Deutsche Bank re-enters UK mortgage market with high net worth service
Deutsche Bank Wealth Management has launched a regulated mortgage service to private banking clients in the UK.
The offering is available to clients who want to borrow at least £3m, initially to buy houses in the UK, but in future to buy in nine other countries including France, Italy and Spain.
Justin Minien has been hired as head of mortgage brokers from Metro Bank, who will support Matthew Spencer, head of intermediaries.
Michael Morley, head of Deutsche Bank Wealth Management in the UK, said: “This offering is a game-changer for Deutsche Bank Wealth Management in the UK and demonstrates our commitment to this market.”
Morley added: “Our sophisticated clients are increasingly coming to us looking for higher value borrowing for principal private residences, high value buy-to-let properties and commercial buildings here.
“We’ll now be able to meet the full spectrum of their needs in the UK, putting our deep international experience and investment banking capabilities to work on their behalf.”
Deutsche Bank will also cover mortgage refinancing and equity release, while the bank is prepared to offer large mortgages without assets under management.
The lender also offers unregulated lending, typically applying to commercial borrowers and properties, frequently arranged in coordination with the bank’s international corporate and investment bank.
The launch into mortgages follows a series of hires in London to build up Deutsche Bank Wealth Management’s capabilities in mortgage lending.
These include Saydam Salaheddin, previously at Credit Suisse, who has taken on the role of head of real estate for Europe, and James Lockyer, previously at SG Kleinwort Hambros, who will be reporting to Salaheddin as head of UK regulated mortgages.
Balaji Prasanna, global head of lending and deposits for Deutsche Bank Wealth Management, said: “Our strength in providing lending and liquidity solutions is a key differentiator for our business and I am confident that this decisive step into real-estate lending will give us another significant way to engage with our clients and provide market-leading solutions that few competitors can match.”
Deutsche Bank was previously in the mortgage market as DB Mortgages between 2006 and 2008, offering sub-prime, buy-to-let and self-cert mortgages.
The lender will be hoping its foray into the market goes more smoothly this time around, as DB Mortgages was fined £840,000 and forced to pay £1.5m in compensation to customers by then-regulator the Financial Services Authority in 2011 for lending irresponsibly.
In 2016 the DB Mortgages book was acquired by Elderbridge Limited.
Will Hale, chief executive at Key, said: “Wealth managers are increasingly recognising that their clients need support with property investment and access to a growing range of borrowing options including equity release.
“Deutsche Bank Wealth Management’s launch into the regulated mortgage market is further evidence of the shift in the market and a very welcome development.
“Equity release lenders are rapidly expanding the options available for customers enabling more people to address a wider range of financial issues in later life and that applies to wealth management clients. Equity release is a multi-purpose product which appeals to a wide range of older homeowners.
“Good independent expert advice is key to ensuring that they receive the most benefit from their property wealth. Making smart informed choices can have a hugely positive impact on both the borrower and their families.”