Financing luxury property in the UK is unlike a typical mortgage. Whether it’s a £2m London penthouse, a countryside estate, or a trophy investment, lenders take a very different view when working with high-net-worth (HNW) individuals.

In 2025, the landscape has evolved again—rising interest rates, greater global mobility, and a more competitive private banking sector have all changed the conversation. Here’s what you need to know if you're purchasing a luxury home or investment property in the UK this year.

What Counts as Luxury Property?

While “luxury” is subjective, in lending terms it typically means:

• Purchase prices above £1.5 million
• Loan sizes above £1 million
• Unique property types or locations
• Clients with complex income or asset structures

It’s not just about the number—it’s about complexity, profile, and bespoke requirements.

Standard Mortgages Often Don’t Work

Most high-street lenders are ill-equipped for:

• Non-salaried income (dividends, bonuses, carried interest)
• Assets held in trusts, LLPs, or offshore entities
• Non-UK residency or citizenship
• Irregular income patterns

That’s where private banks, specialist lenders, and bespoke finance brokers like Willow come in.

Finance Options for Luxury Property in 2025

Here are the main solutions for HNW buyers:

1. Private Bank Mortgages

• Tailored underwriting
• Asset-backed or AUM-based lending
• Flexible repayment terms
• Often relationship-driven, with additional wealth services

2. High-Value Mortgages with Specialist Lenders

• LTVs up to 85%
• More tolerance for complex income
• Often interest-only options

3. Bridging or Development Loans

• For purchases requiring speed or property upgrades
• Common in off-market or refurbishment acquisitions

4. International Buyer Mortgages

• For non-residents investing in UK property
• Solutions exist even without UK credit history

5. Interest-Only & Offset Mortgages

• Used to manage cash flow and preserve capital flexibility
• Often ideal for those with significant investment portfolios

Income? It’s Not the Only Metric

High-net-worth buyers are often judged differently.

Instead of just income, lenders may assess:

• Net asset position
• Portfolio holdings
• Business or investment income history
• Track record of large property transactions

This opens doors for entrepreneurs, investors, and globally mobile professionals who may not fit a ‘vanilla’ profile.

What Are the Typical Terms?

• Loan Size: £1m–£25m+
• LTV: 50–85% (depending on structure and assets)
• Rates: Private banks can offer from 2.5–4.5% (variable), though market conditions vary
• Fees: Often bespoke—expect arrangement fees, AUM conditions, or relationship requirements

Key Considerations for 2025

• Global Tax Planning: Luxury property buyers often require advice on tax exposure, especially if buying via SPVs or offshore.

• Currency Hedging: For non-GBP earners, exchange rate movements can impact repayments.

• Asset-Based Lending: Some lenders will consider loans backed by shares, investment portfolios, or international property holdings.

• Speed to Complete: Off-market deals often move fast. Having pre-agreed facilities or a relationship lender helps.

How Willow Works With HNW Clients

At Willow Private Finance, we:

• Advise on structure (personal, company, trust)
• Source lending from private banks, family offices, and high-value lenders
• Handle everything discreetly and with urgency
• Align financing with your wealth and tax strategy

Whether you're buying your dream home or investing in a prestige asset, we ensure your finance solution works for the bigger picture.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.