Strategic Borrowing in 2026: Key Insights from Our Webinar with Coutts

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Strategic Borrowing in 2026: Key Insights from Our Webinar with Coutts

Last week, we hosted a webinar with Coutts to explore strategic borrowing in 2026 and how sophisticated financing can strengthen your position when purchasing prime property. Our panel included Juliette Stacey (Middleton Board), Ashley Wilsdon (Head of London Buying at Middleton Advisors), Alex Webster (Head of Lending at Coutts), and James Rose (Private Banker at Coutts).

With mortgage rates expected to fall throughout 2026 and pent-up buyer demand returning to the market, understanding how to structure your borrowing has never been more important. Here are the key takeaways from our discussion.

The 2026 Market Outlook

Interest Rates and Buyer Sentiment

The market currently expects the Bank of England to cut the base rate twice more in 2026, bringing it down to 3.25% by year-end. However, Coutts predicts the rate could fall even further as inflation pressures ease and employment data remains subdued.

Crucially, mortgage rates are forward-looking in their pricing. Many of the anticipated rate cuts are already reflected in current fixed-rate offerings, meaning waiting for further cuts may not result in significantly cheaper borrowing costs – especially if increased buyer competition drives property prices higher.

Market Activity

After the hesitation that dominated 2025 following the Autumn Budget, we are seeing a notably busier start to 2026. The budget was less severe than anticipated for UK prime property, and with improving mortgage affordability, buyers who had been waiting are re-entering the market.

However, quality supply remains limited. Approximately 70% of the homes Middleton acquires are not on the open market, making it essential to work with advisors who can access off-market opportunities and identify motivated sellers.

International Demand

Exchange rates currently favour international buyers, particularly those with USD and EUR. We are seeing strong interest from US families, not just those relocating to the UK, but also those purchasing second or third homes as part of a global property strategy. Areas like St John’s Wood remain popular with American buyers, while the Cotswolds and Chilterns are attracting increasing attention.

How Private Banking Supports Complex Borrowing

  • Unlike high street lenders who rely on automated credit decisioning, private banks like Coutts take a relationship-based approach. They can:
  • Recognize complex income structures: bonuses, carried interest, partnership distributions, undrawn profits, and image rights
  • Consider broader asset bases: liquid investments, property portfolios, art, antiques, and specialist assets
  • Assess international income: across multiple currencies without requiring currency conversion
  • Take a longer-term view: looking beyond the last three years of accounts to understand earning patterns

As one example from the webinar, Coutts recently supported a media client with inconsistent recent income by analysing a 10-year trend, demonstrating stable earnings over the longer term and securing approval for high LTV lending.

Sector Expertise

Private banks have deep sector specialism, understanding the unique earning profiles of:

  • Sports professionals: accelerated career earnings requiring different assessment
  • Entrepreneurs: who reinvest profits back into businesses rather than taking high personal income
  • Private equity partners: paid primarily through carried interest on different vesting schedules

Product Flexibility

  • Beyond standard fixed-rate mortgages, private banks offer:
  • Multi-element mortgages: combining fixed and tracker rates to hedge against rate movements
  • Interest-only terms: up to 35 years, preserving liquidity
  • Offset mortgages: providing flexibility around cash management
  • High LTV lending: up to 90% for the right client and property
  • Multi-currency lending: in USD, EUR, JPY, and CHF to avoid FX risk

Alternatives to Traditional Bridging Finance

For clients who have not yet sold their existing property, several options exist beyond traditional bridging loans:

Additional Mortgage Borrowing

Releasing equity from an existing property through revaluation and increased borrowing, then using this to fund the deposit on a new purchase.

Investment-Backed Lending

Using an investment portfolio as security, typically at 1% above base rate – significantly cheaper than bridging finance and much faster to arrange as it does not require third-party valuations or legal work.

Flexible Loan Structures

For clients with clear future income (contracted earnings, recurring royalties), high initial LTV with aggressive amortization schedules over the first five years.

The key is having a conversation about your broader financial circumstances to determine which option best suits your situation, timeframe, and longer-term strategy.

How Borrowing Strengthens Your Negotiating Position

Pre-Approval is Critical

Speaking to your lender weeks or months before you intend to purchase allows you to front-load due diligence and minimise transaction time once you have identified a property. This positions you as a serious, ready-to-transact buyer.

Supporting Documentation

A letter from Coutts outlining your financial position carries significant weight with sellers and demonstrates credibility and certainty of funds.

Building the Right Team

Having your solicitor, surveyor, and lender appointed from the outset shows sellers you are organised and ready to move quickly – often as important as the offer price itself.

Tailoring Your Approach

Understanding why a seller is moving and structuring your offer accordingly can make the difference in competitive situations. A comprehensive offer includes exchange timeframes that accommodate the vendor’s circumstances, not just the highest number.

Key Takeaways

  1. Act now rather than waiting for rates to fall further: Current pricing already reflects anticipated cuts, and delayed purchasing may mean higher property prices offsetting any mortgage savings
  2. Mortgage pre-approval positions you competitively: Even against cash buyers if you have proper financing structures in place
  3. Private banks offer flexibility unavailable elsewhere: Particularly for complex income, international clients, and non-standard properties
  4. Front-load your due diligence: Building the right team before you find a property accelerates the process when you need to move quickly
  5. Quality supply remains limited: With busy market conditions returning, the window of opportunity may be closing

Contact Information

Middleton Advisors

  • Ashley Wilsdon, Head of London Buying: awilsdon@middletonadvisors.com

Coutts

  • Corinee Ackland, Wealth Manager, corinne.ackland@coutts.com

You can download the presentation slides here.