Private banks do not have internal score cards and will take the time to consider a person’s circumstances in order to try and offer a solution bespoke to the individual. Where the high street can provide an agreement in principle certificate within minutes, private banks offer a conversation to see if there are enough compelling reasons to take on the application. The makeup of a person’s assets, their liabilities, expenditure, and income are all key to the conversation. Where and how income is derived, the currency, and frequency are important as well, and perhaps no different to high street lenders. However, the ability to substitute income for assets, accept income derived in foreign currencies, as well as being able to consider complex income streams and future income are all advantages that a private bank can offer.
Unlike their high street counterparts, private banks like to meet all of their prospective clients in person. The purpose here is to introduce the bank and services to the client and take the client through their compliance and regulatory requirements. A further difference is the requirement to become a banking client and open a current account, although the insistence the client transfer assets to the bank as part of the transaction is becoming rarer, and more banks now offer a credit only facility as standard, or priced accordingly.
Once the bank account paperwork is complete and all the supporting documents for the mortgage are with the bank an approach to their credit committee for formal approval can be made. It varies from lender to lender, but credit meetings take place at least twice a week and the bank can then discuss the application in full, agree it subject to valuation, or ask for further information. Through the relationships we have built with the leading private banks in the UK, Capricorn Private Clients are able to determine if there is appetite to support you before official credit approval so that the gathering of supporting documents and account opening are formalities to achieving it.