Does Handelsbanken offer decent mortgage rates? and what is the mortgage acceptance criteria?

by Aaron Strutt

Oct 23 2023

Handelsbanken offers a wide selection of residential, buy-to-let and specialist mortgages often to wealthier clients.

The bank aims to attract wealthier individuals, family units, business owners or private individuals with multiple sources of income. It regularly lends against unusual properties or country homes with land or stables and provides a bespoke service. 

Handelsbanken typically offers a range of two, three, four, five and ten-year fixed-rate mortgages plus a selection of (Handelsbanken) Base Rate Trackers.

It provides offset mortgages, residential development Loans and self-build mortgages, plus current account mortgages, bridging loans, foreign currency mortgages and consumer buy-to-let mortgages used to let homes to family members.

How many branches does Handelsbanken have? 

Having opened its first branch in 1982, Handelsbanken has grown to a network of more than 160 branches in Great Britain, serving personal and business customers with their banking needs.

Two branches are near Trinity Financial - one in Mayfair and the other in Islington. 

The bank has a reputation for financing clients with more complex financial situations. Also, borrowers buying unusual properties like tenanted annexes, holiday homes and second homes, rural homes with agricultural ties, equestrian properties and mixed-use or non-standard construction properties.

Is Handelsbanken a private bank? And how competitively priced are its mortgages? 

Handelsbanken is a private bank which works with brokers like Trinity Financial to arrange mortgages. Its mortgage rates are more competitively priced than some of the high street lenders and many of the other private banks with similar propositions.

Its most competitively priced deals are available to borrowers with 40% deposits. These two and three-year fixed rates are priced around 5.35%, while its unusual four-year fix is around 5.15%. The five and ten-year fixes are both below 5%. There are options if you have a smaller deposit.

Handelsbanken's booking fees are lower than other private banks. For mortgages up to £500,000, the fee is £250. This rises for mortgages between £500,001 and £1 million to £375, and for mortgages over £1,000,001, the fee is £500. 

How do Handelsbanken's tracker mortgages and offset mortgages work? 

The Handlesbanken tracker mortgage follows its base rate, which is not linked to the Bank of England base rate. This rate is 5.75% rather than the current 5.25% Bank of England base rate.

Unlike many other lenders, the bank has one, two, three, and five-year tracker rates priced around six per cent, and they do not have any early repayment charges or product arrangement fees.

Handelsbanken has a range of offset tracker mortgages, again available on two-, three or five-year tracker rates not linked to the Bank of England base rate. 

Borrowers with these mortgages can offset the whole mortgage account thanks to a recent criteria change; this used to be limited to 50% of the mortgage balance. The banks states offset mortgages may not be appropriate if a customer is likely to need access to (all or majority) of savings in the short or medium term. Also, if they have more expensive debts elsewhere, it could be more financially advantageous to use savings to pay off or/reduce the debt rather than offsetting.

Call Trinity Financial on 020 7016 0790 to secure a Handelsbanken mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change

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