If you are looking for a £1 million+ residential or buy-to-let mortgage, Coutts private bank offers wealthier clients competitively priced fixed and tracker rates.
The bank has private bankers to look after different types of clients ranging from entrepreneurs and sportsmen to entertainers and international buyers. It regularly helps borrowers who are paid in foreign currencies and based across the world.
Aaron Strutt, product director at Trinity Financial, says: “If your income is complicated because it is generated through a trust or an offshore account, then it is probably best to secure finance through a private bank like Coutts.
“If your financial situation is relatively straightforward you may get a cheaper rate through one of the high street banks or building societies. They offer incredibly low large mortgage loans and they are giving the private banks some real competition.”
Trinity Financial has access to one bank offering rates at just over 1% for mortgages between £500,000 and £5 million. Like Coutts, the lender does not require assets to be transferred as part of the process.
Coutts’ most competitively priced residential rate is a tracker at 1.49% over the 0.25% Coutts Base Rate. It has an initial pay rate of 1.74% until 9 January 2020.
It is available to borrowers typically with a 20% deposit, and it has a 0.5% arrangement fee. There are no early repayment charges.
The overall cost for comparison is 3.4% APRC, and after the initial tracker rate the mortgage reverts to the bank's current variable rate of 3.25%. The minimum term is five years, and the maximum term is 25 years.
The bank also offers a two-year fixed rate mortgage and it is 0.65% more expensive than the tracker. The five-year fix is 0.9% more expensive than the 1.74% tracker.
The ten-year fix is priced at 3.34% and the overall cost for comparison is 3.5% APRC. Once again, after the initial tracker rate, the mortgage reverts to the bank's current variable rate of 3.25%. Early repayment charges apply for the full ten years.
Coutts does not have a loan-to-value banding system for clients earning enough money, so they could take 95% mortgage providing they can demonstrate that they have a valid mortgage repayment strategy. They would also need to make lump overpayments to reduce loan-to-value. This is very different from the high-street lenders.
The monthly payments on a £2 million mortgage through Coutts could be as low as £2,900 on interest-only or a higher £8,266 on full capital repayment. This is over a 25-year term.
The monthly repayments on HSBC for Intermediaries two-year fixed rate mortgage are lower at £2,483 on interest-only or £7,989 on full capital repayment, again over a 25-year term.
To qualify for HSBC’s interest-only mortgages, single applications will require a minimum income of £100,000 to be eligible. For joint applications, at least one borrower must earn £100,000.
The bank will accept the sale of an additional home or buy-to-let as a repayment vehicle, or other investments, cash savings or bonuses.
Call Trinity Financial on 020 7016 0790 or email to secure an impressively priced large mortgage loan