Private bank mortgages

A private bank mortgage is a home loan from a bank that focuses on wealthy clients. Instead of using a standard income multiple, the bank looks at the borrower's whole financial position and the value of the wider relationship, then agrees terms case by case. Private banking mortgage terms are usually set by a credit committee.

Private banks typically lend to people with high income, significant investable assets or both. Some set formal minimums for new clients, and many expect the borrower to bring investments, savings or other business to the bank, either before the loan or as a condition of it.

Private bank mortgages UK borrowers use are mostly residential loans on a main home, a second home or a portfolio of high-value property. Some banks also lend in other currencies or against property overseas.

The banking relationship can affect whether a private bank lends, how much it offers and the price. Banks may offer better terms to clients who hold investments or deposits with them, and some make holding a set level of assets a condition of the loan. The details are agreed with each client and written into the offer.

This can suit borrowers who want one bank for their mortgage, investments and day-to-day banking. It may suit others less well, for example if moving investments would mean selling assets, crystallising gains or leaving an existing manager they prefer.

Borrowers should check what happens if the relationship changes later. Some offers allow the bank to review the rate or terms if assets held with it fall below an agreed level.

Private bank mortgage lending criteria focus on the strength of the whole balance sheet rather than a single salary figure. Banks review income from all sources, liquid and illiquid assets, existing borrowing and the planned repayment route, and they may accept income types that standard lenders discount, such as irregular bonuses or investment returns.

Credit history, residency and the property still matter. Unusual properties, overseas income and complex ownership structures are often accepted, but they add underwriting and legal work.

Private bank mortgage lenders also apply affordability checks under the same FCA rules as other lenders, unless the customer formally meets the high net worth definition and the bank chooses to apply the tailored rules. That definition requires annual net income of at least £300,000 or net assets of at least £3 million (FCA Handbook, accessed 20 Oct 2026).

Private banks commonly offer structures that suit borrowers with large assets. A private bank interest only mortgage lets the borrower repay the capital from investments, a property sale or other assets at the end of the term, provided the bank accepts the strategy and reviews it over time.

A private bank offset mortgage links the loan to savings held at the bank so that interest is only charged on the difference. Other options can include multi-currency loans, revolving facilities secured on property and lending secured partly on an investment portfolio.

How interest-only payments compare with a repayment loan can be checked with the interest-only calculator using your own loan amount and rate.

Private banks and specialist lenders both handle complex and large loans, but they work differently. Private banks often price the mortgage with the whole relationship in mind and may require assets to be held with them, while specialist lenders usually lend on the property and income without asking borrowers to move investments.

Specialist lenders can be a better fit for borrowers who want to keep their investments where they are, or whose case does not suit a private bank's relationship model. Private banks may suit borrowers who value a single point of contact and broader banking services.

Private bank mortgage brokers can approach both groups and set out the conditions attached to each offer, so they can be compared on more than the headline rate. The wider market is covered in the guide to high net worth mortgages.