London’s £10m-Plus Homes Draw £2.21bn of Spending as the Wider Prime Market Slows

Buyers spent £2.21bn on London homes costing more than £10m during the first nine months of 2026, according to Savills. The 89 transactions provide a striking counterpoint to the weakness elsewhere in the capital’s prime residential market.

The research, published on 21 October and followed by reporting in The Times on 25 October, shows £10m-plus purchases accounting for their largest share of higher-value spending in seven years.

Across the wider £5m-plus market, third-quarter sales volumes fell 12% year on year, while the total value transacted declined by 3%. Savills identifies Belgravia, Knightsbridge and Kensington as the leading locations for £10m-plus transactions and describes continuing demand from internationally mobile wealthy buyers.

These figures describe a market with different forces operating at different price levels. They do not demonstrate a general recovery, nor establish that international buyer numbers are rising.

They also say nothing about how those purchases were funded. A completed transaction may involve cash, borrowing or a combination. The case for finance has to be assessed separately from the decision to buy.

Lower Prices Can Attract Buyers Without Signalling a Recovery

Savills places prime values more than a quarter below their 2014 peak. That comparison helps explain the interest in relative value, but it does not make every property a bargain or predict where prices go next.

A market index cannot establish the appropriate price for a particular house. Condition, location, layout, tenure and the quality of competing properties all affect the individual purchase.

Likewise, spending can become more concentrated at the top because activity elsewhere weakens. A larger share of expenditure is not, by itself, evidence of a broad increase in demand.

For a family buying a home to use over many years, the decision may depend on schooling, business connections and access to London. Those considerations can remain important even when the short-term investment outlook is uncertain.

That distinction also appeared in Willow’s recent reporting on UBP’s continuing interest in UK-connected international wealth. Where a family lives, where it owns property and where it manages its money need not be the same place.

A £7m Purchase Can Be Affordable Without Being Simple to Fund

Consider a hypothetical entrepreneur living overseas who wants to purchase a £7m London home. They own operating businesses, hold investments with an international wealth manager and receive income in more than one currency.

They may be able to pay cash, but doing so could require selling investments or extracting money from a business. Alternatively, they may already have sufficient personal cash and prefer the certainty of purchasing without debt.

A mortgage introduces another choice. It can reduce the cash committed to the purchase, but it also creates an obligation that must remain manageable if income, investment values or exchange rates change.

Before comparing lenders, the buyer needs a clear picture of the money available personally, the assets owned by other entities and the income that can support borrowing. Business value and accessible personal cash are different things.

Borrowing £3.5m preserves that amount of cash at completion, before costs, while creating a matching liability. It does not increase the buyer’s net wealth.

At the illustrative rate, the interest would be approximately £16,042 a month. The capital would still need to be repaid through a strategy acceptable to the lender.

A one-percentage-point increase in the rate on an unchanged £3.5m balance would add £35,000 to annual interest. That sensitivity matters even where the borrower has substantial assets.

Retaining Investments Is a Choice With Costs and Risks

There can be sound reasons to avoid selling assets immediately. A buyer may have future business commitments, prefer to retain a diversified portfolio or need time to coordinate a disposal with professional advice.

But the expected return on retained investments should not be treated as guaranteed to exceed the mortgage cost. Returns can fall, distributions can stop and assets may be difficult to sell when repayment is due.

The comparison should include interest, arrangement charges, early repayment terms and any wider banking costs. Where a private bank requires investments to be transferred or managed, those conditions belong in the assessment too.

The buyer’s investment and tax advisers should evaluate the consequences of retaining or disposing of assets. Mortgage advice establishes the borrowing options and obligations; it does not determine the best investment strategy.

A Private Bank Is One Possible Route

A high purchase price does not automatically require a private-bank mortgage. The appropriate route depends on the loan amount, accepted income, residence, property and the client’s preferences.

HSBC, for example, publishes an international mortgage service for eligible overseas residents and certain recent arrivals. Its criteria include country restrictions, income requirements and lending limits. That demonstrates the existence of an international route, not approval for the hypothetical purchase discussed here.

A specialist lender or private bank may assess a different combination of income and assets. Some arrangements may involve a wider banking relationship, while others may focus primarily on the property and repayment capacity.

The meaningful comparison is between actual terms. A competitive headline rate can be less attractive once asset-transfer requirements, fees, repayment flexibility or additional security are considered.

An existing overseas banking relationship may be useful, but it should not be assumed to provide UK property finance automatically. The bank must be willing and able to lend for the proposed transaction.

Residence, Currency and Income Need Separate Examination

Nationality and residence are distinct facts. A British citizen living abroad may need an overseas-borrower route, while a foreign national established in Britain may have different options.

Lenders also distinguish between the currency in which income is received, the jurisdiction from which it originates and the country where the applicant lives. These details can affect eligibility and the amount of income accepted.

HSBC’s published intermediary criteria, for example, describe reductions applied to foreign-currency income in affordability calculations. Other lenders’ approaches must be checked individually.

For the borrower, exchange-rate exposure continues after completion. If one unit of the income currency buys 10% fewer pounds, the same sterling mortgage payment requires approximately 11.1% more of that currency.

A buyer should therefore consider both the conversion needed for completion and the future currency of mortgage payments. A favourable exchange rate on the purchase date does not guarantee affordable servicing throughout the loan.

The Property and Ownership Structure Still Matter

The intended use of the home should be clear from the outset. A family residence, an occasionally occupied London base and a property intended for letting may require different financing arrangements.

Ownership also affects the available routes. A personal purchase cannot simply be treated as interchangeable with a company or trust acquisition. Tax and legal advisers should establish the implications before the buyer commits to a structure.

Substantial wealth does not remove the lender’s need to value the security. A negotiated price below a historic asking figure is not proof that the lender will accept the purchase price as its valuation.

For illustration, a £3.5m loan is 50% of a £7m purchase price. If the lender’s valuation were £6.5m, that same borrowing would represent approximately 53.8% of the valuation. Any loan limit would need to be assessed on the lender’s actual basis.

Lease terms, condition and planned works can also influence the application. If substantial renovation is intended, establish whether the proposed residential mortgage permits it and whether a different facility is needed.

Paying Cash First Does Not Guarantee Borrowing Later

A buyer may consider completing with cash and arranging a mortgage afterwards. That can be workable, but it should not be assumed to reproduce the terms available before purchase.

The later lender will assess the application at that time, including the property value, ownership, borrowing purpose and the applicant’s circumstances. Product availability and rates may also have changed.

If releasing capital after completion is essential, the plan should be tested before committing the cash. Otherwise the buyer could complete successfully but retain less liquidity than intended for other obligations.

The same principle applies where a temporary facility is considered. Its repayment needs a credible route, including sufficient time for underwriting and legal work. Expected refinancing is not the same as a committed offer.

International Transactions Benefit From Early Coordination

The financing file should explain who owns the assets, how income is generated, what liabilities already exist and where the purchase contribution will come from.

Where money moves through several companies or accounts, a clear documentary trail is more useful than a large headline net-worth figure. The lender and solicitor may each need evidence for their own checks.

That was also a central theme in Willow’s recent article on complex ownership arrangements and wealthy individuals’ financial records. Accurate information helps advisers understand the transaction without treating assets held by different people or entities as one freely available pool.

For buying agents, the practical benefit is a clearer view of the purchaser’s funding position before negotiations become time-sensitive. For the buyer, it reduces the risk of agreeing a timetable that the banking or legal process cannot support.

Continuing Demand Calls for a Balanced View

The latest figures sit alongside, rather than cancel, the pressures affecting prime London property. A city can retain wealthy international buyers while other owners reconsider their holdings and some homes take longer to sell.

Willow’s recent coverage of owners considering a move in response to additional property costs examined a different side of that market. Buyers and sellers can respond differently to the same conditions.

For an international purchaser, the financing decision should start with their own circumstances: how long they expect to hold the property, what cash they need elsewhere and how comfortably they can service and repay any debt.

Some will choose to pay cash. Others may benefit from a suitable mortgage. The value of advice lies in comparing those choices accurately, including the obligations that continue long after the purchase has completed.