Goldman Sachs mortgages vs high street bank mortgages

Goldman Sachs Mortgages: How do they compare with high street bank mortgages?

Goldman Sachs is one of the world’s best-known investment banks and wealth managers, but it is not a mainstream UK mortgage lender in the same way as Halifax, Barclays, HSBC, Santander, NatWest or Nationwide.

For UK borrowers, Goldman Sachs is best understood as a private banking and wealth management lender, rather than a high street mortgage bank with published residential mortgage rates, standard affordability calculators and widely available fixed-rate products. Goldman Sachs says its UK Private Wealth Management division works with ultra-high-net-worth individuals, family offices, foundations and executives, and refers to its “lending capabilities” as part of the service.

Does Goldman Sachs offer mortgages?

Goldman Sachs does offer lending through its private banking and wealth management divisions, and its Private Wealth Management site lists Private Banking and Strategic Lending among its tailored services.

However, Goldman Sachs does not appear to offer ordinary UK residential mortgages through Marcus by Goldman Sachs. Marcus UK currently lists savings products such as an Online Savings Account, Cash ISA and Fixed Rate Saver, but not residential mortgages.

This means most UK homebuyers looking for a conventional mortgage will usually compare high street lenders, building societies, specialist lenders and private banks, rather than finding a standard Goldman Sachs mortgage product online.

What type of clients is Goldman Sachs keen to attract?

Goldman Sachs Private Wealth Management is aimed at wealthy private clients rather than mass-market mortgage borrowers. Its UK page refers to ultra-high-net-worth individuals, family offices, foundations and executives.

Goldman Sachs reportedly wants to grow lending to ultra-wealthy private bank clients with account sizes above $10 million, and these clients typically have a net worth of at least $30 million. The lending strategy includes loans for large purchases, including luxury homes, and loans secured against assets such as real estate.

In practice, this means Goldman Sachs is more likely to consider clients such as:

• Entrepreneurs and business owners
• Senior executives and partners
• Family office clients
• International high-net-worth individuals
• Clients with significant investments, liquidity or assets under management
• Borrowers with complex income, carried interest, bonuses, partnership income or investment wealth

It is not only for bankers, and it is not only for international clients. The key issue is usually wealth profile, wider relationship value, assets, income structure and the overall risk of the transaction.

What is Goldman Sachs’ mortgage acceptance criteria?

Goldman Sachs does not publish a standard UK mortgage criteria guide in the way high street lenders do. A high street bank will usually set out income multiples, loan-to-value limits, acceptable income types, minimum deposits, property rules and repayment vehicle criteria.

A private bank such as Goldman Sachs is more likely to assess applications individually. The bank may consider:

• The client’s overall net worth
• Income and liquidity
• Assets held with Goldman Sachs or capable of being transferred
• Investment portfolio, business assets or other collateral
• Property value, location and loan-to-value
• Currency, residency and tax position
• Whether the client wants interest-only, capital repayment or a bespoke structure
• The wider private banking relationship

For UK regulated mortgages, the Financial Conduct Authority defines a high-net-worth mortgage customer as someone with annual net income of at least £300,000, net assets of at least £3 million, or whose obligations are guaranteed by someone meeting those thresholds.

That FCA definition is not necessarily Goldman Sachs’ own entry requirement. It is better treated as the UK regulatory high-net-worth benchmark. Goldman’s internal appetite may be significantly higher, especially for private banking clients.

How much do you need to earn to qualify with Goldman Sachs?

There is no publicly advertised Goldman Sachs UK mortgage salary requirement.

As a guide, borrowers looking for private bank treatment often need substantial income, assets or both. In the UK, the high-net-worth mortgage customer benchmark is £300,000 annual net income or £3 million net assets.

For Goldman Sachs, its private bank is focused on ultra-wealthy clients rather than typical high earners. Some high-earning professionals may therefore find that a high street lender, specialist lender or another private bank is more practical than Goldman Sachs.

Does Goldman Sachs offer fixed or tracker mortgage rates?

Goldman Sachs does not publish a UK mortgage rate sheet for borrowers to compare fixed and tracker mortgage products. Unlike other private banks that also issue £1 million+ mortgages, including Barclays Private Bank, Coutts and Investec.

Private bank lending can be more bespoke than high street lending, so the rate structure may depend on the client, loan size, assets, term, currency, loan-to-value and wider relationship. The bank may offer lending priced against a reference rate, a margin, or another negotiated structure, but borrowers should not expect the same type of public two-year fixed, five-year fixed or tracker rate table they would see from a high street bank.

High street lenders, by contrast, usually offer clearly advertised fixed rates, tracker rates, standard variable rates and product transfer options.

Could high street lenders offer better mortgage rates than Goldman Sachs?

Yes, in many cases, a high street lender could offer a better headline rate than a private bank. This is provided the applicants' finances are not too complex. 

High street banks and building societies compete aggressively for mainstream residential mortgage business. They often have lower pricing for straightforward borrowers with:

• Good credit history
• Regular employed income
• Clean affordability
• Lower loan-to-value borrowing
• Standard UK property
• Simple residency and income position

For example, HSBC offers 6.5 times salary mortgages for those earning over £100,000, and Barclays also offers six times salary mortgages for higher earners. Halifax also offers enhanced borrowing for some first-time and home buyers, with a 5.5-times-income cap.

For some large-loan borrowers, high street lenders may also be more attractive because they can offer:

• Access to the lender's lowest fixed rates for higher loan sizes
• At the time of writing this blog, two-year fixed rates start from 4.5%
• Mortgages over £1 million and up to £10 million
• Lower arrangement fees, flat fees and not percentage-based
• No requirement to transfer investments or provide assets under management
• Standard product options
• Faster processing for simple cases
• Access to product transfers when the initial deal ends
• Interest-only lending
• Foreign currency income

When could Goldman Sachs or a private bank be more attractive?

Goldman Sachs or another private bank may be worth considering where the borrower needs more flexibility than a high street lender can offer.

This may include cases involving:

• Very complex income or international income
• Significant assets but irregular salary
• International clients buying UK property
• Borrowers who want lending linked to investment assets
• Family office or trust structures

A private bank may not always be the cheapest lender, but it can sometimes offer more flexible underwriting, higher loan sizes, bespoke interest-only terms or a more tailored approach to wealth and liquidity.

Are Goldman Sachs mortgages only for international clients?

No. Goldman Sachs Private Wealth Management serves wealthy clients globally and its UK operation refers to ultra-high-net-worth individuals, family offices, foundations and executives, not only overseas borrowers.

That said, international borrowers are often a natural fit for private banks because their income, assets, tax position or property plans may be too complex for a standard high street lender.

Are Goldman Sachs mortgages only for bankers?

No. Goldman Sachs is associated with investment banking, but its private bank is not only for bankers. It is designed for wealthy individuals, families, executives, entrepreneurs and family offices.

A banker, private equity partner, hedge fund professional, or senior executive may fit the profile, but the bank’s interest is usually in the borrower’s wealth, liquidity, assets, and wider relationships rather than their job title alone.

Goldman Sachs mortgage vs high street mortgage: which is better?

The right option depends on the borrower.

A high street lender may be better where the borrower wants the lowest available fixed rate, has straightforward income, fits standard affordability rules and does not need bespoke underwriting.

A private bank such as Goldman Sachs may be better where the borrower has significant assets, complex wealth, international income, a very large mortgage requirement or needs a structure that standard lenders will not consider.

For many clients, the best outcome is achieved by comparing both routes. Trinity Financial can assess whether a high street lender, building society, specialist lender or private bank is likely to offer the most attractive combination of rate, loan size, flexibility and terms.

Aaron Strutt, product director at Trinity Financial, says: "Goldman Sachs can provide lending to wealthy private banking clients, but it is not a mainstream UK mortgage lender with published residential mortgage rates. Borrowers do not usually approach Goldman Sachs in the same way they would approach Halifax, Nationwide, Barclays or HSBC.

"For straightforward UK mortgage borrowers, high street lenders may offer cheaper rates and more accessible criteria. For ultra-high-net-worth clients, international borrowers or those with complex income and assets, Goldman Sachs or another private bank may be worth exploring — but it should be compared carefully against the wider mortgage market."

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage