You are here: Home - Mortgages - Buy To Let - News -

Coutts tightens mortgage criteria to exclude non-millionaires

Written by:
Coutts, the private banking arm of RBS, has changed its lending criteria for mortgage clients who will need to have £1m of investable assets before it considers applications.

Previously, Coutts clients had to hold £500,000+ in investable assets before taking out a mortgage loan with the lender.

Coutts said that the criteria change is a “rough guideline” and that it is “not set in stone.”

“If we felt that a client’s case looked appropriate without the £1m in place then we would consider doing business with them,” said a spokesman.

Coutts added that the new guidelines only “slightly alter” the previous criteria.

The lender said that all mortgage clients will have to be Coutts account holders just as before and the loan application process will remain the same.

Ian Gray, mortgage manager at said: “There are other private banks and high street lenders that lend without investable assets; this would be an option for clients who do not fit Coutts’ criteria.

“The drawback to this is that many of the other private banks are ultra conservative on lending so clients may not be able to get the higher loan to value products that Coutts offers”

Mortgage clients who bank with other lenders would also miss out on some of Coutts’ more unique product features including a pure offset mortgage and deals longer than a five-year term, added Gray. He said unlike many other private banks, Coutts also pays its brokers proc fees.

“There aren’t many brokers who do business in the high net worth mortgage market, but for those who do, they will have to start negotiating a higher fee with their clients,” added Gray.

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Inflation dips to 4% in March

Inflation fell by 0.4% to 4% in March as the cost of food and drink lowered, but was still double...