Banks will want you to put some level of Assets Under Management with them – this means that you will need to invest a certain amount with the bank on top of the mortgage amount if the mortgage alone doesn’t reach their desired level of funding. However, some Private Banks do not have this requirement and can proceed with what is known as ‘dry lending’ where they will lend on a mortgage-only basis with no further investments needed.
Generally speaking, the security property needs to be in the UK. However, with our vast amount of relationships across the Private Banking sector, we have some that will allow for lending on properties overseas. These must be in specific countries deemed acceptable and are usually higher in value and therefore mortgage amount to make them more attractive to the lending bank.
Most Private Banks will offer flexibility with regards to the borrowing entity, and often international borrowers may have requirements to borrow via company or trust structures. There are many factors to consider here and the jurisdiction of the vehicle and detail is paramount.
Note Coreco does not provide tax advice.
Lombard loans are secured against non-property assets, typically a share portfolio or other investment structures. The Liquidity of the asset is the main factor here, and depending on the detail, the interest and fees on these loans are often far more competitively priced than property loans.
Some Private Banks provide access to loans against yachts, planes, chattels, and art. Typically, larger private banks have this capacity as in-house expertise is a prerequisite for the banks to consider these types of loans.
In certain circumstances, Private Banks may also be able to offer short-term or Bridging Loans.
Commercial loans are less commonplace in the private bank market but with strong tenant covenants and a wealthy borrower, larger private banks will offer very competitive pricing.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
A percentage of the mortgage amount may be charged depending on individual circumstances. A typical fee is 1%.
Coreco Commercial is a trading style of Coreco Specialist Finance. Coreco Specialist Finance. Registered Office: 117-119 Houndsditch, London EC3A 7BT. Registered in England Number: 06851546
Coreco Specialist Finance Limited is authorised and regulated by the Financial Conduct Authority.
Some types of finance offered by Coreco Commercial are not regulated. Please contact us for more details.
Coreco Commercial advisers are experienced mortgage advisers but we are not tax advisers. Please seek independent tax advice if required before you decide to proceed.
We know that all our clients are unique, and therefore the finance you require needs a different approach. We pride ourselves on providing a client focussed journey built around your needs and goals.
Our team always expresses their professionalism through their authenticity, high level of work ethic, and can-do attitude. We always find the best way for our clients to succeed.
Our progressive and forward-thinking outlook allows us to guarantee an exceptional level of innovative advice and service, ensuring an effortless, client-centric journey in the ever-changing financial world.
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