UBS mortgage rates vs high street bank mortgage rates

by Aaron Strutt

Sep 02 2024

UBS Private Bank provides tailored mortgages to high-net-worth individuals, often bankers, hedge fund managers, and law firm partners. Its mortgage products are usually structured for clients with significant wealth who require bespoke lending solutions. The minimum mortgage loan size is around £2 million.

If your financial situation is complex and your income is generated through a trust or an offshore account, it may be best to secure a mortgage through a private bank like UBS or Coutts. However, if your finances are more straightforward, you'll get a much cheaper rate through another lender.

Trinity Financial has access to high street banks and building societies offering fixed large mortgage loans starting at 3.75%. These lenders are giving the private banks a run for their money.

Aaron Strutt, product director at Trinity Financial, says, "High street mortgage lenders are keen to compete with private banks, often undercutting their rates and setup fees. Fixed mortgage rates have increased recently but are still reasonably priced.

"One building society is offering a two-year fix at just below 3.85%, a three-year fix and a five-year fix just over 4% for mortgages between £300,000 and £5 million. It does not require assets or investments as part of the process and works with high-net-worth clients. These rates have £1,499 arrangement fees, rather than a 0.5% or 1% fees. The lender has a reputation for producing fast mortgage offers."

Qualifying for a UBS Mortgage

To qualify for a UBS mortgage on a UK property, you generally need to meet the following criteria:

High Net Worth Requirement: UBS often targets individuals with a minimum net worth of several million pounds or equivalent in other currencies. While specific thresholds may vary, you should expect to demonstrate substantial assets under management (AUM) or other qualifying criteria.

Customised Loan Structures: UBS mortgages are not "off-the-shelf" products. The bank has fixed mortgage rates and offers mortgage terms between 1 and 15 years. They are customised to align with the borrower's financial goals.

This might include:

• Interest-only options.
• Financing across multiple currencies.
• Loans against securities or other assets.
• Interest rates can be fixed up to 18 months in advance to reduce risk.

Relationship with UBS: Becoming a UBS client typically involves placing a significant amount of wealth with the bank. This may include investments, savings, or other financial products UBS manages.

Strong Creditworthiness: Although wealth is a primary factor, you will still need to demonstrate strong creditworthiness, income stability, and an ability to meet repayment obligations. The bank will want to know the source of your wealth.

UBS mortgage rates vs high street bank mortgage rates

Some high lenders offer larger maximum loan sizes on their most competitively priced two-, three- and five-year fixes. They also provide Bank of England base rate tracker mortgages without early repayment charges.

Trinity Financial's brokers consistently arrange larger mortgage loans through lenders like HSBC for Intermediaries, Barclays for Intermediaries and Santander for Intermediaries. Santander recently improved its mortgage criteria, offering £1 million+ 75% interest-only mortgages over a 40-year term.

What type of properties does UBS lend against?

UBS can assist with financing for:

• Prime residential properties.
• Luxury second homes.
• Buy-to-let investments (for clients with a professional portfolio).
• Unique or high-value properties requiring tailored financing.
• Self-build mortgages.
• Mortgage overdraft facility.

Additional considerations

• Interest Rates and Fees: UBS often provides competitive rates, but they will reflect the bespoke nature of the financing and may include higher fees for structuring and management.
• Cross-Border Clients: UBS specialises in servicing international clients, which can be advantageous if you're not a UK resident but are purchasing a UK property.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

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