The UK private bank and wealth manager said it brought down mortgage prices to ensure competition with the market.

Coutts has reduced rates for clients across residential and buy to let mortgages, with a 20 basis point discount for lending greater than £5 million ($6.5 million).

The reductions across residential mortgage rates are as follows:

• 2 year base rate tracker reduced by 20bps to 1.74 per cent (base + 1.49 per cent) 
• 2 year fixed rate reduced by 40bps to 1.95 per cent 
• 5 year fixed rate reduced by 80bps to 2.19 per cent 
• 10 year fixed rate reduced by 100bps to 2.99 per cent

As for buy to let mortgage rates, the 2 year and 5 year fixed rate has been reduced by 20bps to 2.45 per cent and 3.09 per cent respectively.

“Today, with a loan to deposit ratio of 47 per cent, we stand ready to support clients looking for both competitive rates and borrowing in often complex circumstances,” said James Clarry, head of lending and capital management at Coutts.

“Our lending service is highly flexible and we understand that many of our clients do not fit neatly into a box – that’s why we assess the entire holdings of a client when making lending decisions, looking beyond simple income. We know, for example, that many of our entrepreneurial clients prefer to invest in their business rather than take a salary and we therefore offer flexible affordability calculations tailored to their needs.”

The new rates also apply to clients of Adam & Company, a fellow Royal Bank of Scotland subsidiary.

Headquartered in London, Coutts is part of the commercial private banking division of RBS, which sold Coutts’ international arm to Switzerland's Union Bancaire Privee last year. Earlier this year, Coutts announced plans to close a third of its branches in England amid new delivery systems and changing client preferences about where it does business.