Private Mortgages

A private bank mortgage is a mortgage provided by a private bank, usually to high net worth clients, and underwritten on a bespoke basis rather than through standard affordability models. Private banks assess the borrower’s overall wealth, income streams, and asset position, which allows greater flexibility on loan size, interest-only borrowing, and complex ownership structures.

Many private banks link mortgage lending to a wider banking relationship. This can include a requirement to place assets under management (AUM) with the bank, such as investment portfolios, as a condition of lending. In return, borrowers may access preferential pricing, higher loan-to-value tolerance on large loans, or lending against income and asset types that mainstream lenders decline.

Some private banks also offer what is known as dry lending, meaning a private bank mortgage without any AUM requirement. Availability of dry lending varies with market conditions and the strength of the applicant profile, which is why whole-of-market advice is important before committing to a single institution.

Private bank mortgages are commonly used for high-value residential purchases, refinances of unencumbered property, interest-only borrowing into retirement, and lending to expats, foreign nationals, and borrowers using trust or corporate structures.

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

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.

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.

A large mortgage, sometimes called a million-plus mortgage, is a loan size above the comfortable lending range of most high street banks and is usually arranged through private banks or specialist large loan lenders. Loan size thresholds vary by lender.

How to get a large mortgage depends less on headline income and more on how the overall financial position is presented. Lenders offering large mortgages will consider total remuneration, business ownership, investment portfolios, and existing property assets, and will structure the loan around the borrower’s liquidity and long-term plans, for example using interest-only with a sale or investment-based repayment strategy.

Large mortgage cases benefit from early preparation. Assembling evidence of income, assets, and source of wealth before approaching lenders shortens underwriting, supports stronger terms, and reduces the risk of a declined application affecting future approaches to other institutions.

A private mortgage is a mortgage arranged through a private bank or specialist private mortgage lender rather than a mainstream high street bank. Private mortgages are underwritten individually, making them suitable for borrowers with large loan requirements, complex income, or wealth held in investments, businesses, trusts, or overseas assets.

To get a large mortgage, borrowers usually approach private banks or specialist large loan lenders through a broker, presenting full evidence of income, assets, and source of wealth. Large mortgage lenders assess total remuneration, business interests, and investment assets, and can structure lending on an interest-only basis with a documented repayment strategy.

Private banks can offer competitive mortgage terms on large loans, particularly where a wider banking or investment relationship is in place. Pricing is bespoke rather than published, so private bank mortgage rates vary by case and are best compared against specialist and mainstream alternatives through a whole-of-market broker.

A private home loan is a residential mortgage for a home the borrower will live in, arranged through a private bank or specialist lender. Private home loans are used where income or wealth structures do not fit standard residential underwriting, such as business owners, bonus-based earners, and buyers of high-value homes.

Yes, foreign nationals can obtain private mortgages on UK property through private banks and specialist lenders. Lenders will assess residency, visa status where relevant, the currency of income, and source of wealth, and may apply different loan-to-value limits to overseas borrowers.

Private mortgage lenders in the UK include private banks and specialist private mortgage companies that lend outside high street criteria. Many private mortgage lenders accept applications only through intermediaries, which is why borrowers commonly access private mortgage lending through a whole-of-market mortgage broker.

Private mortgages secured on the borrower’s own home are regulated mortgage contracts overseen by the Financial Conduct Authority (FCA), in the same way as high street residential mortgages. Certain high net worth or investment-purpose lending can fall outside standard regulated advice frameworks, so borrowers should confirm what protections apply to their specific arrangement.

Not always. Some private banks require assets under management (AUM) as a condition of mortgage lending, while others offer dry lending with no AUM requirement. Whether an AUM condition applies depends on the institution, the loan size, and the strength of the overall borrower profile.

Yes, complex income is one of the main reasons borrowers use private mortgage lending. Private mortgage lenders can assess bonuses, dividends, retained company profits, partnership drawings, investment income, and foreign currency earnings, weighting each income stream individually rather than applying a standard affordability calculation.

Yes, private mortgage lenders can lend to limited companies, limited liability partnerships, trusts, and some offshore structures. Lending to a structure usually requires personal guarantees from the individuals behind it, along with full disclosure of beneficial ownership for anti-money laundering purposes.