Deutsche Bank has returned to the UK mortgage market with loans for wealthy borrowers instead of the sub-prime deals it offered before the financial crisis.
The mortgages for private banking clients have a minimum loan size of £3m.
Deutsche Bank Wealth Management is initially offering the loans on UK properties but plans to allow its customers to take out mortgages on homes in France, Spain, Italy and nine further countries in the near future.
It will also be offering equity release and remortgage options to clients.
As part of its relaunch into the UK mortgage sector, the bank has made a number of new appointments.
Saydam Salaheddin, previously at Credit Suisse, is the bank’s head of real estate for Europe.
James Lockyer, previously at SG Kleinwort Hambros, has been appointed head of UK regulated mortgages, reporting to Salaheddin.
Justin Minien has joined from Metro Bank as head of mortgage brokers and will support Matthew Spencer who is head of intermediaries at Deutsche Bank.
Deutsche Bank was previously active in the UK mortgage market before the financial crisis of 2008-2009.
At that time the lender was a significant player in the sub-prime sector through the brand DB Mortgages, but pulled out of the market in the wake of Northern Rock’s collapse and amid the turmoil affecting international investment banks like Lehman Brothers.
DB Mortgages was fined £840,000 by the City watchdog in 2011 and agreed to pay £1.5m in redress to borrowers over irresponsible lending, unfair treatment of customers in arrears and issues relating to the sales of interest-only and self-certification loans.
But Deutsche Bank’s return to the UK mortgage sector sees the lender targeting wealthy prime and even super prime borrowers instead of those with poor credit histories.
Deutsche Bank Wealth Management head Michael Morley says: “This offering is a game-changer for Deutsche Bank Wealth Management in the UK and demonstrates our commitment to this market.
“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 will now be able to meet the full spectrum of their needs in the UK, putting our international experience and investment banking capabilities to work on their behalf.”
Global head of lending and deposits Balaji Prasanna says: “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.”