Over recent months a number of major names have entered the large mortgage market. After many companies withdrew from the million pound mortgage sector as a result of the global financial crisis, the choice of lenders for high net worth mortgage borrowers had shrunk significantly.
However, increasing confidence and a desire to tap the large loan sector has attracted a number of high profile lenders back to the market since the start of the year. Now, a leading High Street bank is set to pilot a high value mortgage proposition ahead of rolling out a large mortgage service in 2014. Keep reading to find out more about Nat West’s plans and why an expert believes that the bank’s entry into the market will be good news for high net worth finance clients.
Nat West to pilot a large mortgage service
Mortgage Introducer has reported that Nat West has approached a number of mortgage brokers to discuss its service and is accepting large mortgage applications on a case-by-case informal basis.
A spokesman for NatWest Intermediary Solutions said: “Large loans is an area we know a number of brokers specialise in and so we’ve been speaking with them to learn more about serving customers with more complex mortgage requirements.
“Once we’ve reviewed our current offering in this sector we’ll be in a position to say more on how we might respond to those more tailored needs.”
The lender – part of the Royal Bank of Scotland group – said it is always looking to enhance its service to brokers and speaking to them directly to understand what works for them was the best approach.
Islay Robinson, CEO of London mortgage broker and million pound mortgage specialist Enness Private Clients welcomed Nat West’s decision. He said: “Over the last few months we have seen a number of major players return to the large loans arena.
“While they often can’t compete with private banks in terms of their underwriting proposition or their ability to deal with complex cases they do offer some exceptional products to clients who tick their boxes.”
Bank joins other names entering the million pound mortgage market in 2013
Earlier in 2013, the Financial Times reported that ‘more banks are launching mortgage ranges targeted for professionals, such as accountants, architects, dentists and lawyers’. Schemes from Investec, Scottish Widows and Santander have joined other large mortgage propositions this year from the likes of Virgin Money and Metro Bank.
Mr Robinson, the large mortgage expert, added: “One of the problems we’ve seen when High Street names enter the million pound mortgage market is that they offer great deals but don’t match this with expert underwriters. If you have a client whose situation is very straightforward then the likes of Nat West may be able to help on excellent terms.
“However, as soon as the case becomes complicated it is often the case that inexperienced lenders will simply decline the application. Private banks will therefore remain an excellent choice for many clients whose personal circumstances don’t fit narrow lending criteria,” he added.