For high net worth clients with large and complex mortgage requirements, private banks have always been the go-to for securing a bespoke and tailored solution, in comparison to the strict mortgage product criteria of high street banks. However, many clients approach us after they have struggled to find a bank who would offer them strong terms without taking any assets under management. ‘Can I get a large mortgage without assets under management?’ is one of the most frequent enquiries we receive at Enness.
This was particularly true of the market a few years ago, as private banks would nearly always require at least 50% assets under management. In more extreme cases, it is also not uncommon to hear that clients can often find themselves having to move the entirety of their assets in order to secure a mortgage with a private bank.
Some clients may be more than comfortable with this if they have a prior relationship with the lender, or if the deal is particularly lucrative. Yet many are left feeling extremely frustrated with this scenario if they are happy with their existing asset management, and do not wish to have any potential alteration on their original return of investment.
What’s changing? Can I now secure a large mortgage without assets under management?
In recent times, the tides are changing, as some very reputable names in the industry have begun to cater for those seeking a large mortgage without assets under management. These loans are known as ‘dry lending’ products. Dry lending, simply put, is when a bank requires no assets under management in order to provide a mortgage.
This is mainly due to an extremely competitive market at present, as high street banks have increased their offering for high net worth clients. Caps have been raised, and so has the high-street appetite for larger loans. Where historically high street banks would typically only lend up to £1million, they are now able to lend anywhere in the region of £5million, meaning that private banks have been forced to make changes to retain previous levels of business.
How can this benefit you?
Private banks are resultantly making concerted efforts to build relationships with high net worth clients, which will leave them with lifelong and sustainable business. In this vein, they will offer a dry loan appealing to clients from day one in order to start the relationship in hope of receiving more successful business in the future.
If you are interested in securing a large loan with no assets under management, contact me today for a further discussion and I would be delighted to make the necessary introductions for you.