1. Is my loan large enough?
Most private banks set minimum loan sizes, often around £1m to £2m, and some lend £20m or more. Below that level, high-street or specialist lenders may offer simpler and cheaper options. Size alone is not a reason to choose a private bank.
Private banks are most useful when the loan is large and your circumstances do not fit standard rules. If your income is straightforward and well evidenced, a mainstream lender may suit you better. Our high-value mortgages page covers both routes.
2. Am I willing to move assets to the bank?
Many private banks expect you to place assets under management (AUM) with them. This is often around 10% to 30% of the loan, though it is negotiable. These assets might be investments, cash or pensions. The bank sees this as the start of a wider relationship.
Think about whether you would move assets anyway. If you are happy with your current wealth manager, the AUM requirement could be a cost rather than a benefit. Investments can fall as well as rise. Ask what happens if their value drops, or if you later move them elsewhere.
Some banks accept existing cash deposits or a pledge over investments instead of a full management mandate. Others offer a better rate as your relationship grows. These details are often negotiable, especially on larger loans, so it pays to compare more than one bank. Get any agreed terms in writing.
3. Is my income hard for mainstream lenders to assess?
Private banks underwrite manually, looking at your whole financial picture. This can help if you have complex or irregular income. Common examples include:
- Business owners drawing low salaries and retaining profits.
- Partners, fund managers and executives with carried interest or deferred pay.
- Investors with income from several countries or currencies.
- Individuals with significant wealth but modest current income.
Some private banks lend based on net worth and liquidity as well as income. That flexibility is often the main reason clients choose this route.
Expect detailed questions in return. Private banks carry out thorough checks on source of wealth and source of funds. Have statements, company documents and a clear history of how your wealth was built ready to share.
4. How will I repay the loan?
Interest-only is common with private banks. You need a clear and credible plan to repay the capital, such as the sale of assets, a business exit, investments or property. The bank will review this plan at the start and may revisit it during the term.
With interest-only, the debt does not reduce unless you make overpayments. If your plan relies on investments, their value may fall. Read our interest-only mortgages guide to understand the risks.
5. Do I need flexibility on currency or structure?
Some private banks lend in currencies other than sterling, such as US dollars or euros. They may also lend to trusts, companies or international structures that mainstream lenders avoid. This can suit international families and overseas borrowers.
Borrowing in a different currency from the property's value or your income creates exchange rate risk. Payments and the balance in sterling terms can move significantly. Take tax and legal advice on any structure before you proceed. Ownership through a company or trust can also affect stamp duty and other taxes.
6. What are the full costs and conditions?
Look beyond the headline rate. Private bank terms are often bespoke and may include arrangement fees, minimum investment periods and covenants. Ask the following questions before you commit:
- Is the rate linked to the size of my AUM, and can it change?
- Are there loan-to-value covenants if the property or investments fall in value?
- What fees apply on the investment side?
- Are there early repayment charges or notice periods?
- What happens at the end of the term?
Comparing these terms across several banks is where an experienced broker can add value.
7. Do I value the wider relationship?
Private banking clients often get a dedicated relationship manager, access to lending for other purposes and wider wealth services. If you will use these, the relationship may be worth having. If you only want a mortgage, a standard lender may be more efficient.
OMB is based in Mayfair and introduces clients to private banks and specialist lenders across the market. We compare these with high-street options, so you can see the trade-offs side by side. Read our guide what is a private bank mortgage or our private bank mortgages page.
If the answer to most of these questions is yes, a private bank may be worth exploring. If not, a mainstream lender may serve you just as well, for less.
Private bank mortgagesBespoke, wealth-based mortgages from private banks for high-net-worth borrowers with complex finances.
Explore private bank mortgagesFrequently asked questions
What is the minimum loan for a private bank mortgage?
Minimums vary, but many private banks start at around £1m to £2m. Some will consider smaller loans for clients with significant assets. For smaller or straightforward loans, high-street and specialist lenders may offer simpler options. A broker can compare both routes for you.
Do I have to move my investments to get a private bank mortgage?
Often, yes. Many private banks expect assets under management, commonly around 10% to 30% of the loan, but this is negotiable and some banks are more flexible. Consider fees, investment performance and how the bank treats falls in value before agreeing.
Are private bank mortgages more expensive?
Not necessarily. Pricing is individual and may improve with a larger relationship. However, you should consider investment fees, arrangement fees and any covenants, not just the rate. Comparing the total cost with mainstream options is the best way to judge value.
Can a private bank lend on interest-only?
Yes, interest-only is common with private banks. You need a credible repayment strategy, such as investments, business proceeds or property sales. The bank may review your plan during the term, and the debt will not reduce unless you overpay. Review your plan regularly.
Are private bank mortgages regulated?
A private bank mortgage on your own home is usually FCA-regulated. Some high-net-worth borrowers may qualify for exemptions that change the level of protection. Lending to companies or for investment property is often unregulated. Your adviser should explain which applies to you.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.