Which private bank is best for a £1 million-plus mortgage?

Which private bank is best for a £1 million-plus mortgage?

 

Wealthier borrowers looking for a £1 million-plus mortgage often ask whether they should use a high-street lender, a building society or a private bank.

There is no single “best” private bank for every client. Barclays Private Bank, Coutts, Investec, Lloyds Private Bank and Santander Private Bank can all be useful, but they tend to suit different types of borrowers. The right choice depends on the client’s income, assets, deposit, property value, loan size, repayment strategy, wider banking relationship and whether they need bespoke underwriting.

For most of our clients, a high street bank or building society offers the cheapest rate. For others, a private bank may be the only way to secure the required loan size or structure. High street lenders are offering two-year trackers below 4% and two-year fixes from just below 4.2% for £1 million+ mortgages.

Private bank mortgage comparison

Private bank	Best for	Key USPs
Coutts	High-net-worth clients, complex income, large interest-only loans, offset mortgages and bespoke borrowing over £1.5 million	No upper borrowing limit, interest-only options up to 35 years, high loan-to-value lending, offset mortgages and the ability to consider bonuses, carried interest and equity income.
Investec	Private equity professionals, entrepreneurs, senior professionals and clients with complex income often with smaller deposits	Minimum mortgage of £1 million, typically lends up to £10 million and may consider more. Offers interest-only, repayment, part-and-part, low-start and revolving mortgage options. Lends on prime London homes to country estates.
Barclays Private Bank	Ultra-high-net-worth clients, family offices, trusts and international clients buying or refinancing UK or overseas property	Barclays Private Bank says it specialises in ultra-high-net-worth clients, family offices, trusts and international clients looking to finance property in the UK and overseas. For borrowing above £10 million, Barclays says it can design a bespoke solution tailored to the client and the property.
Lloyds Private Bank	Wealthy clients who want a private banking relationship with a major UK banking group	Private Banking is available to clients with £250,000-plus in savings/investments or a £750,000-plus Lloyds mortgage. Mayfair service is aimed at clients with £2 million-plus in savings/investments or £500,000-plus annual income. Lends on prime London homes to country estates.
Santander Private Bank	Whether you’re planning a dream home, imagining your own spot in the sun, or seeking support for personal or business projects	Wealth of lending expertise with a single point of contact. When looking to mortgage or remortgage in the UK, clients benefit from having their Private Banker at the centre of the lending process. Working on your behalf, they liaise with Lending Specialists, to support you throughout your application. Our international specialists can help you arrange the financing of your new home.

 

Barclays Private Bank mortgages: typically for ultra-high-net-worth and international clients

Barclays Private Bank can be useful for wealthy clients who need a more bespoke mortgage than a standard high-street application can provide.

It specialises in ultra-high-net-worth clients, family offices, trusts and international clients looking to finance properties in the UK and overseas. This can make Barclays Private Bank useful for clients with complex wealth structures, international assets, overseas income, high-value property purchases or borrowing needs that do not fit standard lender rules. Barclays can also work with clients to design a bespoke mortgage solution tailored to the borrower and the property.

This makes Barclays Private Bank a strong option for clients buying super-prime homes, refinancing large property portfolios, using offshore or trust structures, or needing relationship-led underwriting.

Which private bank is best?

There is no single best private bank for a £1 million-plus mortgage.

Coutts may be best for very wealthy clients needing bespoke structuring, large interest-only lending, offset options or complex income assessment.

Investec may be best for private equity partners, entrepreneurs, senior executives and clients with large, complex or fast-changing income.

Barclays Private Bank may suit ultra-high-net-worth clients, international borrowers, trusts, family offices and clients needing £10 million-plus bespoke property finance.

Lloyds Private Bank may appeal to clients who already bank with Lloyds or want private banking support from a major UK banking group.

Santander Private Bank may be best for borrowers who need a £1 million-plus mortgage and also offers a large-loan proposition with competitive high-street pricing through Santander for Intermediaries.

Aaron Strutt, Product Director at Trinity Financial, says:

“There is no single best private bank for a £1 million-plus mortgage. Coutts, Investec, Barclays Private Bank, Lloyds Private Bank and Santander all have strengths, but they suit different types of borrowers.

“Coutts and Investec can be extremely useful for clients with complex income, large interest-only requirements, carried interest, bonus income or significant assets. Barclays Private Bank is particularly strong for ultra-high-net-worth clients, family offices, trusts, international borrowers and those needing very large bespoke loans.

“Lloyds Private Bank may appeal to clients who want private banking support from a major UK banking group, while Santander can be a strong option for borrowers who need a large loan but still fit mainstream affordability rules.

“The important point is that private banking is not always cheaper. Some high-street lenders and building societies can offer excellent rates for £1 million-plus mortgages if the client fits their criteria. A broker’s job is to compare both options and work out whether the client needs bespoke private banking or simply the most competitive large-loan lender.”

Which private bank is best?

The high-street banks and building societies offering some of the lowest mortgage rates often include HSBC, First Direct, Nationwide, Barclays, Santander, Halifax, Lloyds, NatWest, Coventry Building Society, Skipton Building Society, TSB, Virgin Money and Accord Mortgages. These lenders regularly appear in mortgage best-buy tables, although the cheapest lender can change quickly as banks and building societies reprice their fixed and tracker mortgage deals.

The lowest mortgage rates are usually available to borrowers with the largest deposits or the most equity in their homes. Many of the cheapest two-year and five-year fixed rates are offered at 60% loan-to-value, which means the borrower has a 40% deposit or 40% equity in the property. Borrowers with 10% or 5% deposits can still access competitive mortgage deals, but they usually pay higher rates because the lender is taking more risk.

HSBC and First Direct are often competitive for borrowers with strong affordability, clean credit profiles and larger deposits. Barclays can be useful for higher earners and larger mortgage loans, while Santander, Halifax, Lloyds and NatWest frequently offer competitive rates for first-time buyers, home movers, remortgage customers and existing borrowers switching products. Nationwide is also popular with first-time buyers and home movers, and it regularly updates its fixed-rate range.

Building societies can also be highly competitive. Coventry Building Society, Skipton Building Society and Accord Mortgages may offer attractive rates and can sometimes provide more flexible criteria than the biggest banks. They may be useful for borrowers needing larger loans, offset mortgages, interest-only options, contractor mortgages, self-employed income assessment or more generous affordability rules.

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.

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