One of the key reasons that many clients come to Enness Private Office is because they are looking to begin a private bank relationship. Understandably, opening an account with a private bank is very different to opening an account with a high-street, retail bank.
A private banking relationship can be extremely beneficial, especially if you have liquid assets which you are unsure how to manage. However, beginning a private bank relationship will generally require an introduction from a broker.
I was recently able to provide such an introduction for some come clients of mine who felt they needed further financial advice. My clients had recently downsized, and were mortgage-free, having bought their new, smaller property in cash. They also owned some buy to let properties, and had significant savings.
However, they were then presented with a new business opportunity which they wished to buy in to. Instead of using their savings, they wished to use the equity in their property, by taking out a 50% loan to value (LTV) mortgage against their residence and one of their buy to lets, the total value of which was £4million. All in all, they hoped to raise £2million for the business opportunity.
This was already problematic: many lenders do not like to lend against residential property for business purposes. My clients were also facing time constraints, as they needed to draw down within a matter of weeks in order to successfully move on the opportunity presented to them.
My clients also wanted something more than simply borrowing money against their house—because of their wealth and their considerable savings, they hoped to begin a beneficial private banking relationship, enabling them to receive advice on their savings and investments in the future.
Fortunately, this is exactly the sort of situation that the Enness Private Office team handles on a daily basis. I was able to introduce my clients to a prestigious and well-respected private bank offering financial advice as well as the mortgage facility. I negotiated for terms of 2% over the base rate, on a 5-year interest only repayment basis.
If you are looking to take out a large mortgage and would like to begin a private bank relationship, I would be delighted to talk you through your options.