View more on these topics

BoS reveals plans to target the rich

Bank of Scotland says it will target the growing number of high net worth borrowers in the UK.

Research collated by market analyst Datamonitor reveals there are over 916,000 people in this country with assets of more than 200,000, and that number is expected to rise.

The high net worth population rose by 12% during 2004 alone.

BoS says this trend may cause private banking providers to rethink the products and services they offer, especially with the growing demand among consumers for personalisation and ethical investing.

John Lloyd, head of mortgages at BoS, says: “We are definitely going to launch some products for this sector in November. High net worth clients don’t just want good service and good deals at the start of the loan, they want to be looked after all through the life of the mortgage. They need to be managed carefully.”

He adds: “We will also have to look at offering self invested personal pensions as they will appeal to the high net worth sector. There has to be a breadth of products for this sector as it must be flexible. You can’t simply keep giving these people the cheapest rates.”

Barclays Private Bank continues to be the largest player in the country in this sector, with the value of its high net worth individuals’ liquid assets standing at 534.4bn.

London and the South-East have the highest earning individuals in the country. Full-time workers in Kensington and Chelsea earn on average 1,252 per week.

But despite the increase in the high net worth population, the number of million pound properties sold this year has fallen by 26%.

Recommended

MI B2L exclusive

Mortgage Intelligence has secured a buy-to-let exclusive with a 4.5% fixed rate for three years and no arrangement fee. At the end of three years, the rate reverts to base rate plus 1.5% for a further two years. At the end of the fix there is a two-year redemption with a discount, so it reverts […]

Lending Solutions acquires estate agent

Lending Solutions, the owner of Your Move estate agents and e.surv chartered surveyors, has bought Reeds Rains Estate Agents for a reputed 22m. The acquisition by the residential property services group is the latest move in the consolidation process taking place in the house buying industry in preparation for the introduction of Home Information Packs […]

Are headline-grabbers the best deals?

BM Solutions recently launched a batch of mainstream products starting at 3.75% in what was considered by some as a move to stave off negative publicity after the departure of key staff. Though the headline rates grabbed the attention of brokers, the fee of 1,499 led some to comment that the deals would only be […]

The Mortgage Mole

HEAVE TWO Mole was fed to the fishes last Monday as Mortgage Strategy played host to our annual fishing trip. Now in its third year, the Loan Shark reunion proved to be popular, well, at least to those who managed not to be sick. Mole wouldn’t have blamed Iain Williamson and Dave Horsman from BM […]

Newsletter

News and expert analysis straight to your inbox

Sign up