Private Mortgage Lenders
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Bespoke mortgage solutions from a private lender
We can offer:
- Bespoke lending solutions from £500,000 to £25M
- Large mortgage loans up to 95% LTV (Loan to value)
- Uncomplicated approach to income & wealth
- Interest Only options
- Private bank mortgages for residential and investment properties
- Options for short term finance (bridging), buy to let, commercial and development
- Mortgage solutions for complex income arrangements e.g. foreign currency, multiple income sources, family trust income, & using company retained profits
- Solutions for HNW individuals
- Lombard lending from £2m
- Offshore solutions for UK expats, non domiciled UK residents, UK residents earning in a foreign currency and foreign nationals
- Independent service & expert advice
Read our Full Guide To High Net Worth Mortgages.
The Challenge For High Net Worth Individuals
High street lenders usually require a larger deposit when it comes to higher borrowing or large mortgages over £1 million.
Many high street lenders will typically cap lending at 70% to 75% LTV (loan to value). For example, as a borrower on a central London property priced at £5 million, you would be expected to deposit £1.25 million to progress the deal.
This can be a sticking point for our clients who want to maintain cash liquidity but, from an affordability perspective, can easily afford to borrow at a high level.
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Alex Chambers
Senior Private Client Adviser
For some of our HNW clients, a private bank lender will offer the best solution not only for their immediate borrowing needs but for their longer-term wealth management. This should be a long-term relationship that lasts for many years, so it makes sense to get an introduction to the private bank that will suit you best.
Our Solution
The good news is that we work with private mortgage lenders who take a more bespoke approach. We can implement lending solutions tailored to your needs.
This often means that you can secure a mortgage at a higher loan to income ratio via a private bank (for example, six times your salary or even higher) and at a higher loan to value ratio due to particular high net worth exemptions.
Many of our clients want to work on an interest only basis.
Typical high street lenders often cap the amount that can be borrowed on large loans over £1 million, restricting the interest-only portion to anything from 50% to 75% LTV.
We work with private lenders who examine your full financial profile, which means we can often source bespoke lending solutions.
We also include plenty of case studies to showcase precisely how they work in real-life scenarios.
Written by: Sam Hodgson
Do Private Lenders Offer Better Mortgage Rates?
Private banks may offer competitive mortgage rates, but whether they are "better" depends on what you’re looking for. Private banks cater to high-net-worth individuals and typically provide personalised services and tailored financial solutions.
Private banks may offer customised mortgage solutions tailored to the specific needs and financial profiles of their clients. This could include structuring loans with unique terms, such as interest rate adjustments based on investment portfolios or relationship discounts for existing clients.
They usually prioritise building long-term relationships with clients. As a result, they may offer preferential mortgage rates or fee waivers to clients with significant assets under management or other banking relationships.
Private banking clients may have more flexibility to negotiate mortgage rates based on their financial standing, investment portfolio, and overall relationship with the bank.
If you’re a high-net-worth individual, it may be the case that you have a complex income, or you may have assets overseas. In this case, a private lender can take a more accurate view of your wealth, which can lead to more attractive terms and rates.
How Long Does a Private Mortgage Take to Arrange?
The timeline for arranging a private mortgage is around six weeks, depending on the case's complexity.
Private lenders are typically more flexible and will be more familiar with complex circumstances associated with high-value cases. They are also renowned for exceptional customer care, so mortgage cases with private lenders can be pushed through more quickly.
However, like standard mortgage cases, private lender mortgages can still be subject to delays that may extend the wait.
What are the Eligibility Criteria for a Private Lender Mortgage?
In the UK, private lenders typically have their own eligibility criteria. Because private lenders often offer bespoke financial products, eligibility is less stringent than with high-street lenders.
However, private lenders typically only work with high-net-worth individuals. It’s also important to bear in mind that private lenders offer unique advantages with the aim of taking over all of your financial needs in the long term.
What Do Banks Class as High Net Worth?
High Net Worth criteria can vary from lender to lender, but it's typically identified by:
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£300k+ annual income
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Or £3m+ in assets
Your annual income ideally needs to be net of tax if it’s salary, and if you intend to use the net profits of your company before you’ve taken salary and dividends, then you may need a little more.
In addition, your £3m capital needs to be fairly liquid, and the assets need to be able to realise their full value reasonably quickly without a drawn-out sale or bidding process.
A stock portfolio is perfect, but a collection of rare antiques - not so much.
How Does Using a Private Lender Work?
Private lenders typically take a holistic view of your finances and overall wealth, offering a more personalised service and access to bespoke products. However, the clue is in the name, and private lenders have specific eligibility criteria for who they will work with. A private bank will usually want to manage your assets on a long-term basis, and you'll benefit from a dedicated relationship manager, exclusive lending options, and advice and services tailored to your long-term financial goals.
Alongside mortgage services, they will typically offer a range of wealth management services, including investment management, financial planning, estate planning, and retirement planning. A team of wealth managers will work closely with you to develop customised investment strategies and portfolios designed to grow and preserve wealth over the long term.
Recent Private Finance Case Studies
How Do You Arrange a Private Mortgage?
Unlike a high street bank, private lenders can be difficult to access, and it can be challenging to get a comprehensive idea of the products available to you.
If you think a mortgage with a private lender could be the right option for you, get in touch with one of our specialist private finance brokers to discuss your requirements.
At Clifton Private Finance, we have relationships with private lenders across the market, and we can offer you tailored advice on the best route to take. We have access to market-leading rates and can put you in touch with the most suitable lender for your situation.
To see what we can do for you, call us at 0117 313 5157 or book a free consultation below.
If you have any questions about our services or want to start making things happen please contact us
