Deutsche Bank launched a «game-changer» for buying homes. Private banking clients can now borrow several million pounds – with or without collateral.

The U.K. wealth management business is clearly an area of focus for Deutsche Bank – following the announcement of a senior appointment from Coutts earlier this week, the German lender has now confirmed it will help private banking clients buy homes in some of the world’s most desirable property markets.

The announcement is significant on many fronts, not least because it coincides with a softening in prices for high-end homes in London, which many clients are likely to see as a buying opportunity. Private banking clients who wish to borrow three million British pounds or more to buy homes will be able to do so at «competitive» loan-to-value and interest rates, according to a spokesperson for the bank.

Prepared to «dry lend»

The facility will initially be offered for clients buying homes in the U.K but is expected to be rolled out in Spain, Italy, and France – the top three destinations in Europe for luxury holiday homes – imminently. In addition, the private bank is offering to help clients manage their liquidity with mortgage refinancing and equity release options on existing properties.

The bank has also said it is prepared to «dry lend» – offer large mortgages without requiring assets under management (AuMs) for clients wishing to build a wider wealth management relationship.

Number One Priority

Access to real estate is «the number one priority for clients,» says a relationship manager at a rival European private bank in London that does not offer mortgages specifically but will open a line of credit against assets for clients.

«Clients can always walk down the street and go to a high-street lender like Barclays or HSBC to finance properties, but in reality, few do that,» he says, with clients preferring instead to consolidate «both sides of the balance sheet with one bank.» Not surprisingly then, Michael Morley, head of Deutsche Bank Wealth management in the U.K. called the move a «game-changer» for the bank.