The Sunday Times - Millionaire mortgages hit the high street

by Aaron Strutt

Jul 14 2010

High street lenders are offering their best rates to house-buyers in the market for large mortgages - even undercutting private banks for the first time since the credit crunch.

Brokers report that cheaper rates can now be found on the high street than at most private banks, as mainstream lenders ramp up competition in the jumbo loans market.

Private banks

Wealthy borrowers hoping to buy property or remortgage flocked to private banks as big loan credit dried up on the high street at the height of the banking crisis in 2008-9.

Private banks are still the better bet for asset-rich, income-poor borrowers, those with small deposits and borrowers with a high level of bonus income. However, rates are increasingly less appealing - many are linked to Libor, which is a wholesale borrowing rate 0.2 percentage points higher than Bank rate.

Aaron Strutt of Trinity Financial, a broker, said: "Coutts requires customers to open a current account and the promise of investment business - if not now, in the future. Ideally, you will have £250,000 under-investment and Coutts would not charge a fee for banking with them."

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