Private banks kick off new year with renewed appetite to lend

Mortgage rates of less than 2 per cent are available to wealthy borrowers as the private banks demonstrate a keenness to lend which is not apparent among their high-street equivalents. Although Investec Private Bank revealed that access to finance is a ‘major issue’ for those purchasing properties costing more than £1m, this is not necessarily the case if you know where to go.

Melanie Bien, director of Private Finance, says: ‘The outlook for 2011 is good, with private banks making the right noises about wanting to lend more. Specialist high-end brokers such as ourselves have access to a wide range of UK and international private banks.

‘By contrast, lending in the mainstream market is static, with lenders not really keen or able to lend more. Mainstream lenders have been raising their rates in the past couple of weeks but private banks are still offering rates from as low as 1 per cent above three-month LIBOR, giving a pay rate of 1.77 per cent, for the right sort of client.’

Contact your usual consultant or call Private Finance on 0800 980 8777.