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Coutts to allow customers to proceed with mortgage without ‘full banking relationship’

  • 17/07/2023
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Coutts to allow customers to proceed with mortgage without ‘full banking relationship’
Private bank and wealth manager Coutts will no longer require clients to have a “full banking relationship” with the firm to proceed with a mortgage application.

According to a note sent to brokers, the firm said that from today clients will no longer need to have a current account to proceed with a mortgage application.

The note said customers could still have a “full banking relationship” if they desired, but if they did not then they would revert to the bank’s mortgage servicing account for “collection of mortgage related fees and overpayments”.

Coutts said there was no need to fund monthly mortgage payments via this account and customers would need to undergo full onboarding checks.

“There is no requirement for you to discuss Coutts banking offering with the client, we will discuss options with the client once the mortgage application is proceedable,” it noted.

Coutts said offset mortgages and mortgage reserve accounts were exempt and would require a client to open a current account with the firm.

Coutts was contacted for comment.


‘This will certainly help many clients’

Nicholas Mendes, mortgage technical manager at John Charcol, said homebuyers with complex incomes or wealth streams could find “mortgage options restricted if they approach traditional high street lenders, who typically apply a “tick box” approach to assessing whether to grant a mortgage”.

“Private bank mortgages are often bespoke to the individual borrower. Finding the right funding partner and negotiating terms and repayment methods can be inherently complex, requiring careful consideration and meticulous execution.

“Private banks assess each mortgage lending decision on an individual basis, taking into account a potential borrower’s assets and the bigger financial picture,” he noted.

Mendes said  the “biggest limitation” with private banks was the requirement for the mortgage hold to move their main banking as part of the application.

“Many high net worth individuals are happy with their existing banking relationship which is often passed on from previous generations and for future. This will certainly help many clients,” he added.

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