What is a Private Bank Mortgage?
Private banking is very different to personal banking at the high street banks. It’s a form of banking that usually caters to high net worth individuals or those who have complex income and wealth streams who don’t fit the criteria of the high street lenders.
When it comes to mortgages, private banks cater to those who are looking for a lender that understands their unique needs. High street banks can be rigid in their often, ‘tick box’ criteria. Private banks consider applications on a case by case basis, being more flexible and taking into account the borrower’s income and wealth. They offer bespoke solutions.
Private bank mortgages may and do still offer options such as:
- Larger mortgage loans with an LTV up to 75%
- Interest only mortgages
- Residential and investment mortgages (i.e. buy to let and development)
- Bridging loans (short term finance)
- Commercial mortgages
As always, lending with a private bank comes with its pros and cons.
Potential benefits of taking this route are:
- They offer flexible criteria and are more accepting of complex financial streams and consider assets.
- They have more product choices such as larger mortgages, greater loan to value and interest only deals.
- They often provide a more ‘premium’ service making it more personal.
Whereas, potential drawbacks of private banks can be:
- They can be more difficult to access and have certain restrictions.
- Approval can be less straightforward.
- There may be more fees attached.
Speaking with a broker who’s experienced in this niche is paramount. They know exactly which lenders to approach in these complex cases. We are fortunate to be able to put you in contact with such brokers who are more than able to handle your enquiries in this area. Contact us at the Online Mortgage Guru on 0345 3669799 or email us via info@theonlinemortgageguru.co.uk.
