Butterfield bank offering mortgage solutions to high net worth borrowers
Page updated 18th November 2024.
Butterfield Private Bank is known for offering tailored solutions to high-net-worth borrowers seeking larger mortgage loans and bridging loans.
The bank offers residential and buy-to-let mortgages between £1 million and £20,000,000 to wealthier individuals and corporations purchasing or remortgaging properties in London's prime areas.
To qualify for a Butterfield mortgage, borrowers or guarantors will need to earn over £300,000 or have at least £3 million of net assets in the UK or overseas. Applicants will also need a 35% deposit.
The bank typically charges between two and three percent over the Bank of England base rate, although fixed rates are available. There is a 1% arrangement fee, and unlike many of its competitors, the lender does not require assets under management.
Aaron Strutt, product director at Trinity Financial, says: “Butterfield can lend to the owners of SPVs, offshore companies, and trusts, as well as foreign nationals buying in the UK. They must prove they are high-net-worth clients and their source of wealth.
“While more of the high street lenders are providing £1 million+ mortgages priced around 4.5% - many wealthier borrowers struggle to qualify for these deals because of their age and complex incomes. This is where private banks like Butterfield can help.”
Competition between the private banks to issue more mortgages
There are lots of private banks competing to issue more £1 million+ mortgages. Some are keen to attract overseas buyers or bankers with smaller deposits. Others lend to high-net-worth clients with land and farming estates. Click here to read about the private banking mortgage services we can help with.
Private banks vs the high street banks
More high street banks and building societies consistently offer £1 million+ mortgages to those seeking larger loans. High street lenders often provide more competitively priced fixed rates and lower setup fees than private banks. Still, they cannot offer the flexibility of acceptance criteria, high net worth income exceptions and a variety of property types as private banks.
Call Trinity Financial on 020 7016 0790 to secure a large mortgage loan, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Nationwide for Intermediaries offers a two-year fix at 4.17% for larger mortgage loans between £300,000 and £5 million for borrowers purchasing a property. The overall cost for comparison is 7.1% APRC. The fixed rate is 0.04% more expensive for remortgages.
If you borrowed £1 million on the 4.17% two-year fix, the monthly interest-only cost would be £3,475 increasing to £4,872.68 on capital repayment over a 30-year term.
This mortgage is available on interest-only or capital repayment, and borrowers need a 40% deposit to access the rate. After two years, Nationwide's mortgage will revert to a standard variable rate of 7.49% unless you switch deals, and early repayment charges apply
Call Trinity Financial on 020 7016 0790 to determine how much your £1 million mortgage would cost.
Interest-only can be a valuable alternative to full capital repayment if you want to keep your monthly mortgage payments low.
At least 50 banks and building societies provide interest-only, and many of these lenders offer £1 million+ interest-only mortgages.
The lenders are keen to attract wealthy borrowers, so more interest-only options are available with the sale of the property as the repayment vehicle.
There is not generally a premium to pay for interest-only, so the rates are the same as the capital repayment mortgages.
The high street banks and building societies will not ask for assets to be transferred to them as part of a mortgage transaction.
Even if you are looking for a £5 million mortgage, the transaction will be based on your income and outgoings, basing the application on your affordability to determine the amount you can borrow.
Private banks tend to have a minimum loan size of £1 million, and many of them request for assets to be transferred upfront. Trinity Financial has access to a host of private banks that do not require assets upfront, although they may well contact you in the future to discuss how they can help get you better returns.
• You contact one of our consultants by calling 020 7016 0790 or complete our basic enquiry form or mortgage questionnaire for a more detailed initial response.
• You tell us what you are looking for and we assess your mortgage and financial protection needs based on your monthly budget.
• We collect the information and documentation that the lenders and providers will need.
• Based on the information supplied, we provide you with illustrations for the most suitable products for your circumstances.
• We then submit the application on your behalf to secure a mortgage offer as quickly as possible. This is once you have confirmed you are happy to proceed.
• We manage the application through to completion and liaise between all involved parties such as valuers, estate agents and solicitors.
• Post-completion we are available for any questions. When you reach the end of your initial product, we are also able to discuss any further mortgage, will or financial protection product requirements.
As part of our ongoing service commitment - we will contact you at least three months before your fixed or tracker rate expires to ensure you avoid reverting to an expensive, standard variable rate.
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
