Mortgage Market News
Mortgage Market News Private banks are breaking new boundaries on loan to value ratios

Private banks are breaking new boundaries on loan to value ratios

Here at largemortgageloans.com we always want to be the first to deliver our clients ground-breaking developments in the larger loan space.

In recent weeks we have seen private banks move into unprecedented territory in considering up to 70% loan to value (LTV) on a ‘dry lend’ over £10 million. That means they will consider a 70% LTV on £10 million without assets under management (AUM) on the other side of the balance sheet to secure the loan, for what they consider to be the right client.

Click on the video below to see what Paul Welch, CEO and Founder of largemortgageloans.com, has to say.

Welch says, “Previously we had not seen LTVs higher than 50% on loans above £10 million, so this really is unique and extraordinary territory for private banks, who are using their balance sheet to attract the right type of client. This is effectively a mortgage and has been driven by private banks needing to compete in times of uncertainty.”

Our team are seeing terms of 3-5 years which can be fixed. Private banks have a range of different offers and requirements for the right clients, all of which can be negotiated and tailored to individual circumstances.

Welch says a range of factors have driven the move, “Mainly this is about competition and it’s a play for the banks to cultivate client relationships in uncertain times. The banks are also mindful that valuations have been squeezed in a stagnant housing market. Anyone looking to leverage a prime piece of real estate is likely to be looking at a much lower valuation than they were three or four years ago. However, the banks are taking a long-term view that values will bounce back over time in prime areas.”

If you are interested to find out more, don’t hesitate to get in touch to discuss your individual requirements.

Return to the Latest Market News

This Month’s Top Fixed Rate

Fixed rate
Initial rate: 1.35%

Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.46%

Get This Rate

This Month’s Top Variable Rate

Variable rate
Initial rate: 0.97%

Period: 2 years

Rate will revert to a variable rate, currently 4.99% thereafter
The overall cost for comparison is 4.37%

Get This Rate

Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.

Latest Articles/News

Case Studies

Are you looking for the best financing terms for a Buy to Let mortgage but …

Latest/Related News

Here at largemortgageloans.com we always want to be the first to deliver ou…

Press Release

States proposal to waive document duty on bonds hailed as a victory for mor…

Press Coverage

Could a retirement mortgage help you stay in YOUR home?…

LML Brochure

Download our brochure to find out more about Largemortgageloans.com and what we can offer

Click to Download

Sign Up

Subscribe now, to hear from us on the latest mortgage market news, products and services.

Client Testimonials

Close

Live chat with
our team now

Chat

LargeMortgageLoans.com