For high-net-worth individuals or clients with complex income structures, a private bank mortgage can be a game-changer. These lenders think differently, underwrite more flexibly, and tailor solutions that go far beyond the offerings of high street banks.

But private banks aren’t right for everyone—and in some cases, they could actually cost more than necessary.

In this guide, we explain:

• What a private bank mortgage is
• How it differs from traditional lending
• When it’s the right option
• The pros, cons, and what you’ll need to qualify

🏦 What Is a Private Bank Mortgage?

A private bank mortgage is a loan provided by a private banking institution, often to high-net-worth clients, typically offering:

• Larger loan sizes
• Bespoke underwriting
• Flexible repayment structures
• Preferential rates if you bring assets under management (AUM)

Unlike mainstream lenders who use strict automated criteria, private banks take a relationship-driven approach.

That means:

• Your income is considered holistically (including overseas, variable, trust, or investment income)
• Loans can exceed standard loan-to-income (LTI) caps
• They’ll often lend where others won’t—based on asset base, not just income

✅ Benefits of Using a Private Bank Mortgage

1. Tailored Lending for Complex Client

If your income is:

• Self-employed or entrepreneurial
• International or multi-currency
• Bonus- or commission-heavy
• Held in trusts or company profits

…a private bank is far more likely to offer terms that match your profile. However, private bank mortgages are only suitable for certain high-net-worth or complex clients and are subject to strict lender criteria.

2. High Loan Sizes

Many of our private bank clients borrow:

• £2M+ for a primary residence
• £3M–£10M for UK investment property
• Even higher for international homes or portfolio restructuring

Private banks are comfortable with high leverage, especially when there’s significant wealth or assets under management.

3. Flexibility on Structure

Private banks offer:

• Interest-only or bullet repayment options
• Cross-collateralised borrowing (secured against multiple assets)
• Foreign currency lending
• Offshore or trust lending structures

These can unlock borrowing potential far beyond what a standard bank could achieve.

4. Speed and Personal Service

Most private banks assign a dedicated relationship manager. This speeds up underwriting and allows direct dialogue—no call centres or generic service desks.

With Willow’s positioning, we can often escalate cases quickly, especially when there's a hard deadline (e.g. auction purchase or high-value acquisition).

⚠️ Drawbacks of Private Bank Mortgages

1. Asset Under Management Requirements

Most private banks will require you to place assets with them—usually £250k to £1M+. This could be:

• Cash savings
• Investment portfolios
• Pension assets
• Shares or private equity

While this may benefit your long-term wealth management, it creates a non-mortgage cost that must be considered.

2. Higher Fees or Minimum Loan Sizes

Private banks often charge:

• 1–2% arrangement fees
• Higher legal/valuation costs
• Minimum loan sizes (e.g. £1M+)

So while they offer flexibility, they’re not always cost-effective for smaller loans or straightforward cases.

3. Not Right for Vanilla Cases

If you’re a salaried UK resident borrowing £400k on a standard residential purchase, you likely don’t need a private bank. A high street lender may offer:

• Lower fixed rates
• Faster legal process
• No AUM requirement

At Willow, we always benchmark your options to avoid overcomplicating what should be simple.

👤 Who Uses Private Bank Mortgages?

We regularly place private bank mortgages for clients who are:

• Entrepreneurs with multiple income streams
• UHNW individuals purchasing £2M+ homes
• Expats buying UK property without UK payslips
• International families funding education and property in the UK
• Property investors refinancing large portfolios
• Clients using complex legal structures (offshore trusts, SPVs, etc.)

🔒 Case Study: Private Bank Mortgage for Dubai-Based CEO

*Example only – actual rates/terms depend on individual circumstances and may change.

Client: British expat living in Dubai, CEO of a tech company earning $1M+

Need: £2.8M mortgage for a London family home

Challenge: No UK income or UK credit profile

Solution: Willow secured terms with a Swiss private bank offering:

• 65% LTV
• Interest-only, 5-year term
• Rate of 4.25% with AUM of £500k

Outcome: Deal completed in 5 weeks, saving the client from renting at £12k/month

🧠 Willow's Value in Private Bank Lending

• Access to dozens of top-tier private banks, including Swiss, UK, and international
• Experience in structuring deals for entrepreneurs, expats, and international clients
• Trusted relationships that allow us to negotiate fee reductions or streamline AUM terms
• Dual focus on mortgage strategy and wealth protection

We act as the broker and the translator—bridging the gap between you and elite banking options.

📋 Is a Private Bank Mortgage Right for You?

It might be, if:

• You’re borrowing £1M+
• You have non-standard income
• You want flexible lending terms
• You’re open to placing assets under management
• You’re buying quickly or dealing with a sensitive transaction

It might not be, if:

• You’re buying under £750k with simple income
• You’re looking for the absolute lowest fixed rate
• You don’t want any wealth relationship

That’s where we come in—to help you weigh all your options.

Final Thought

A private bank mortgage can unlock doors that traditional lenders close—especially for high-value or complex transactions. But they come with conditions, expectations, and a different way of doing business.

At Willow, we know that world. We’ll show you how to access it—and when a high street lender might actually be better.

📞 Ready to Explore Private Bank Lending?

We’ve arranged private bank mortgages from £1M to £25M+ for clients across the UK, Europe, and the Middle East.
Let us show you what’s possible.