If you’re considering a large or complex mortgage, Coutts is one of the UK’s best-known private banks and offers mortgage solutions aimed at high-net-worth clients whose borrowing requirements may not fit a standard high-street approach.
Coutts mortgages can potentially accommodate large loan sizes, complex income, interest-only borrowing and applicants whose wider assets and wealth are important to the overall lending decision.
However, getting a Coutts mortgage is not simply about earning a high salary. Eligibility, the size of the mortgage, your wider financial position and your potential banking relationship with Coutts can all be important.
In this guide, we explain how Coutts mortgages work, current mortgage rates and products, lending criteria and when a private bank mortgage may be worth considering.
Quick Answer
Coutts offers bespoke residential mortgages with no stated upper borrowing limit and can consider income such as bonuses, carried interest and equity when assessing a client. It also offers fixed, tracker, offset and flexible mortgage options. For new clients introduced through intermediaries, Coutts currently states that the minimum loan should exceed £1.5 million, with applications assessed individually.
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What Is a Coutts Mortgage?
A Coutts mortgage is a private-bank mortgage designed for clients who may require a more bespoke approach to property finance than is normally available from mainstream mortgage lenders.
Rather than looking solely at basic salary and standard affordability calculations, private banks can take a broader view of a client’s financial circumstances.
This can be useful for borrowers with:
- high or complex earnings;
- substantial bonuses or carried interest;
- equity-based remuneration;
- significant investments or other assets;
- large mortgage requirements;
- interest-only requirements;
- multiple properties; or
- wider wealth-planning considerations.
Coutts states that it considers bonuses, carried interest and equity when assessing income and offers high loan-to-value options with no stated upper borrowing limit. Applications remain subject to individual assessment, status and eligibility criteria.
This doesn’t mean a Coutts mortgage will automatically provide greater borrowing than a mainstream lender. The benefit is that a private-bank approach can allow circumstances that do not fit neatly into standard automated affordability models to be considered in greater detail.
What Are Coutts Mortgage Rates?
Coutts mortgage rates depend on the product, loan-to-value, borrowing structure and individual circumstances, so there isn’t one single “Coutts mortgage rate”.
Coutts offers a range of mortgage options, including:
- fixed-rate mortgages;
- tracker mortgages;
- offset mortgages; and
- its flexible Mortgage Reserve Account.
Its fixed-rate mortgages can currently be arranged over two, five or 10 years, while tracker mortgage rates move in line with the Coutts base rate.
Coutts also publishes a House Mortgage Rate, which acts as its standard variable rate for certain mortgages after an initial fixed or tracker period ends.
Because mortgage pricing can change, borrowers should check the latest available products rather than relying on a historic rate quoted in an older article.
When comparing a Coutts mortgage with other private banks or mainstream lenders, it is also important to consider the overall structure of the mortgage rather than simply comparing headline interest rates. Arrangement fees, loan size, repayment method, flexibility and how the lender assesses your income can all affect which option is most suitable.
View the latest Coutts rates and pricing.
What Are the Coutts Mortgage Lending Criteria?
Coutts assesses mortgage applications individually, so its published criteria should be treated as a starting point rather than a complete lending policy.
For new clients introduced through mortgage intermediaries, Coutts currently states that the minimum mortgage should exceed £1.5 million.
Coutts also states that:
- it lends on UK properties;
- there is no stated minimum income requirement within its intermediary mortgage criteria;
- applications are assessed individually; and
- it can support a range of more complex borrowing circumstances.
However, qualifying for a mortgage and qualifying for a wider Coutts private-banking relationship are not necessarily the same thing.
Coutts’ broader eligibility requirements for new private-banking clients can involve substantial savings, investments or borrowing. Your individual route into Coutts and the wider relationship you establish with the bank can therefore be relevant.
For someone considering a large Coutts mortgage, it is sensible to establish eligibility before assuming that a particular Coutts product will be available.
How Much Can I Borrow With a Coutts Mortgage?
There isn’t a single income multiple that determines how much every Coutts mortgage applicant can borrow.
Private-bank lending can be particularly useful where a borrower’s financial position is more complicated than a basic salary multiplied by a standard income multiple.
Coutts states that it can consider income including bonuses, carried interest and equity when assessing mortgage applications. Its mortgage documentation also highlights the potential to consider a range of complex income types and bespoke lending circumstances, subject to underwriting.
This can be relevant to:
- company directors and business owners;
- senior professionals receiving substantial bonuses;
- partners in professional firms;
- executives receiving equity-based remuneration;
- entrepreneurs;
- clients with investment income; and
- borrowers whose overall assets are substantial relative to their regular earned income.
The mortgage available will still depend on factors including income, expenditure, existing borrowing, deposit or equity, property, repayment strategy and the wider financial position.
For high-net-worth borrowers, the important question is therefore often not simply “What income multiple does Coutts offer?”, but “How will Coutts assess my complete financial position?”
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What Types of Mortgage Does Coutts Offer?
Coutts offers several ways of structuring residential mortgage borrowing.
Fixed-Rate Mortgages
A Coutts fixed-rate mortgage provides a fixed interest rate and predetermined monthly payments for the agreed fixed period. Coutts currently offers two, five and 10-year fixed-rate options.
Tracker Mortgages
Coutts tracker mortgages have an interest rate linked to the Coutts base rate. This means the mortgage rate and monthly payments can rise or fall when the underlying rate changes.
Tracker products can provide additional repayment flexibility, although borrowers need to be comfortable with the possibility of rates increasing.
Offset Mortgages
The Coutts Offset Select Mortgage allows eligible deposits to be offset against the mortgage balance on which interest is charged.
Deposits can currently be held in sterling, euros or US dollars, and Coutts states that multiple eligible deposit accounts can be linked to the arrangement.
This can be particularly interesting for clients who hold substantial cash but want to retain access to it rather than using all of the money to reduce their mortgage balance permanently.
Mortgage Reserve Account
The Coutts Mortgage Reserve Account provides access to borrowing up to an agreed limit, with interest charged on the amount actually drawn.
Coutts describes it as a flexible option that could be used for purposes ranging from purchasing a second home to funding an investment opportunity.
Interest-Only Mortgages
Coutts also offers interest-only mortgage options. Its residential mortgage information currently states that interest-only borrowing can potentially be arranged for terms of up to 35 years.
As with any interest-only mortgage, an acceptable repayment strategy will be important and the mortgage remains subject to underwriting and eligibility.
Do I Need to Be a Coutts Client to Get a Mortgage?
Coutts mortgages form part of its wider private-banking and lending proposition, so the potential banking relationship should be considered alongside the mortgage itself.
The exact eligibility requirements can depend on your circumstances and how you are introduced to the bank.
For example, Coutts currently publishes specific criteria for new mortgage clients introduced through intermediaries, while separate eligibility requirements apply to people seeking to establish a broader Coutts private-banking relationship.
This is one reason it can be helpful to establish eligibility at an early stage. A mortgage broker familiar with private-bank lending can assess whether Coutts appears suitable and, where appropriate, compare it with alternative lenders rather than assuming Coutts is the only private-bank option.
Who Might Consider a Coutts Mortgage?
A Coutts mortgage may be worth considering if you require a large mortgage or have financial circumstances that do not fit comfortably within standard high-street lending criteria.
This could include:
- high-net-worth individuals purchasing or remortgaging prime property;
- entrepreneurs and company directors;
- borrowers with substantial bonus, carried interest or equity remuneration;
- clients seeking a large interest-only mortgage;
- people with significant cash or investment assets;
- clients buying second homes or investment properties; and
- borrowers requiring a more bespoke assessment of their financial position.
However, private banking isn’t automatically the best solution simply because someone is wealthy.
Some mainstream or specialist lenders can offer highly competitive large-loan products, and the most suitable lender will depend on the size and structure of the borrowing, income, assets, property and longer-term objectives.
For this reason, a Coutts mortgage is best considered alongside the wider large-mortgage and private-bank market rather than in isolation.
Is Coutts the Best Private Bank for a Mortgage?
Not necessarily. Coutts is one of the UK’s best-known private banks, but the most suitable lender will depend on the individual transaction.
Different private banks and specialist lenders can take different approaches to:
- income and affordability;
- assets under management;
- minimum mortgage sizes;
- interest-only borrowing;
- loan-to-value;
- complex ownership structures;
- international income and residency;
- property type; and
- the wider banking or investment relationship.
A borrower may therefore meet Coutts’ criteria but still find that another private bank, specialist lender or mainstream lender offers a more suitable structure.
This becomes particularly important with large mortgages, where relatively small differences in interest rate, fees or lending structure can have a significant financial impact.
A mortgage broker can compare the available options before deciding whether Coutts is the right lender for the transaction.
Oportfolio Insight
From our experience arranging large and high-net-worth mortgages, the lender with the most recognisable private-banking name is not necessarily the lender that provides the best solution for every client.
The advantage of private-bank lending is often the ability to look at the client’s financial position in greater detail. However, the way different lenders assess complex income, assets, interest-only repayment strategies and large loan sizes can vary significantly.
For this reason, we assess the client’s borrowing requirement and financial structure first, then consider which lenders are most appropriate, rather than starting with a particular private bank and trying to make the client’s circumstances fit its criteria.
Speak to Oportfolio About a Coutts or Private Bank Mortgage
If you’re considering a Coutts mortgage, we can assess your circumstances and help determine whether Coutts or another private bank, specialist lender or mainstream lender is likely to provide the most appropriate solution.
At Oportfolio Mortgages, we arrange large and high-net-worth mortgages for clients with complex income, substantial assets and borrowing requirements that may need a more bespoke approach.
Rather than looking at one lender in isolation, we can assess the wider market and help structure your application around your income, assets, property and longer-term objectives.
