Private Bank Lending

Private banks are primarily wealth managers and like to acquire clients who have a profile of existing wealth, or least the strong potential of having liquid assets in the future which they may be able to manage.

Private banks can extend a credit facility for their clients, secured against property or other assets, at very competitive rates. We are currently sourcing private bank facilities secured against property with a margin of around 1.75% per annum, and facilities secured against blue chip equities at around 0.65% per annum.

Pros of Private banks:

• Rates – can be far cheaper than the high street, the vast majority have little or no early repayment penalties.
• Flexibility – they can easily handle complex or unusual transactions that the high street cannot.
• Experience – Because of their client base they are very used to sophisticated financial structures and requirements.
• Personal – Private banks pride themselves on excellent customer service. You will have direct contact with a private banker at all times.

Potential Cons of Private banks

• Client profile – you must have a profile that supports an ongoing relationship with the bank.
• Assets invested – many private banks will only lend to clients that are prepared to invest with them, or use other services such as trust management.
• Fixed rates can be uncompetitive.

If you would like to discuss if Private Bank lending could be appropriate for you then please call us on 0207 127 4282 and we would be happy to talk through your options.

Some forms of Private Bank lending are not regulated by the Financial Conduct Authority