Borrowers are increasingly obtaining mortgages from the private banks rather than high-street lenders because they have a willingness to lend that isn't always true of the high street and you don't necessarily have to pay a premium on the rate.
Rates and fees are decided on a case-by-case basis, depending on your circumstances. Borrowing can be arranged on a fixed-rate basis or linked to Bank Base Rate or Libor (London Interbank Offered Rate), depending on the borrower's preference. Multi-currency options may also be available, as well as products with no early repayment charges.
The only way individuals can access borrowing from a private bank if they don't already have an account with one is to use an independent mortgage broker with contacts in this area, such as Savills Private Finance (SPF).
SPF will know whether a client is suitable for private bank lending - not everyone is - and which is the most suitable lender. Clients with complicated income streams, relying on bonuses and share portfolios, for example, or with considerable assets in property and investments but a relatively low basic salary, may find that high-street banks simply won't give them the mortgage they want but they can get funding from a private bank.
Also, those looking for a larger mortgage - anything above £500,000 - will find the high-street banks may not cater for them and certainly not at competitive rates.
The private banks want clients with excellent prospects and may insist that the client deposits money or places investments with them, although this is not always the case. Those most suitable are high-net-worth with significant investable assets of around £500,000.
For further information, please contact:
Savills Private Finance 0870 900 7762