Pulling in the private bank borrowers

High-net-worth clients are increasingly looking beyond traditional private banking when it comes to property finance. Their requirements can extend well beyond a single property transaction, with investment strategies, business interests and wider financial plans often influencing the type of funding they need.

For these clients, the starting point is not necessarily identifying a mortgage product but understanding what they are trying to achieve and how property finance can help them get there.

One part of the picture

The private client market is becoming increasingly diverse. While many high-net-worth individuals continue to use private banks for their wider financial affairs, there is a growing opportunity for specialist property finance advice that offers greater choice and a broader view of the funding market.

A client may be looking to buy a home, release equity from a property, fund an investment opportunity, restructure borrowing or support a wider property portfolio. In many cases, the property transaction is one part of a much larger financial picture.

The challenge is that there is rarely one obvious funding route. A client’s circumstances, existing assets and wider financial plans can all influence how a transaction should be structured, making access to a broader range of finance options particularly valuable.

For high-net-worth borrowers, the assumption that they simply need a larger version of a conventional mortgage can miss the wider opportunity.

The starting point is often an objective rather than a product. A client may know what they want to achieve but not understand the most appropriate route, whether this is a residential mortgage, a BTL facility, a second charge, bridging finance or another form of specialist funding.

This is where specialist advice can add value. Rather than matching a client with a particular product, the adviser can look across the options and build the funding strategy around the requirement.

Lucy Waters, managing director of Aria Finance, believes this is central to the way clients should be approached.

Read the full story in B&C Magazine, here.