But when it comes to private banking today, it’s a service for high net worth individuals (HNWIs) who are seeking a service that takes a holistic view of their entire financial world, something that isn’t possible when dealing with a number of retail banks.
Very few private banking mortgages are listed on sourcing systems because most private banking mortgage deals are bespoke solutions, created specifically to meet the needs of each individual borrower. It’s not a case of the borrower simply wanting something a bit different, but requiring a product that takes into account their income, financial assets, reputation and track record.
For example, it’s not unusual for wealthy individuals to have money tied-up in various types of assets from property to shares that they do not want to liquidate, and so would instead prefer to borrow against these assets. Their income may also derive from several different sources including salary, vesting shares and dividends and not all the income may originate from within the UK. For example, senior bankers working in the City for a European or American bank may receive their salary in sterling but their annual bonus in euros or US dollars. If the bonus is to be considered for mortgage purposes, then the loan will be categorised as a foreign currency mortgage, which Investec Private Bank is experienced in handling.
And the loan application may well be for a large sum, for example £5million, which is also outside the criteria of many high street lenders.
Private banking is geared towards the complex needs of HNWIs, with experts who are able to assess every application on its own merits and create a solution that meets the specific requirements of the individual borrower. You may not work with HNW clients every day, but sooner or later you may have a client who will benefit from a more bespoke mortgage service.
