For many high-net-worth (HNW) families, the private bank is the natural first port of call for complex property finance. These institutions understand wealth structures, deal in large loans, and offer relationship-led service. Yet in 2025, even private banks regularly say “no” — particularly when property is held in trust.

That refusal often comes as a surprise. Families who have banked with the same institution for years can suddenly find doors closed when they attempt to refinance or leverage trust-owned assets. The reason lies in risk appetite, regulation, and the fine print of trust deeds. Fortunately, a decline from a private bank is not the end of the road. With the right broker, families can access whole-of-market solutions that achieve their goals without undermining their estate planning.

Why Private Banks Sometimes Say No

Private banks have a reputation for flexibility, but they are still governed by internal credit policies. Trust-based lending introduces issues that many banks would rather avoid.

One key concern is enforceability. If a property is owned by a discretionary trust, the bank may question whether it can enforce its charge in the event of default. Another issue is transparency of ownership. Regulatory requirements around anti-money laundering and know-your-customer rules mean banks must identify ultimate beneficial owners. With multi-generational trusts or offshore jurisdictions, this can become opaque.

Risk appetite also plays a role. Some private banks are happy to work with UK onshore trusts but decline offshore structures entirely. Others will consider only bare trusts or life interest trusts. A family with a Jersey discretionary trust, for example, may find that only a handful of lenders are willing to engage — and not always their current bank.

The Impact on Families

For families, a decline can be disruptive. Plans to refinance may stall. Liquidity required for inheritance tax (IHT) or succession planning may dry up. In some cases, the inability to access lending against trust-owned property can force premature sales of valuable assets.

We saw this play out in a recent case where a family sought to refinance a Prime Central London property held in an offshore trust. Their long-standing private bank declined, citing policy restrictions. Without alternatives, the family risked losing control of the property at a critical juncture. Only by approaching the wider market through a specialist broker did they identify a lender comfortable with the structure, preserving both liquidity and legacy.

Alternatives Beyond the Private Bank

This is where the breadth of the market matters. While one institution may decline, another may be willing — often with only subtle differences in criteria.

Specialist lenders: Some boutique institutions have carved out niches in trust-based lending. They are accustomed to reviewing complex deeds and are willing to consider cross-collateralisation or personal guarantees.

Alternative credit providers: Family offices and specialist funds sometimes extend secured facilities against trust assets, particularly where speed is required. While pricing may be higher than private banks, flexibility can outweigh cost when liquidity is urgent.

Bridging finance: Short-term lenders are often more willing to accept trust-owned property as security, particularly where an exit strategy is clear. This can provide a temporary solution, buying time to restructure assets or secure longer-term lending.

Each of these alternatives requires careful structuring — but they demonstrate that a “no” from a private bank does not mean the end of the conversation.

Where Whole-of-Market Brokers Add Value

Families often discover that the problem is not the trust itself, but the way it is presented to lenders. Whole-of-market brokers, familiar with lender appetites, know how to package cases so that underwriters understand the risks — and how they are mitigated.

For example, where a trust deed contains unusual provisions, a broker may work with lawyers to clarify enforceability, presenting a legal opinion alongside the application. Where offshore jurisdictions are involved, the broker ensures that AML checks are satisfied upfront, reducing friction at credit committee.

This is more than administration — it is advocacy. In many cases, the difference between a decline and an approval lies in how the story is told.

Linking to Related Planning Challenges

Trust-based lending rarely exists in isolation. Families encountering obstacles often also face liquidity challenges tied to inheritance or probate. Our recent blog on Financing Property Held in Family Trusts explored why lenders hesitate and how structures influence appetite. Likewise, Probate Finance in 2025 demonstrated how liquidity gaps can derail estate plans.

By situating trust finance within these wider contexts, families gain a clearer view: the challenge is not just one bank’s policy, but the need for integrated solutions across lending, estate planning, and succession.

Real Life Example: Finding a Solution When a Bank Declines

A UHNW family approached their long-standing private bank to raise £8 million against a portfolio of properties held in a Guernsey trust. The bank declined outright, citing internal restrictions on offshore trusts. The family turned to Willow Private Finance.

Through our network, we identified two lenders with appetite for offshore trust structures, provided that trustees gave formal consent and personal guarantees were in place from adult beneficiaries. After negotiating terms, the family secured the facility they needed. The funds were used to settle tax liabilities and reinvest into a new property acquisition, while the trust structure remained intact.

The lesson is clear: one bank’s “no” does not define the market. With a whole-of-market approach, solutions can almost always be found.

How Willow Can Help

At Willow Private Finance, we specialise in the cases that fall outside the neat boxes of mainstream criteria. For families facing a decline from their private bank, our value lies in:

• Market access: We know which institutions are open to trust-based lending in 2025 — and which are not.

• Structuring expertise: We work with lawyers, trustees, and advisers to present cases in ways that credit committees can accept.

• Alternative strategies: Where mainstream routes fail, we identify specialist or bridging options that preserve liquidity.

• Relationship focus: We do not just arrange loans; we align finance with families’ estate planning and legacy goals.

When private banks step back, Willow steps forward — ensuring that families still achieve the outcomes they need.

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