High-street mortgage lenders giving the private banks competition

by Aaron Strutt

Sep 19 2014

Some of the biggest high-street mortgage lenders are now very active in the large mortgage loan market and their aim is to lend more money to high-net-worth clients.

In order to tempt wealthier clients away from the private banks, high-street banks and building societies have increased their maximum loan sizes and offered some particularly impressive rates.

Woolwich, Santander and Accord Mortgages all have generous maximum loan sizes and regularly provide specific large loan rates for mortgages over £1million.

Assets under management

Trinity Financial has access to many of the leading private banks and the majority of them like clients to invest around 50% of the loan amount with the bank as part of the transaction. This is very different from virtually all of the other high-street mortgage lenders as they do not ask for funds to be transferred to get the mortgage through.

Very few private banks will consider totally ‘dry lending’ without funds being provided for them to manage. Although for some clients this isn’t a problem, particularly if they feel their money should be generating more of a return than it is at the moment.

According to figures released from the Investment Management Association, there is around £20 billion languishing in badly performing fund accounts, particularly in the high-street banks.

With so many poorly performing funds, the private banks often attract clients by explaining how they will ensure they get a better return on their investments. 

Structured mortgage deals

Aaron Strutt, product manager at Trinity Financial, says: “The private banks are able to structure some of the more usual mortgages, especially for equity rich and cash poor borrower clients. The high street lenders are giving the private banks competition and they are starting to lure their clients away with their low mortgage rates.”

Private banking clients often like the way they are treated and the personal service they receive, although for strait forward transactions many of them are not so concerned.

If you would like help to secure a large mortgage loan through a high-street lender or one of the private banks, call Trinity on 020 7016 0790.