ASK THE EXPERT

Scottish Field, June 2019




DUNCAN GOURLAY SPOKE TO THE SCOTTISH FIELD IN THEIR LATEST ASK THE EXPERT COLUMN TO ANSWER A QUESTION ABOUT INTEREST RATES AND THEIR IMPACT ON BORROWING


Does the current low interest rate environment make it easier to borrow money?

The logical answer should be absolutely yes. However, if we take the example of Scotland, home to a large number of country estates many owners are struggling to preserve and diversify them as they can’t get access to the necessary funds. Whilst estate owners are having to come up with more and more innovative ways to increase and diversify their income streams, sourcing funding is always the biggest hurdle to overcome.

Why? Because too many lenders today are inflexible and rely on the rigidity of credit scoring and box ticking and frequently insist upon marketing assets for sale as security. More often than not estates do not wish to use capital, preferring to build their asset base, reinvesting income to support the estate going forward and the next generation. 

Most lenders are not prepared to invest the time to understand the estate’s current position but even more importantly, where they want to get to and how long it will take. This makes them incapable of seeing the bigger picture and an estate’s potential.

Unlike most lenders Weatherbys Private Bank treats each client as an individual and an extension of the family. We firmly believe that lending solutions should be tailored around clients, where the bigger picture is looked at taking a long term view with trust, agility and flexibility applied to make an informed decision. Our decisions are made by people not machines. 

We firmly believe that understanding an estate’s varied income streams and diverse asset base is key to being able to put together a tailored facility. This might mean that some want to balance the need for certainty in payments and length of facility using fixed rates, while others may want the flexibility of repayment that a variable rate facility brings. For clients who want a very high level of service and the ability to talk to decision makers not a massive corporate function, Weatherbys is one of the few private banks you can go to.
 
Risk Warning: Your home/property may be repossessed if you do not keep up repayments on a mortgage or any debt secured against it. Our mortgages and loans are subject to underwriting and criteria. Over 18’s only. Terms and conditions apply.

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