| Typical loan size | Often £1m–£2m minimum; up to £20m+ |
|---|---|
| Typical AUM expectation | Often 10–30% of the loan, by negotiation |
| Underwriting | Manual, based on net worth, liquidity and income |
| Repayment | Interest-only common; capital repayment available |
| Typical clients | HNW and UHNW individuals, families, entrepreneurs |
| Currencies | Some lend in sterling, US dollars, euros and others |
| Regulation | Usually FCA-regulated for your home; exemptions possible |
Who is this for?
- High-net-worth individuals whose wealth is mainly in investments or business assets
- Entrepreneurs with irregular income, dividends or liquidity events
- International families with assets and income across several countries
- Borrowers seeking large interest-only loans
- Clients who want banking, investment and lending under one relationship
What is a private bank mortgage?
It is a mortgage from a private bank or wealth manager, designed around the borrower rather than a standard product. Private banks look at your whole balance sheet: investments, business interests, property, liquidity and future income. They can tailor the term, repayment structure and security to your plans.
Private bank lending is usually one part of a wider relationship. The bank often expects you to hold investments or deposits with it. Our guide what is a private bank mortgage? covers the basics.
Private banks typically offer a named relationship manager who coordinates lending, investments and day-to-day banking. Decisions are made by credit committees that can approve exceptions to standard policy where the overall relationship supports it.
Who can get a private bank mortgage?
Private banks generally lend to high-net-worth individuals. Many set a minimum level of investable assets or net worth, and minimum loan sizes often start around £1 million to £2 million. Exact thresholds are set by each bank and are rarely published.
Private banks often suit people whom high-street lenders find hard to assess:
- Business owners who draw little salary but hold significant assets
- Partners and executives with large deferred or equity-based pay
- Clients with income in several currencies or jurisdictions
- Retirees or heirs with wealth but modest earned income
- Buyers of unusual, very high-value or international-style properties
Some private banks also serve clients they expect to become wealthier, such as young founders, senior professionals or those due an inheritance. A clear, well-presented case matters more than meeting a published threshold.
What are assets under management (AUM) requirements?
Many private banks ask borrowers to place investments with them, known as assets under management. A common expectation is 10–30% of the loan amount, sometimes more. The figure is often negotiable and depends on the loan size, your wider relationship and the bank's appetite.
AUM can bring benefits, such as better pricing, higher LTVs or more flexible terms. It also has costs. Investment management fees apply, and returns are not guaranteed. Some banks may take a charge over the portfolio as extra security. Investments can fall in value, and the bank may ask for more security if they do. You should weigh the total cost of the relationship, not only the mortgage rate.
Some banks reduce or waive AUM for clients bringing significant deposits or other business, or accept a phased transfer.
How does bespoke underwriting work?
Instead of strict income multiples, a private bank's credit team builds a picture of your wealth and cash flow. They may count investment returns, expected bonuses, dividends, trust distributions or the proceeds of a planned sale. They also assess how easily you could repay from liquid assets.
This flexibility allows structures that mainstream lenders may not offer. Examples include interest-only lending at higher loan sizes, loans in other currencies, lending to trusts or companies, and combining property with portfolio-backed facilities. Each bank has its own appetite, so the same case can receive very different terms.
What are the risks of private bank lending?
Private bank mortgages can be excellent tools, but they need careful thought.
- Interest-only: you need a reliable plan to repay the capital.
- Investment risk: pledged portfolios can fall in value, triggering requests for more security.
- Currency risk: loans in a currency different from your income or assets can grow in value.
- Relationship terms: moving investments away later may affect your loan terms.
- Annual reviews: some facilities are reviewed periodically rather than fixed for the full term.
We explain these points before recommending any facility.
Fees may include an arrangement fee, valuation and legal costs for the bank's solicitors, as well as investment management charges. Ask for all costs in writing, and compare offers on a like-for-like basis. We help you do this.
What could a private bank mortgage look like in practice?
Structures vary widely, so these are illustrations rather than offers. A founder with modest salary but substantial investments might borrow interest-only against a London home, with part of their portfolio managed by the bank. An executive with large deferred pay might have future vesting considered alongside base salary.
An international family might borrow in sterling against a London home while holding dollar investments with the bank. A client expecting a business sale might use a shorter facility, repaid from the proceeds. In each case, the bank tailors security, term and repayment to the client's balance sheet. That flexibility is the main reason borrowers choose a private bank.
Why use a broker to access private banks?
Private banks receive many enquiries and focus on cases that fit their appetite. A broker who knows their criteria can present your case in the right way to the right banks. That can save time and lead to stronger terms. It also lets you compare banks, rather than relying on one existing relationship.
OMB is an independent, whole-of-market broker based in Mayfair. We work alongside your wealth manager, accountant and lawyers. We may approach several private banks and high-value mainstream lenders, then compare pricing, AUM expectations and conditions side by side. A broker fee may apply, and we may also receive commission from the lender. We set out both clearly before you proceed. See also our high-value mortgages page.
How do I prepare for a private bank application?
Private banks carry out detailed onboarding and know-your-client checks. Good preparation shortens the process and strengthens your position in negotiations.
- A personal balance sheet listing assets, liabilities and income sources
- Statements for investment portfolios, pensions and cash
- Evidence of source of wealth, such as business sale documents or inheritance
- Tax returns and accountant's confirmation of income
- Details of any trusts, companies or other structures involved
We help you assemble this pack and present it to banks clearly.
How we arrange it
- Free, confidential 15-minute call
- Review of assets, income, structure and goals
- Discreet approaches to selected private banks
- Term sheets compared, including AUM and fees
- Credit approval, legal work and completion managed
Example cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£5m Mayfair purchase via a private bank with assets under management
£3.5m Knightsbridge purchase for an overseas family with global assets
£2.5m private-bank refinance in Cobham for a founder with share-based wealth
From the blogIs a private bank mortgage right for you? 7 questions to ask
Read the articleFrequently asked questions
What is the difference between a private bank and a high-street mortgage?
A high-street lender mainly uses income multiples and automated scoring. A private bank underwrites each case manually, looking at total wealth, liquidity and future income. Private banks can be more flexible on structure and loan size, but usually expect a wider relationship, such as holding investments with them.
How wealthy do I need to be for a private bank mortgage?
Each bank sets its own thresholds, and they are rarely published. Many look for significant investable assets or net worth, often in the millions, and minimum loans of around £1 million to £2 million. Some private banks have lower entry points for clients with strong prospects.
Do I have to move my investments to a private bank?
Often, yes, though not always. Many private banks expect assets under management of around 10–30% of the loan. The amount can sometimes be negotiated or reduced over time. Some banks will lend without AUM for strong cases, usually at different pricing.
Can a private bank lend against my investment portfolio?
Yes. Some private banks offer lombard or portfolio-backed loans secured against investments, alongside or instead of a mortgage. These can provide flexible liquidity, but if the portfolio falls in value, the bank may ask you to add security or repay part of the loan.
Are private bank mortgages more expensive?
Not necessarily. Pricing may be competitive, especially for large loans with AUM. However, you should consider the full cost, including investment management fees and any arrangement fees. Comparing the total cost of the relationship gives a fairer picture than comparing headline rates.
Can a private bank lend if most of my income is from dividends?
Yes, this is a common private bank scenario. Underwriters may look at company profits, retained earnings, personal assets and dividend history rather than salary. They want confidence that you can service and eventually repay the loan from your wider wealth.
Can private banks lend to non-UK residents?
Many private banks lend to international clients, including non-residents buying in prime London. They will carry out thorough source-of-wealth and anti-money laundering checks. Some countries of residence are harder to place. Lending in other currencies may also be available. We prepare these documents with you early.
Are private bank mortgages always interest-only?
No. Interest-only is common, but capital repayment and part-and-part options are available. Interest-only borrowers must show a clear plan to repay the loan. If that plan relies on investments or a future sale, the risk is that values fall short.
How long does a private bank mortgage take?
It varies. Bespoke underwriting, credit committee approval and onboarding checks can take longer than a standard mortgage, especially for international clients. Having clear evidence of wealth and income ready speeds things up. We set realistic timescales at the outset. Allow extra time if a purchase deadline applies.
Can a private bank lend to a trust or company?
Some private banks lend to trusts, companies or other ownership structures, which mainstream lenders often avoid. They will review the legal structure, beneficiaries and guarantees in detail. Tax and legal advice on the structure is essential before you proceed. Fewer banks will consider these structures.
Is a private bank mortgage regulated?
If secured on a home you or your family live in, it is usually regulated by the FCA. Some high-net-worth borrowers may choose to use an exemption that removes certain regulatory protections. Lending to companies and most investment property is generally not regulated. We explain which applies to you.
Should I approach my own private bank directly?
You can, and your existing bank may offer good terms. A broker can compare its offer with other private banks and high-value lenders. This helps you understand whether the terms and AUM expectations are competitive. We work alongside your existing advisers.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice: up to 1% of the loan, typically £500.