Investec and Coutts – Private bank mortgages looking better value for money
Private banks experienced a prolonged period of offering high mortgage rates, but their prices have improved recently.
Investec Bank has announced the introduction of a new 40% deposit mortgage, which means the bank is offering lower rates to borrowers with large deposits.
In its latest mortgage product reprice, aimed at high-net-worth individuals earning over £300,000, Investec improved rates by up to 0.62% across its fixed-term residential and buy-to-let mortgages range. On average, there is a price gap of just over 1% between its cheapest and highest rates, depending on the size of your deposit.
Coutts Private Bank offers a range of fixed rates for £1 million+, and its rates have also improved recently. Its two-year fixes are just below 4.7% for borrowers with the largest deposits, while its five-year fixes are below 4.6%.
Aaron Strutt, product director at Trinity Financial, says, “Most private banks do not publish their mortgage rates, as they either price on a case-by-case basis or offer tracker rates. Using a good broker to check that borrowers are getting the most competitively priced rates is important.
"Investec and Coutts are two of the more prominent private banks, and they have a track record of lending to international clients and financial professionals with smaller deposits. They also lend against prime properties, country homes, while potentially taking cross charges against assets."
Which lenders offer the most competitively priced £1 million+ mortgage rates?
The bigger mortgage lenders, such as Santander for Intermediaries, Halifax, Barclays, and HSBC for Intermediaries, offer some of the most competitively priced two—and five-year fixes.
Many lenders provide specific mortgage rates for wealthier borrowers looking to borrow between £1 million and £5 million.
What about other private banks offering mortgages?
Barclays Private Bank is another lender with more competitively priced rates. It offers tracker mortgages up to £10m and fixed loans up to £5m.
Butterfield Private Bank often issues mortgage funding for asset-rich and cash-poor borrowers seeking mortgages between £1 million and £20 million. It offers a range of fixed and tracker rates.
Call Trinity Financial on 020 7016 0790 to secure a private bank or high net worth mortgage or book a consultation
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.
Trinity Financial specialises in arranging £1 million+ mortgages and our team of expert advisers do everything possible to secure the cheapest rates and the fastest mortgage offers.
More of the lenders have set up specialist lending teams to agree larger mortgage loans, and they have separate processing teams to underwrite applications.
We regularly work with clients over the phone to discuss applications and confirm the documentation we will require, and we also have Mayfair based offices where we meet clients.
Click on the link to view some of the mortgages we have arranged over the last ten years. https://www.trinityfinancialgroup.co.uk/case-studies/
At Trinity Financial, we constantly monitor the £1 million+ mortgage market. Click here to view our £1 million mortgage table, which highlights the pick of the large loan rates.
https://www.trinityfinancialgroup.co.uk/mortgage-tools/million-pound-mortgage-best-buys/
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