If you are a high net worth (HNW) individual looking to begin a private banking relationship, taking out a mortgage with a private bank can often be an ideal entry route. If this sounds like something you are currently considering, Fitch & Fitch have a lender that could be an excellent option for you.
This product is a 5-year fixed rate at an interest rate of 2.64% (as of 27/08/2018*), available for loans over £1million, offered by a prestigious private bank. With the Bank of England (BOE) increasing base rate to 0.75% in last meeting of the Monetary Policy Committee (MPC) a 5-year fixed rate is an ideal way of limiting your exposure to rate rises for the foreseeable future.
Most interestingly, this product is available without placing assets under management. Private banks commonly request that mortgage borrowers invest a certain amount of assets with the bank—for example, listed stocks, cash, or pensions—for them to manage and invest elsewhere. However, this is something that clients are often reluctant to agree to as they either already have someone managing these assets, or they prefer to manage them themselves.
This funder is ideal for clients who have a good income and asset base, but do not want to place funds with the lender as a condition of borrowing. In comparison to other lenders who are willing to offer a mortgage without assets under management, this is an extremely competitive rate—one of the best on the present market. The maximum loan to value (LTV) for this product is 80%.
Fitch & fitch have worked with this lender on numerous occasions and have an excellent relationship with their team, enabling the application process to move along smoothly.
Private banks have been increasingly reducing their asset requirement when offering large loans, in order to remain more competitive as the high street raises their lending caps. If you’d like to know more about securing a large mortgage without assets under management please feel free to contact us, we would be delighted to discuss your requirements over a coffee.
*Subject to criteria and underwriting.