For a certain type of borrower, the mainstream mortgage market simply isn't built to fit. Complex income structures, international assets, share portfolios used as security, or property values that sit well outside what a high street lender's affordability model can digest — these are everyday realities for high-net-worth clients, and they're precisely where private bank mortgages earn their keep.
At Oakstead Finance, we arrange private bank mortgages for clients across SW London and beyond, and this guide sets out exactly what they are, how they differ from the high street and specialist alternatives, which banks to consider, and how the process actually works in practice.
What Is a Private Bank Mortgage?
A private bank mortgage is a lending facility offered as part of a wider wealth management relationship, rather than a standalone product sold off a rate sheet. Private banks lend against the full picture of a client's finances — assets under management, investment portfolios, business interests, and future income — not simply a multiple of salary.
This relationship-led approach means two borrowers earning identical salaries can receive very different terms, depending on their broader financial relationship with the bank. It also means the product is fundamentally negotiable: rate, structure, and even the underwriting criteria themselves can flex around the client, not the other way round.
Private bank mortgages tend to suit:
- Business owners and entrepreneurs with complex or irregular income
- Individuals receiving bonus-heavy or carried-interest compensation
- International clients and non-UK residents purchasing in London
- Borrowers wanting to use investment portfolios as additional or alternative security
- High-value purchases above £1-2 million, where high street lending caps become restrictive
- Clients who already hold, or are willing to hold, assets under management with the bank
Private Bank vs High Street vs Specialist Lenders
There are meaningful differences between the three main routes to a mortgage in London, and the right one depends entirely on the complexity of the case. The table below gives a high-level comparison.
| Feature | Private Banks | High Street | Specialist Lenders |
|---|---|---|---|
| Speed | Variable, relationship-led | Fast for standard cases | Moderate |
| Flexibility | Very high | Low | High |
| Rates & Fees | Negotiable | Low | Mid-range |
| Assets Required | Common | None | None |
| Use Cases | Complex, high-value | Simple, standard | Non-standard |
In short: high street lenders win on speed and price for straightforward cases. Specialist lenders fill the gap for non-standard scenarios that don't quite fit a private bank's relationship model. Private banks win where complexity, scale, or an existing wealth relationship make a bespoke structure worthwhile.
Our Pick of the Best Private Banks Providing Mortgages
Not every private bank lends actively in the current market, and appetite shifts regularly depending on loan size, asset class, and geography. As a whole-of-market broker, we track which banks are actually writing business and on what terms. Our current shortlist of the most active private bank lenders includes:
| Top UK-based private banks | |
|---|---|
| Ahli United | Coutts & Co |
| Arbuthnot Banking Group | Deutsche Bank |
| Bank of Canada | EFG Private Bank |
| Bank of China | HSBC Private Bank |
| Barclays Private Bank | ING Direct |
| Brown Shipley | Investec Private Bank |
| Butterfield Private Bank | Kleinwort Benson |
| Credit Suisse | Lloyds Private Bank |
| C.Hoare & Co | Santander Private Bank |
| Cater Allen Private Bank | Standard Chartered |
| Citibank International | Weatherbys Bank |
A note of caution: appearing on this list doesn't mean every bank suits every client. Some, such as C.Hoare & Co, lend almost exclusively to existing private clients. Others actively court new relationships where a mortgage is the entry point. Knowing which is which — and being able to evidence the right case to the right bank — is most of the value a broker adds in this part of the market.
How Private Bank Mortgage Underwriting Actually Works
Private bank underwriting is built around relationship and net worth rather than a strict income multiple. That doesn't mean affordability is ignored — it's assessed, but with far more latitude in how it's evidenced and interpreted. A bank may, for example:
- Lend against a discounted value of an investment portfolio, rather than requiring it be liquidated
- Take a holistic view of variable income — bonuses, dividends, carried interest — averaged differently to a high street affordability calculator
- Offer interest-only structures more readily, particularly where there's a credible repayment strategy tied to assets
- Structure lending across multiple jurisdictions or currencies for international clients
- Require a minimum level of assets under management, sometimes as a condition of the mortgage itself
This is also where private bank lending differs most from specialist lending. A specialist lender prices for risk on a non-standard case; a private bank prices for the relationship. The same client might be offered very different terms by each, and the better outcome isn't always obvious without testing the market properly.
Rates, Fees, and What to Expect
Private bank rates are genuinely negotiable, which is both the appeal and the complication. There's no published rate sheet to compare, and headline pricing is rarely the full story once arrangement fees, asset management requirements, and cross-selling expectations are factored in.
As a general guide:
- Rates can be competitive with, or better than, high street pricing for clients bringing significant assets under management
- Arrangement fees are often higher than high street equivalents but can be negotiated, particularly for larger loans
- Some banks require a minimum AUM commitment as a condition of lending, which needs to be weighed against the value of the mortgage terms on offer
- Loan-to-value ratios are typically more conservative than high street maximums, though this is offset by flexibility elsewhere in the structure
The honest answer to "what will it cost me" is: it depends entirely on the bank, the relationship, and how the case is presented — which is precisely why this segment of the market rewards a broker who knows which doors to knock on.
When a Private Bank Mortgage Isn't the Right Fit
Private bank lending isn't automatically the best route simply because a client is high-net-worth. For a straightforward purchase with clean, provable income and no appetite to move banking relationships, a high street lender will often be faster, cheaper, and entirely sufficient. Equally, a client with complex but non-bankable circumstances — an unusual property, a short trading history, or a need for genuine speed — may be far better served by a specialist lender than by a private bank's relationship-driven timeline.
Part of arranging private bank mortgages properly is knowing when not to recommend one.
How Oakstead Finance Can Help
As a whole-of-market mortgage broker, Oakstead Finance has direct relationships across the private banking sector and a clear view of current lending appetite — which banks are active, which are pulling back, and which terms are genuinely competitive versus headline-only. We build the case, present it to the right bank, and negotiate the structure on your behalf, whether that means a single private bank mortgage or a blended solution across private, high street, and specialist lending.
If you're considering a private bank mortgage for a purchase, refinance, or restructure, get in touch to arrange a consultation.
Frequently Asked Questions
Do I need to bank with a private bank already to get a private bank mortgage? No, though it helps. Most private banks will consider a mortgage as the opening of a new relationship, not just a product for existing clients. Some, like C.Hoare & Co, are the exception and lend almost exclusively to existing private clients.
How much do I need in assets to qualify for a private bank mortgage? There's no single threshold — it varies by bank and by case. Some banks expect a meaningful level of assets under management as a condition of lending; others are more flexible if the income and security profile is strong. This is exactly the kind of detail a broker can clarify before you approach a bank directly.
Is a private bank mortgage cheaper than a high street mortgage? Not necessarily. Rates can be competitive, particularly for clients bringing significant assets to the relationship, but arrangement fees and AUM requirements often offset any headline saving. The right comparison depends on the full structure, not just the rate.
Can I get a private bank mortgage as a non-UK resident? Yes — international and non-resident clients are a core part of the private banking mortgage market, particularly for prime London property. Structuring across jurisdictions and currencies is something private banks are typically well set up to handle.
What's the minimum loan size for a private bank mortgage? Most private banks focus on loans from around £1-2 million upwards, though this varies by lender and by the wider relationship. Below this level, high street or specialist lending is usually more appropriate.
Can I use investment assets instead of income to secure a mortgage? Often, yes. Many private banks will lend against a discounted value of a portfolio rather than requiring income alone to support the loan, which is particularly useful for clients with significant wealth but modest salaried income.
Do private banks offer interest-only mortgages? Yes, more readily than most high street lenders, particularly where there's a credible and evidenced repayment strategy tied to assets, business sale proceeds, or other capital events.
How long does a private bank mortgage take to arrange? It varies considerably. Because terms are relationship-led rather than templated, timelines can be longer than a straightforward high street application, though a well-prepared case presented to the right bank can still move quickly.
What documents will a private bank ask for? Expect more than a standard mortgage application — typically a detailed statement of assets and liabilities, business accounts or tax returns for variable income, source of funds and source of wealth evidence, and details of any existing banking relationships.
Can a private bank mortgage be used for buy-to-let or commercial property? Some private banks will lend on investment or commercial property as part of a wider relationship, though this is less standardised than residential lending and is assessed case by case.
What happens if my income is irregular or made up of bonuses and dividends? This is one of the areas where private banks add the most value. Variable income is typically assessed holistically rather than through a fixed multiplier, which suits business owners, partners, and bonus-heavy earners.
Should I use a broker or approach a private bank directly? A broker with active private banking relationships will usually have a clearer view of current lending appetite than a client approaching cold, and can present the case to the bank most likely to say yes on the best terms — rather than the first one approached.
Is a private bank mortgage right for every high-net-worth borrower? No. For a straightforward purchase with clean, provable income and no interest in a new banking relationship, a high street lender is often faster and cheaper. Private bank lending earns its place where complexity, scale, or an existing relationship make it worthwhile.
