Coutts introduces loan-to-value mortgage pricing bands

by Aaron Strutt

Nov 10 2018

Coutts has introduced a new pricing structure changing the way it calculates the mortgage rates some wealthier applicants pay.

The private bank's new mortgage pricing system calculates the rate using the applicant’s deposit size, rather than the previous method of using one price for all borrowers providing they had a five per cent deposit.

Coutts will use three loan-to-value bandings based on 40 per cent, 25 per cent and 15 per cent deposits. The bank has a range of two, five and ten-year fixes, plus two and five-year trackers. There is also a two-year tracker rate with an offset facility.

Aaron Strutt, product director at Trinity Financial, says: “Most of the mortgage lenders have loan-to-value pricing structures where clients with smaller deposits pay more money.

“Coutts is one of the few private banks offering low deposit mortgages, and it certainly has some flexible lending criteria suitable for wealthier borrowers and clients living overseas.”

For residential mortgages up to £3 million in value, clients require a 25 per cent deposit to qualify for interest-only, rising to 15 per cent with capital and interest mortgages.

The rate changes also apply to Adam & Company private bank.

Call Trinity Financial on 020 7016 0790 to secure a large mortgage loan