---
title: "Mortgage loans from private individuals"
description: "A mortgage loan from a private individual is an arrangement where a person, often a family member or private investor, lends money secured against a property instead of a bank. These privately funded arrangements sit outside mainstream mortgage products and carry legal and regulatory considerations for both parties, including whether the lender requires FCA authorisation for regulated mortgage contracts."
url: "https://mortgagelane.com/guides/private-bank-mortgages/mortgage-loans-from-private-individuals"
site: "Mortgage Lane"
collection: "guides"
date: "2026-08-17"
author: "Seren Norton"
category: "Mortgage guide"
reviewed: "2026-08-17"
reading_time: "2 min"
byline: "Seren Norton"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# Mortgage loans from private individuals

A mortgage loan from a private individual is an arrangement where a person, often a family member or private investor, lends money secured against a property instead of a bank. These privately funded arrangements sit outside mainstream mortgage products and carry legal and regulatory considerations for both parties, including whether the lender requires FCA authorisation for regulated mortgage contracts.

A mortgage loan from a private individual is an arrangement where a person, often a family member or private investor, lends money secured against a property instead of a bank. These privately funded arrangements sit outside mainstream mortgage products and carry legal and regulatory considerations for both parties, including whether the lender requires FCA authorisation for regulated mortgage contracts.

[Private bank mortgage](https://mortgagelane.com/definitions?term=private-bank-mortgage)

Specialist lending

A mortgage provided by a private bank, often assessed alongside the borrower’s wider assets, income and banking relationship.

[Read the full definition of Private bank mortgage](https://mortgagelane.com/definitions?term=private-bank-mortgage)

Back to overview

[Private Mortgages](https://mortgagelane.com/specialists/private-bank-mortgages)

Related definitions

[Mortgage](https://mortgagelane.com/definitions#def-mortgage)

·

[Regulated mortgage](https://mortgagelane.com/definitions#def-regulated-mortgage)

## Mortgage loans from private individuals

A mortgage loan from a private individual is an arrangement where a person, often a family member or private investor, lends money secured against a property instead of a bank. These privately funded arrangements sit outside mainstream mortgage products and carry legal and regulatory considerations for both parties, including whether the lender requires FCA authorisation for regulated mortgage contracts.

Private individual lending is sometimes used within families, for example parents supporting a purchase. Where family money is involved, there are often better-protected alternatives, such as gifted deposits, joint borrower sole proprietor mortgages, or a formal second charge, that keep the main mortgage with a regulated lender.

If you are considering lending or borrowing privately against property, we can explain how the arrangement would interact with mainstream and private mortgage lending, and where formal legal advice is required.

## Talk it through with an adviser

Speak to a Mortgage Lane adviser about your circumstances and the next steps.

Published: 2026-08-17

Last reviewed: 2026-08-17

Source: https://mortgagelane.com/guides/private-bank-mortgages/mortgage-loans-from-private-individuals