| Typical loan size | Often £1m+; some banks start lower |
|---|---|
| Assessment | Overall wealth, assets and income prospects |
| Relationship requirement | Often investments or deposits held with the bank |
| Repayment types | Interest-only common, with a repayment plan |
| Regulation | Regulated if on your home; buy-to-let often unregulated |
What is a private bank mortgage?
It is a mortgage arranged through a private bank's lending team as part of a wider banking relationship. Each case is underwritten individually by people, not a scorecard.
Private banks lend on prime homes, second homes and investment property. Many clients have complex income, international assets or wealth held in investments rather than salary. OMB arranges private bank mortgages and high-value mortgages for clients in Mayfair, London and beyond.
Who qualifies for a private bank mortgage?
Each bank sets its own entry level, but most look for significant income, net assets or both. Typical clients include:
- Business owners and entrepreneurs with irregular income.
- Senior executives with large bonuses or share awards.
- Partners in law, accountancy and finance firms.
- International clients with income or assets in several countries.
- People with substantial investments but modest taxable income.
Minimum loan sizes vary. Many start around £1 million, though some will consider less for the right relationship.
How is a private bank mortgage different from a high street mortgage?
High street lenders mostly follow set rules on income multiples and loan size. Private banks take a broader view of your finances.
| High street lender | Private bank | |
|---|---|---|
| Assessment | Mainly income multiples and scoring | Whole balance sheet, case by case |
| Income types | Salary preferred | Bonuses, dividends, carried interest, investments |
| Loan size | Often capped at lower levels | Large loans common |
| Relationship | Not usually required | Often expected |
Do you have to move your investments to the bank?
Often, yes. Many private banks ask clients to place assets under management (AUM) or cash deposits with them. This may be a percentage of the loan. Some banks waive or reduce this for strong cases.
Consider this carefully. You may pay investment management fees, and moving assets may trigger tax or costs. In some cases assets are pledged as extra security, so a fall in their value could lead to a request for more security or partial repayment.
Are private bank mortgages interest-only?
Interest-only is common, because many clients plan to repay from investments, business sales or other property. The bank will still need a credible repayment plan. Some offer part-and-part or full repayment loans.
Interest-only keeps monthly payments lower, but the full debt remains at the end of the term. If your repayment plan underperforms, you may have to sell the property. Read our interest-only mortgages guide.
What are the benefits and risks?
The main benefits are flexibility and a personal approach. Benefits can include:
- Assessment of complex or international income.
- Larger loans and tailored structures.
- Lending on unusual or very high-value property.
- A single relationship for banking, investments and lending.
The risks include relationship requirements, possible fees on investments, and pricing that is not always cheaper than the high street. Loans may be reviewed periodically. Your home may be repossessed if you do not keep up repayments.
Why use a broker for a private bank mortgage?
Private banks do not publish full criteria, and many work only with introducers they know. A broker can approach several banks, present your case clearly and compare their terms, including relationship requirements.
OMB works with private banks and specialist lenders, and can also compare high street options. Sometimes a mainstream lender is the better fit, and we will say so.
Most private banks expect you to open a current account, and mortgage payments are usually taken from it. A broker can help you understand each bank's onboarding requirements, documents and timescales before you commit, so there are fewer surprises close to exchange.
What can a private bank mortgage be used for?
Private banks lend for a wide range of purposes, often within one facility. Common uses include:
- Buying a prime main home, including in central London.
- Buying a second home or a home for family members.
- Refinancing to release equity for investment or business use.
- Lending on property held in trusts or companies.
- Funding a purchase while a sale or liquidity event completes.
Facilities may sit alongside other lending, such as loans secured on investment portfolios. Each use is assessed on its merits.
Sources
- MoneyHelper: Ways of repaying an interest-only mortgage
- FCA: The FPC's mortgage market recommendations
- FCA: Interest rate stress test rule
Frequently asked questions
What is the minimum income for a private bank mortgage?
There is no single minimum. Each bank sets its own threshold based on income, net assets or both. Some look for six-figure income, others focus on liquid wealth. A strong overall balance sheet can matter more than salary alone.
Do private banks offer better rates?
Sometimes, but not always. Pricing is negotiated case by case and may depend on how much you invest with the bank. The total cost should include any investment fees. A broker can compare private bank terms against high street and specialist lenders.
Can a private bank lend more than 4.5 times income?
Yes, they can. Private banks often assess your wealth and future earnings, so they may lend above standard income multiples. High loan-to-income lending is still limited across the market, and the bank must be satisfied the loan is affordable.
What is AUM in a private bank mortgage?
AUM means assets under management. It is the investments or cash a bank manages for you. Many private banks ask you to place a level of AUM with them as part of the lending relationship. The amount and terms are agreed case by case.
Can foreign nationals get a private bank mortgage?
Yes. International clients are a core market for many private banks, including those with income and assets in several countries. Banks will carry out detailed checks on source of wealth and funds. Country restrictions vary between banks.
Are private bank mortgages regulated?
A private bank mortgage on a home you or your family live in is usually regulated by the FCA. Loans for investment property, or to companies and trusts, are often not regulated. We will tell you which applies before you proceed.
Can I use a private bank mortgage for a buy-to-let?
Some private banks lend on investment property, including high-value lets and portfolios. Assessment usually considers your wider wealth as well as rental income. Most buy-to-let lending for investment is not FCA-regulated, so fewer protections apply.
How long does a private bank mortgage take?
It varies with complexity. A straightforward case may take a few weeks, while international income, trusts or companies can take longer. Onboarding checks on source of wealth often take the most time. Starting early and preparing documents in advance helps keep the purchase on track.
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.