For the vast majority of Enness Private Office clients, a private bank is the best port of call when searching for a large mortgage. However, before offering a mortgage, private banks have traditionally asked for clients to place funds with the bank as a condition of beginning the private banking relationship. This can be frustrating for clients seeking a large loan without assets under management.
Historically, private banks have required up to 50% assets under management when offering a large property mortgage to a client. In some circumstances, clients may be happy to do this—but in our experience, many high net worth individuals already confidently manage their own assets and would prefer not to place these with a lender they have never worked with before.
So how can you get a large loan without assets under management?
Fortunately, this attitude has recently undergone a shift. Some very reputable names in the private banking world have begun to cater for clients seeking a large mortgage without placing assets under management. Known as ‘dry lending’, this means borrowers can take out a large mortgage facility without placing financial assets with the lender.
Why has this changed?
The market is extremely competitive at present. Previously, high street lenders would typically only provide mortgages up to £1million. Now, some high street lenders are happy to lend up to £5million, meaning that private mortgage lenders have been forced to adapt their offering in order to attract new clients.
How does this benefit you?
Ultimately, this means private banks are having to broaden their offering in order to build relationship with desirable high net worth clients. Private banks are keen to develop mutually beneficial and lifelong relationships with their clients, so many are now more keen to offer dry loans and favourable mortgage rates to appealing clients from day one.
If you are looking for a large mortgage but do not want to place assets under management, the Enness Private Office team has excellent relationships with all of the top private banks. We would be delighted to discuss your situation further to explain the most beneficial mortgage options for you.