Mortgage guide
Private home loans and private home financing
A private home loan is a residential mortgage arranged through a private bank or specialist lender for a home the borrower will live in, rather than an investment property.
- Published
- 17 Aug 2026
- Last reviewed
- 17 Aug 2026
- Reading time
- 2 min
Private home loans and private home financing
A private home loan is a residential mortgage arranged through a private bank or specialist lender for a home the borrower will live in, rather than an investment property. Private home financing is most commonly used by borrowers whose income or wealth structure does not fit standard residential underwriting, such as entrepreneurs, partners in professional firms, individuals paid substantially in bonuses or foreign currency, and buyers of high-value homes.
Private home lenders assess residential affordability on a bespoke basis. Rather than applying a fixed income multiple, private home lenders can consider retained profits in a business, investment income, vesting stock, pension assets, and liquid wealth when determining how much can be borrowed. This often allows a larger loan than a high street lender would offer against the same financial position.
Private home financing is regulated mortgage lending when secured on the borrower’s own home. Mortgage Lane is authorised and regulated by the Financial Conduct Authority (FCA), and advice on private home loans follows the same regulatory protections as any other regulated residential mortgage, unless a formal high net worth exemption is used and documented
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Private mortgage criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Borrowers | Personal names, limited companies, an LLP, trusts and offshore structures |
| Repayment type | Interest only, repayment, or part and part |
| Term | Up to 40 years on residential lending in our experience; each lender sets its own maximum |
| Minimum loan size | Set by each lender; some private banks and large loan lenders have a minimum loan size |
| Maximum loan to value (LTV) | Set by each lender for the borrower and the security |
| Income types considered | Salary, bonus, dividends, investment income and foreign currency income |
| Assets under management (AUM) | Required by some private banks; others offer dry lending without AUM |
| Residency | UK residents, expats and foreign nationals |
| Credit approach | Bespoke underwriting with manual assessment |
| Locations | England, Wales, Scotland and Northern Ireland |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Product fee | From £0-£995 |
| Type | Residential |
| Rates | From 4.59% |
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- Area:
- West Midlands
- Loan size:
- £92,000
Frequently asked questions
What is a private home loan?
A private home loan is a residential mortgage, arranged through a private bank or specialist lender, on a home the borrower will live in. It is used where income or wealth does not fit standard residential underwriting, for example for business owners, bonus-based earners and buyers of high-value homes.
What is a private mortgage?
A private mortgage is a mortgage arranged through a private bank or a specialist private mortgage lender instead of a mainstream high street bank. Private mortgages are underwritten individually, which is why they are used by borrowers with large loan requirements, complex income, or wealth held in investments, businesses, trusts or overseas assets.
Are private mortgages regulated?
A private mortgage secured on the borrower's own home is normally a regulated mortgage contract, overseen by the Financial Conduct Authority (FCA) in the same way as a high street residential mortgage. Lending for investment purposes can fall outside regulation, and where the borrower is a high net worth mortgage customer under the FCA definition some MCOB rules apply differently. Ask your adviser which protections apply to your arrangement.
Who are private mortgage lenders in the UK?
Private mortgage lenders in the UK are private banks and specialist private mortgage companies that lend outside high street criteria. Some accept applications only through intermediaries, so borrowers often reach them through a mortgage broker.
Are private mortgages interest only?
Private mortgages can be arranged on an interest-only basis, subject to a credible repayment strategy. Acceptable strategies can include the sale of the property, the sale of other assets, investment maturities or planned liquidity events such as a business sale, and the lender asks for evidence of the strategy and tests it during underwriting.
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