This is not just lending. This is bespoke lending.

For high-net-worth clients with more complex borrowing needs, Chiraag Patel explains how private banks can offer a more tailored lending solution.

The fallout following the UK government’s infamous and unfunded mini-budget in September 2022 revealed the complex mechanics underpinning mortgage lending. The market turmoil that ensued saw banks and building societies scramble to withdraw mortgage offers as sterling plummeted to historic lows and gilt yields soared.

Gilt yields are important as they reflect the cost of government borrowing and are used by lenders to set mortgage interest rates. The rapid rise in gilt yields following the chancellor’s fiscal announcement meant lenders were faced with mortgage offers and products that were no longer viable. The events of September 2022 were extreme, resulting in the political downfall of a chancellor and prime minister, but they highlighted the complexities of mortgage lending and the potential difficulties in finding a product that suits your needs.

This is where a private bank, such as Nedbank Private Wealth, can often help. We have the flexibility to offer lending solutions that can be tailored to your individual circumstances, not just how well you fit a prescribed set of criteria. The benefits we offer can include:

A personal approach

• Access to a dedicated private banker means a deeper understanding of your financial situation and goals.
• Each lending application is judged on its individual merits.
• Consideration is given to your wealth as a whole, rather than purely income.

Flexibility

• Experience of working with those who may not fit the criteria of many high street lenders, such as those who have less traditional income streams.
• Rates decided on an individual basis depending on the size of the loan relative to the value of the property, and the loan term.
• For clients who are asset-rich but cash-poor, borrowing can be secured against a range of investments as well as UK property.

Expertise

• Experience in providing lending solutions to clients around the world, often with complex financial affairs.
• International expertise that can help expat and foreign national clients who are choosing to move to or invest in the UK.
• Options for wider wealth planning opportunities alongside your lending arrangements.

Quick decision making

• The autonomy to make quick decisions, allowing you to move quickly.
• By taking a charge on existing assets to free-up cash, you can secure your new asset at the right price and remortgaging can be arranged at a later point.

Competitive pricing

• Competitive interest rates and fee structures that can meet your immediate needs as well as supporting your longer-term wealth goals.
• Cost effective, as your investments need only be transferred to us if the loan is secured against them.

Ultimately, we have the time and experience to understand you as an individual, which means we can provide a bespoke lending solution that will meet your financial needs in the most appropriate way.

Whether you are about to borrow for a specific purpose in the near future or are planning for something further down the line, it pays to discuss your needs in advance. Get in touch today and we can discuss your options.

Clients can borrow against a UK, Isle of Man or Channel Island-based residence, be it a home or an investment property. We also lend against investment portfolios, and loans can be denominated in sterling, euros or US dollars. With clients in 160 countries, we often help clients based outside the UK, and have lent using the same approach across market cycles since 1987.

To find out more about Nedbank Private Wealth’s bespoke lending services, please visit our ‘Borrowing’ page or email [email protected]. You can also contact your private banker directly or call our client services team on +44 (0)1624 645000. Or you can get in touch via our Contact us page.

If you fail to keep up loan repayments, your home or property used to secure the loan may be repossessed. Any examples of products and services are for illustrative purposes only and do not constitute an invitation inducement, advice or a personal recommendation. Nedbank Private Wealth does not provide tax advice, and instead works with tax advisers to ensure clients receive the appropriate advice. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.