Private Bank Mortgage & Large Loans

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.