Private Bank vs High Street Lenders: Which Is Better for You?

David Walsh

DIRECTOR AND MORTGAGE ADVISER

Specialist broker for high-earning professionals and complex income cases.

If you're a high-earning professional, partner, or entrepreneur, the question isn’t just “Can I get a mortgage?”—it's “Who should I get it from?”

For many, the choice comes down to private banks vs high street lenders. While both can offer competitive mortgage products, their approach to underwriting, income assessment, and flexibility varies significantly.

Here’s how to decide which option is right for your situation.

Request your fee free mortgage consultation today. No obligation, just sound advice.

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What’s the Difference Between a Private Bank and a High Street Lender?

High Street Lenders
Include well-known retail banks like HSBC, Barclays, Nationwide, and Santander. These lenders:

• Offer fixed, tracker, and interest-only mortgages at competitive rates

• Use standardised criteria based on payslips, P60s, and credit scores

• Often limit borrowing to 4.5–5x income

• May struggle with complex or variable income structures

Private Banks
Include lenders like Coutts, Handelsbanken, Investec, or C. Hoare & Co. These banks:

• Take a holistic view of your income, assets, and long-term potential

• Offer tailored lending based on total wealth, not just salary

• Are ideal for high-value mortgages or complex income profiles

Typically require assets under management (AUM) or a wealth relationship

When a High Street Lender Is the Right Fit

You may be better suited to a mainstream lender if:

• You have a straightforward income structure (e.g. PAYE or two years’ self-employed history)

• Your mortgage is under £1 million

• You’re looking for the lowest headline rate with minimal strings attached

• You want a fast, digital application process and don’t require bespoke structuring

High street lenders are efficient, well-priced, and often more appropriate for simpler borrowing needs.

How We’ve Helped Clients Like You

These clients faced similar challenges - here’s how we helped them secure the right deal.

When a Private Bank Makes Sense

A private bank may be the better route if you:

• Have a complex income structure (e.g. RSUs, carried interest, drawdowns, multiple income sources)

• Need to borrow £1m+ or exceed standard income multiples

• Are a non-UK resident, foreign national, or have overseas assets

• Want to include assets or investment income in affordability

• Require a bespoke mortgage structure (e.g. interest-only with an offset, bullet repayment, or tailored repayment schedules)

Private banks are particularly valuable for professionals in law, finance, tech, or business who earn well but don’t fit into a standard box.

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Get in touch for a fee free, no-obligation chat about how we might be able to help you.

Rates, Fees, and Flexibility: What to Expect

• Rates: Private banks can be competitive, but not always cheaper. They often match or beat high street rates for large loans—especially when AUM is involved.

• Fees: Expect higher arrangement or management fees. Some banks reduce or waive these with a wider wealth relationship.

• Flexibility: This is where private banks shine—allowing bespoke repayment structures, flexible underwriting, and asset-backed lending unavailable elsewhere.

• Speed: Private bank processes can be slower and more relationship-driven. But they excel when standard routes fail due to income complexity.

How to Choose the Right Lender for You

Start by assessing your profile:

• Loan size: Under £1m? High street may be more cost-effective.

• Income type: PAYE or simple self-employed? High street. Complex income or assets? Consider private banks.

• Timeframe: Need speed? High street lenders often win.

• Flexibility needs: Want interest-only beyond age 65, or offset from retained profits? A private bank can deliver.

• Relationship value: Are you open to placing savings or investments with the lender? That could unlock better terms.

And most importantly—work with a broker. Many private bank deals are not advertised, and access is only available through intermediaries.

What Our Clients Say

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FAQs

• Are private banks always more expensive?

  Not necessarily. On large loans, their rates can be extremely competitive—especially with assets under management.

• Do I need millions to use a private bank?

  No. Many private banks support mortgages from £750k–£1m+ with flexible criteria. Wealth requirements vary.

• Can I switch from a high street mortgage to a private bank later?

  Yes. Many clients remortgage to a private bank once their assets or income become more complex.

• Is it harder to get approved by a private bank?

  Not harder—but more bespoke. You’ll need full transparency on your income, assets, and goals.

Conclusion: It’s Not Just About the Rate

Choosing between a high street lender and a private bank comes down to more than numbers. It’s about who understands your full financial picture—and can offer a mortgage that fits not just your income, but your future.

Need help deciding which route suits your situation?
We specialise in helping professionals and partners access tailored mortgage options—whether from a high street bank or a private lender.

Request your fee free mortgage consultation today. No obligation, just sound advice.

Complete Enquiry Form

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