Setting up home overseas is always complicated, and one of the biggest challenges for Americans is opening a UK bank account.
The challenge of setting up home abroad
Many banks will require clients to be established UK residents first and to be able to demonstrate residency with reams of documentation. Many private banks that might be more flexible and helpful will look after Americans only if they are also managing their wealth.
Weatherbys offers banking, deposit and lending services, creating a safe place for the right clients to deposit cash and from which to manage their day-to-day financial needs.
We pay interest on dollar accounts and can lend money in dollars. We have also recently introduced a multi-currency credit card for clients.
No UK residency required
Crucially, we make opening an account simple and do not require American would-be clients to have UK residency. When I first joined the bank I was astonished at how much easier Weatherbys makes the process for Americans than other banks. So long as they can show their footprint here – a child studying at a UK university, for instance – we are happy to proceed.
Clearly, we are required by anti-money laundering legislation to carry out due diligence. We ask for copies of identification and address proof certified by a lawyer. But this is much less onerous than other banks.
I think a big part of why we can do this is that we have a cap on how many clients our bankers look after. We really get to know them well so we can support them.
I am often asked how much you need to deposit with Weatherbys to bank here. Typically, we charge clients a monthly management fee of £75. This is waived when the client has £300,000 in the form of cash or a loan.
We recognise it is important for clients who are depositing large sums with us that we can demonstrate our commitment to keeping that money safe. Weatherbys is unusually cautious in how it looks after cash held in the bank, which appeals to many clients. In its annual report last May the bank reported a liquidity coverage ratio of 896 per cent, far exceeding the regulatory minimum. The bank has a very conservative loan-to-deposit ratio, with lending accounting for just over half of the client deposits. The majority of the bank’s surplus liquidity is kept at the Bank of England.
Lending to American clients
Of course, we do lend to clients, and we extend this facility to our American clients. For instance, we had one American family recently who wanted to move here. They were concerned about the deteriorating dollar and wanted to purchase a property in London quickly without having to wait till they had sold their home in the US.
We first met them through video-conferencing facilities. They told us the home they wanted cost in the region of £3 million. There were also tax implications in liquidating assets held in the US at speed. We referred them to a specialist UK tax adviser to ensure they acted tax-efficiently and to a first-class conveyancing solicitor. We ensured the family had the best advice available.
By setting up a flexible £1.5 million overdraft loan, backed by their US-based wealth, we were able to facilitate the transaction so that the property deal was completed in just a month and repayment over several months following the sale of the family’s property across the Atlantic, from their monthly USD salaries and from gradual disposal of assets.
We set up a dollar account with preferential foreign exchange rates so that the family would be able to move money over from the US cost-effectively.
Their credit cards were sent to our office for safekeeping until they arrived in the UK, but we made sure they had Apple Pay and full banking capabilities in place before boarding the plane.
Suffice to say, they are very pleased with the outcome. We take pride in delivering a high standard of service and it’s always rewarding to see that reflected in the feedback we receive from our clients.
What you need to know
Your home may be at risk if you don’t keep up repayments on the mortgage or loan secured against it.
All our mortgages and loans are subject to underwriting and criteria. You must be 18 or over to apply. Terms and conditions apply.
Hannah Law is Private Banker for Weatherbys Private Bank, based in our Edinburgh office. Read more about our private banking offering in Scotland here.