For many of our high-net-worth clients, high-street banks simply don’t provide the answer to their funding requirements. They demand something more sophisticated, particularly if they have complicated income streams, relying on bonuses and share portfolios, for example, or have considerable assets in property and investments but a relatively low basic salary. Or they may require a large loan – anything above £500,000, which the high-street banks can’t cater for and certainly not at competitive rates.
For these clients, private banks may provide the answer. Although this is a highly specialist area and difficult to access funding unless you already have a relationship with a private bank,SPF has excellent contacts with such lenders. We often offer exclusive rates that are not available direct and can negotiate the rate and fee on behalf of the client. We can arrange funding on a fixed-rate basis, or linked to Bank Base Rate or Libor (London Interbank Offered Rate), depending on your preference. Offshore funding and complicated tax structures can also be catered for, as well as multi-currency lending and deals with no early repayment charges.
Clients suitable for private bank funding are high net worth with significant investable assets of around £500,000. The private bank will want to develop a relationship with you so you may also need to open an account with them or deposit a significant amount of savings.
Even since the credit crunch hit, private banks have demonstrated a willingness to lend that hasn’t always been true of the high street. You may assume that you would have to pay a premium for going to a private bank but this is not necessarily the case. Rates and fees are decided on a case-by-case basis, depending on your particular circumstances.
To find out whether a private bank would suit you, please contact one of our private bank specialists on +44 (0) 870 900 7762