P R I V A T E B A N K M O R T GA G E S
Private bank mortgages: when bespoke underwriting is worth the premium — and when it isn't
Private banks offer flexibility that mainstream lenders can't match. But that flexibility comes at a cost — higher rates, larger fees, and sometimes an expectation that you'll bring your investments along. The question isn't whether private banks are good. It's whether they're good for your situation.
Y O U R T E A MYou'll speak with a broker who places mortgages with both private banks and high street large-loan teams every week — and knows when each is the right answer
David Walsh
Director & Mortgage Broker
Founder of Kite Mortgages. Specialist in complex income structures for City professionals. Advises on mortgage strategy for high earners with partnership income, bonus-heavy pay, equity compensation, and foreign currency earnings.
View profile →
Simon Hart
Mortgage & Protection Adviser
Mortgage adviser at Kite Mortgages. Specialises in high-value purchases and remortgages for City professionals. Works with clients navigating complex income structures including variable pay, carried interest, and multi-currency earnings.
View profile →O V E R V I E WWhat a Private Bank Mortgage Actually Is
A private bank mortgage is a loan underwritten on a bespoke basis — meaning a human underwriter looks at your full financial picture and makes a judgement, rather than feeding your numbers into an affordability calculator and seeing what comes out.
That sounds appealing. And it is, when you need it. But most high earners don't.
The majority of our clients — including equity partners earning £500k+, investment bankers with six-figure bonuses, and tech leaders with significant RSU packages — complete on high street terms. High street large-loan teams have become increasingly sophisticated. They have specialist underwriters who handle complex income daily, offer enhanced income multiples for defined professions, accept bonus and commission income on an averaged basis, and have clear frameworks for foreign currency. They're not the same team processing first-time buyer applications for £200k flats.
Private banks earn their premium when the high street genuinely can't do what you need. The rest of this guide explains when that is, what private bank underwriting actually looks like, and how to work out whether the extra cost is worth it for your situation.
W H E N I T ’ S W O R T H I T
When a Private Bank Is the Right Route
There are five situations where private bank underwriting genuinely justifies the premium. If your situation doesn't fit any of these, a high street large-loan team will almost certainly give you a better deal.
Very High LTV at Large Loan Sizes
High street lenders cap out on LTV at large loan sizes. Most will lend to 85% on a £1m+ property, a few will stretch to 90% for strong professional profiles, and above that the options thin out fast. Private banks can go higher — in some cases to 95% at seven-figure loan sizes — because they're underwriting you as a relationship, not applying a policy grid.
If you need 90%+ LTV on a loan above £1m, private banking may be the only viable route.
Income That Doesn't Fit Published Criteria
High street lenders work within published policy. That policy is more flexible than most people think — but it still has boundaries. If your income is heavily weighted toward carried interest, if you earn in three currencies across two jurisdictions, if your wealth sits in trusts and investment vehicles rather than payslips, or if your declared income is modest relative to your actual financial capacity, the high street may not be able to capture enough of it to get you where you need to be.
Private banks assess holistically. They look at income, assets, liabilities, investment behaviour, and future capacity. They can consider income streams that mainstream lenders exclude entirely — and weight them based on your overall profile rather than a formula.
Full Interest-Only on a Large Balance
High street lenders offer interest-only, but most cap the interest-only element at a proportion of the total loan or a maximum LTV. If you need your entire mortgage on interest-only — with a credible plan to reduce the capital through annual distributions, bonus overpayments, or planned asset sales — a private bank can structure that in a way mainstream products can't.
Interest-only mortgages for high earners →
Asset-Based Lending
If your declared income is low relative to your wealth — perhaps you're an entrepreneur between ventures, a retiree with significant investments, or an individual whose wealth sits in property and portfolios rather than salary — private banks can underwrite against your assets rather than your income. They'll look at your liquid investments, the expected yield, and your capacity to service the mortgage from those assets.
Some private banks combine this with a Lombard facility — a portfolio-backed line of credit that sits alongside your mortgage and gives you access to liquidity without liquidating investments.
Revolving Credit Facilities and Bespoke Structuring
A standard mortgage is a fixed facility — you borrow a set amount and either repay it or maintain it. Private banks can offer revolving credit structures where you draw down and repay flexibly, similar to a large overdraft secured against property. These suit borrowers who want to make large overpayments when liquidity events occur and then redraw if needed — without the cost and friction of remortgaging each time.
Other bespoke structures include bullet repayments (where the full balance is repaid at a fixed future date), multi-currency loans for borrowers who want to match their mortgage currency to their income currency, and staged capital reductions linked to known future events.
T H E R E A L C O S T
What Private Bank Mortgages Actually Cost
The flexibility of private banking comes at a price, and it's important to quantify that price before deciding it's worth paying.
Rate Premium
Private bank mortgage rates are typically 0.3% to 0.8% higher than the equivalent high street product. On a £1.5m mortgage, a 0.5% rate premium costs £7,500 a year in additional interest. Over a five-year product, that's £37,500 — a meaningful sum even for high earners.
Some private banks will sharpen their rates if you bring assets under management or commit to a wider banking relationship. But the headline rate you're quoted before those negotiations is almost always above what you'd pay on the high street.
Arrangement Fees
High street arrangement fees on large loans are typically £999 to £1,999. Private bank arrangement fees can be significantly higher — often 0.25% to 0.5% of the loan amount. On a £2m mortgage, that's £5,000 to £10,000 in fees alone, before the rate premium.
Some private banks will reduce or waive arrangement fees when a wider wealth relationship is in place. Others build the fee into the rate. Either way, the total cost of borrowing — rate plus fees over the product term — is the number that matters.
AUM Requirements
AUM stands for Assets Under Management. Some private banks require you to place a portion of your investable wealth with them — typically £250k to £500k or more — as a condition of lending, or to access their best terms.
This isn't necessarily a cost if you'd invest that money anyway and the bank's investment proposition suits you. But if you're moving assets from a portfolio that's outperforming, or paying management fees you wouldn't otherwise pay, that's a real cost that should be factored into the comparison.
Not all private banks require AUM. Some offer "dry lending" — bespoke mortgage terms without a wider wealth relationship. We know which banks offer what, and we'll be clear about what's required before you commit to a direction.
H O W I T W O R K S
How Private Bank Underwriting Actually Works
Understanding the mechanics helps you prepare a stronger application and set realistic expectations about timelines and outcomes.
Relationship-Led, Not Formula-Led
High street mortgage applications go through an affordability model — a standardised calculation that takes your income, deducts your committed expenditure, stress-tests at a higher rate, and produces a maximum loan figure. The underwriter can exercise some judgement within the boundaries of published policy, but the model drives the decision.
Private bank underwriting works differently. Your application goes to an individual underwriter — or in some cases a credit committee — who reviews your complete financial picture. They'll look at income from all sources, liquid and illiquid assets, existing liabilities and commitments, investment behaviour and portfolio composition, future earning capacity and career trajectory, and the property itself in the context of your wider wealth.
The outcome isn't a number generated by a calculator. It's a judgement made by a person who's seen hundreds of similar profiles and can assess whether your overall position supports the borrowing you're requesting.
What Private Banks Look At
Income is part of the picture, but it's not the whole picture. Private banks assess your financial position across several dimensions.
Income capacity covers salary, bonus, partnership profits, carried interest, RSUs, dividends, rental income, and foreign currency earnings. They'll look at sustainability and trajectory, not just the current-year headline.
Assets and liquidity covers cash, investments, property equity, pension funds, and any other realisable wealth. Some banks will use your portfolio value to supplement income for affordability purposes.
Liabilities covers existing mortgages, credit commitments, tax obligations (including tax on account for self-assessed income), and any co-investment or fund commitment obligations.
Exit strategy covers how you intend to repay the capital — whether through planned asset sales, portfolio redemptions, bonus accumulation, or property downsizing. This is particularly important for interest-only structures.
Private bank vs high street lenders — which is better for you? →
Timelines
Private bank applications don't necessarily take longer than high street ones. In some cases they're faster — particularly where the relationship is already established and the underwriter has a direct line to decision-makers.
Where they can take longer is when the case needs credit committee approval. Credit committees at private banks typically meet weekly or fortnightly, and complex cases may need more than one review. If your application involves unusual income structures, multiple securities, or a bespoke repayment plan, allow extra time.
The single biggest factor in keeping things on track — with private banks and high street alike — is having all documentation ready from the outset. We'll tell you exactly what's needed before you start.
G E T T I N G S T A R T E D
The Private Bank Onboarding Process
Private banks take a more thorough approach to onboarding than high street lenders. This is partly regulatory (enhanced due diligence for high-value lending) and partly commercial (they're assessing you as a potential long-term relationship, not just a mortgage applicant).
What You'll Need
The documentation for a private bank application is broadly similar to a high street one, with a few additions.
Standard income evidence: payslips, P60s, tax calculations (SA302s), partnership accounts, bonus award letters, and bank statements showing income credits. The specifics depend on your income type — we'll provide an exact list after our first conversation.
Source of wealth and source of funds: private banks need to understand where your deposit and overall wealth originated. This is more detailed than high street AML checks. You'll need to provide a narrative — how you built your wealth — supported by bank statements, investment records, or business ownership documentation. For straightforward professional income this is simple. For inherited wealth, business sales, or international transfers, allow time to compile the trail.
If AUM is involved: the bank may want to see your existing investment portfolio, understand your risk appetite, and discuss how your assets would be managed. This is usually handled by their investment team in parallel with the mortgage application.
Property-specific documentation: at higher values, private banks may require a more detailed valuation — sometimes instructing their own surveyor rather than relying on a panel valuer. If the property is held through a company or trust, expect additional legal work and longer timelines.
KYC and Enhanced Due Diligence
Know Your Customer (KYC) checks at private banks are more rigorous than high street. Expect detailed identity verification, proof of address, source of funds documentation, and — for international clients or those with complex business structures — potentially requests for professional references or additional corporate documentation.
This isn't a hurdle — it's standard for this level of lending. But it does mean you should start gathering documentation early rather than waiting until a property is found.
O U R A P P R O A C H
Our Philosophy: High Street First, Private Bank When It Matters
Our default is mainstream if it fits. The rates and fees are lower, and high street large-loan teams are now very capable with complex income. We've seen too many borrowers pushed toward private banks by brokers who don't know that mainstream lenders can often do the same job at a fraction of the cost.
That said, when the high street genuinely can't accommodate your profile — because of income structure, LTV requirements, asset-based affordability, or the type of product flexibility you need — private banks are the right answer. The point is that it should be an informed decision based on a real comparison, not a default.
We run both options where relevant. We'll model the numbers side by side — total cost of borrowing over the product term, including rate, fees, and any AUM implications — and present them clearly so you can choose based on what actually matters to your situation.
We maintain relationships with multiple private banks and specialist lenders. Access to private banking is typically through intermediaries — most private banks don't advertise mortgage products publicly — so working with a broker who has established relationships is important. We can introduce you to the right bank, structure your income presentation to match their underwriting approach, and negotiate on terms including whether AUM is required.
Large mortgages in the UK — routes via high street and private banks →
W H O T H I S A P P L I E S T OWhich Professionals Use Private Banks?
Private Bank arrangements are relevant across all six of the professions we work with, though the use cases and cash patterns differ. Start with the guide below that matches your role.
Lawyers & Law Firm Partners
Partnership income, profit share, and equity structures make private banking a common consideration for senior lawyers — but many complete on high street terms with enhanced professional multiples.
View guide →
Investment Banking Professionals
Large discretionary bonuses, deferred compensation, and USD-denominated pay. Private banks can capture more variable income, but high street large-loan teams often match it at lower cost.
View guide →
Private Equity Professionals
Carried interest, co-investment commitments, and fund-linked income. Private banks are more likely to be needed here than in most other professions — but not always.
View guide →
Hedge Fund Professionals
Performance fees, fund allocations, and multi-currency income. The same considerations apply as PE — bespoke underwriting may be needed, but test the high street first.
View guide →
Trading & Investment Professionals
Heavily bonus-led income, deferred stock, and sign-on packages. Private banks add value when the bonus structure is too complex for mainstream affordability models.
View guide →
Tech & Product Leaders
RSUs, stock options, and equity compensation. Most tech leaders complete on high street terms — private banking comes into play for very large equity packages or asset-based structures.
View guide →
R E L A T E D G U I D E S
Explore related guides
Large Mortgage Loans
The two routes to borrowing £1m+ — when high street large-loan teams beat private banks, and when they don’t
Bonus Income Mortgage Guide
How lenders treat annual and quarterly bonuses for mortgage affordability — including which accept 100% of the latest year
Equity Compensation Mortgage Guide
How UK mortgage lenders assess RSUs, stock options, deferred stock, carried interest, and other equity compensation
Interest-Only Mortgages for Professionals
When interest-only makes sense for high earners, how part & part works, and what repayment strategies lenders accept
Offset Mortgages for Professionals
How offset structures work, who offers them, and why they suit professionals with tax reserves or irregular cash flow
A R T I C L E SArticles on private bank mortgages
C A S E S T U D I E SHow we've helped clients with private bank mortgages
F A Q sFrequently Asked Questions
-
Not necessarily. While private banks typically focus on loans above £750k to £1m, there's no fixed wealth threshold. Some will lend from £500k if your profile is suitable. What matters more than a single number is the overall picture — income complexity, existing assets, and the type of flexibility you need. That said, if your borrowing is under £1m and your income fits high street criteria, a mainstream lender will almost certainly give you a better deal.
-
In most cases, yes — but not always dramatically so, and sometimes the total cost comparison is closer than the headline rate suggests. Private bank rates are typically 0.3% to 0.8% above high street equivalents, and arrangement fees are higher. Some banks sharpen pricing when you bring assets under management. The question is whether the flexibility you're getting — bespoke income assessment, full interest-only, asset-based lending — is worth the premium. On a £1.5m mortgage, a 0.5% rate difference costs £7,500 a year. Unless the flexibility genuinely justifies that, you're better off on the high street.
-
AUM stands for Assets Under Management — a portion of your investable wealth placed with the bank, typically managed by their investment team. Some private banks require AUM as a condition of lending; others offer it as an option that unlocks better terms; and some offer "dry lending" with no AUM requirement at all. Where AUM is involved, amounts typically start at £250k to £500k. We'll be clear about what each bank requires before you commit to a direction, and we'll factor any AUM costs into the total borrowing comparison.
-
Often, yes — because they assess affordability differently. A private bank can consider income that mainstream lenders exclude (carried interest, trust distributions, asset yields), weight your overall wealth in the affordability assessment, and offer higher LTV at large loan sizes. The effective income multiple can be higher where assets and income stability support it. But "can lend more" doesn't always mean "should borrow more" — we'll model what's comfortable as well as what's possible.
-
From full application to formal offer, most private bank applications take 3 to 6 weeks — similar to high street timescales. Where cases need credit committee approval, allow an additional 1 to 2 weeks. The single biggest factor in keeping things on track is having all documentation ready from the outset — particularly source of wealth evidence, which private banks review more thoroughly than high street lenders. We'll provide an exact document list after our first conversation.
-
Yes. Many private banks can offer loans denominated in USD, EUR, CHF, or other major currencies — matching your mortgage to your income currency and reducing exchange rate risk. This is one area where private banks have a clear advantage over the high street, which typically only lends in GBP and applies a haircut to foreign currency income for affordability purposes.
-
Yes. Many clients start on the high street when their income is relatively straightforward, and move to a private bank when their financial picture becomes more complex — after making partner, after a significant liquidity event, or when they need structuring that mainstream products can't offer. We monitor our clients' mortgages on an ongoing basis and will recommend a switch when the numbers make sense.
-
You don't strictly need one — some private banks accept direct applications. But most private bank mortgage products aren't publicly advertised, and access is typically through intermediary relationships. A broker who works regularly with private banks can introduce you to the right lender for your profile, structure your income presentation to match their underwriting approach, negotiate on rates and AUM requirements, and run a high street comparison alongside so you're making an informed decision rather than a default one.
W H Y U S E A B R O K E RHow Kite Mortgages Works With Private Banks
We place mortgages with private banks and high street large-loan teams every week. The value we add is in knowing when each is the right answer — and making sure you're not paying a private bank premium for flexibility you could get on the high street. We run both options where relevant, present the total cost side by side, and let you choose based on what matters to your situation. You'll speak with a broker who understands how private bank underwriting works, has direct relationships with private banking teams, and can structure your application to maximise the chance of approval on the terms you need.