Private mortgage lenders and private mortgage companies

Private mortgage lenders are specialist, non-high-street lenders and private mortgage companies that provide mortgage finance outside standard bank criteria. Unlike private banks, most private mortgage companies do not require a wider banking or investment relationship; the lending decision is based on the security, the borrower profile, and the exit or repayment strategy.

Specialist private mortgage lending is generally priced above high street lending, reflecting the manual underwriting involved and the flexibility offered. For many borrowers, a private mortgage lender is a medium-term solution, with the loan refinanced to a mainstream product once income has seasoned, credit has repaired, or the property position has been regularised.

Because criteria between private mortgage companies differ significantly, and some lenders only accept applications through intermediaries, using a whole-of-market broker is often the most practical route to comparing private mortgage lenders.