What is a private bank mortgage?
Private banks such as Coutts, Hampden & Co, Arbuthnot Latham, and Handelsbanken offer mortgage lending as part of a broader wealth management relationship. Their mortgage products are not available on comparison websites and are typically arranged through a broker or directly via a relationship manager.
These lenders tend to focus on clients with high incomes, significant assets, or complex financial affairs. They offer manual underwriting, which means a real person reviews your case rather than running it through an algorithm.
Advantages of private bank lending
Private banks are often more flexible on income calculations, willing to consider net assets alongside income, and able to lend larger amounts than high street lenders. They may also offer interest-only mortgages with more relaxed repayment vehicle requirements.
The service tends to be more personal. You deal with a named individual who understands your case, and decisions can often be made more quickly. For complex cases involving trusts, overseas income, or multiple properties, this can make a significant difference.
When to consider a private bank
Private bank lending makes the most sense when you need to borrow a large amount, have complex income or assets, or require a bespoke solution that high street lenders cannot provide. If your case is straightforward, a high street lender may offer a lower rate.
Your broker can compare private bank options alongside mainstream products and recommend the best route for your situation. In many cases, the flexibility of a private bank more than compensates for any difference in headline rate.