Private bank mortgages vs the high street: who qualifies, and is the deal actually better?

The short answer: a private bank mortgage is right for borrowers whose wealth does not fit a standard affordability model. That usually means large loans, income that moves year to year, or wealth held in investments rather than salary. It is not automatically the cheaper option. For a clean, straightforward borrower, the best high street deals are often hard to beat.

We arrange lending across both markets every week. Here is how we explain the difference to clients, question by question.

Who is a private bank mortgage actually right for?

A private bank suits people whose finances do not fit a box. Typical examples include:

• Loans of around £1m and above, where high street appetite starts to narrow.
• Income that is mostly bonus, RSUs or carried interest, rather than a fixed salary.
• Clients who are asset rich but income light, such as those living on investments.
• Earnings or assets spread across several countries and currencies.
• A need for interest only on a large loan, backed by a credible repayment plan.

The high street stops being an option when its affordability model cannot see the full picture. A private bank can lend on the whole balance sheet, not just the payslip.

What income, net worth or loan size do private banks look for?

As a rough guide, most private banks want loans from around £1m upwards. Many also expect either a high income or significant liquid assets, often £1m or more to invest or hold with them. Every bank sets its own bar, and it moves with their appetite.

Over the past year we have seen banks become more selective about who they take on. They are more focused on the full relationship than on the loan alone. The headline thresholds matter less than the overall story. A well presented case with clear wealth and a sensible plan will always get a better hearing.

Will I have to move my investments or cash to the bank?

In most cases there is some expectation of a wider relationship. It is rarely a hard rule written into the offer, but it shapes both the decision and the pricing.

Banks commonly ask for a share of the loan value to be placed with them in cash or managed investments. Often that is somewhere between 10% and 30%, and sometimes more for the sharpest pricing. Ask early, and in writing, exactly what is expected and for how long. Moving a portfolio has costs and tax consequences of its own, so it needs weighing up properly.

Are private bank rates and fees better than the high street?

Not always. For a clean borrower, the best high street fixed rates are often hard to beat. Private banks tend to win on flexibility and structure rather than on headline rate. Many lend on tracker or bespoke terms, and arrangement fees can be higher.

Relationship pricing can be a genuine saving, but only if you were going to move your money anyway. If you are moving investments purely to reduce the mortgage rate, compare the total cost. Include the management fees on the assets you transfer. Sometimes the saving disappears once everything is added up.

Which income do private banks accept that the high street will not?

This is where private banks earn their place. Compared with a mainstream lender, a private bank will often:

• Use bonus income in full rather than discounting it heavily.
• Take account of restricted stock, deferred awards and carried interest.
• Consider dividends and retained profits in a business.
• Look at trust distributions and investment income.
• Accept overseas earnings in other currencies, with a sensible allowance for exchange rate movement.

The high street tends to take a cautious slice of anything variable, or ignore it altogether. A private bank will usually sit down, understand how your wealth really works, and lend against it. You can read more on our complex income and high net worth mortgages pages.

Will a private bank always give a high earner a better deal?

No, and it is worth testing that assumption. A high earner on a simple salary may well get a better rate and lower fees from a mainstream lender. The private bank route makes sense when you need flexibility, scale, or an underwriter who understands complex wealth.

The sensible approach is to compare both markets side by side before committing. That is exactly what a whole of market adviser should do for you. Our Private Client service does this as standard, with access to private banks, investment banks and specialist lenders alongside the mainstream market.

How we help

We package the case so the lender sees strength, not complexity. That means a clear summary of income and assets, a credible repayment strategy, and an honest comparison of the private bank and high street routes. One experienced adviser handles your case from first call to completion. Speak to us for an initial conversation.

Frequently asked questions

This article is general information, not advice. Your home may be repossessed if you do not keep up repayments on your mortgage. The value of investments can fall as well as rise. Some forms of finance are not regulated by the Financial Conduct Authority.