Private Mortgage Lenders in the UK
Two things people mean by “private mortgage” — which applies to you?
- A mortgage from a private lender (non-high-street bank): A loan from a specialist, private bank, or non-mainstream lender — used when high-street banks decline or cannot accommodate complex income, adverse credit, or non-standard property.
- A private mortgage between family members: A direct loan arrangement where a family member lends money to a relative to buy a property, without a bank or building society involved.
What Is a Private Mortgage?
A private mortgage is a home loan that comes from a lender outside the mainstream high-street banking system. The term is used in two distinct ways in the UK:
Private mortgage lender
A specialist lender, private bank, or non-bank financial institution that offers mortgage products to borrowers who fall outside standard high-street lending criteria. These are regulated businesses, not individuals.
Private mortgage between individuals
A direct lending arrangement, typically between family members, where one person lends money to another to purchase a property without a bank acting as the intermediary. Also called an “interpersonal mortgage” or “family mortgage.”
Most searches for “private mortgage lenders” in the UK are looking for the first definition — specialist or private banking lenders as an alternative to high-street banks. If you have been turned down by a mainstream lender, are self-employed with complex income, or need a larger loan than standard income multiples allow, private mortgage lenders are worth exploring.
Contents
- Who are private mortgage lenders in the UK?
- Private mortgage vs bank mortgage — what’s the difference?
- Top private mortgage lenders in the UK
- Private mortgage rates 2025
- Who qualifies for a private mortgage?
- Family private mortgage — lending money to a family member
- How to apply for a private mortgage in the UK
- FAQs
Who Are Private Mortgage Lenders in the UK?
Private mortgage lenders in the UK fall into three broad categories. Understanding which type applies to your situation determines which route you should take.
1. Specialist Mortgage Lenders
These are regulated UK lenders that operate outside the high-street model. They focus specifically on borrowers the mainstream cannot serve — those with adverse credit, complex income, non-standard properties, or unusual circumstances. Examples include lenders in the Precise Mortgages, Kensington Mortgages, Together, and Pepper Money space. They are FCA-regulated, their products are available through brokers, and they are the most commonly used “private” option for UK borrowers.
2. Private Banks
Private banks — Coutts, Weatherbys, Arbuthnot Latham, C. Hoare & Co — offer mortgage lending as part of a broader wealth management relationship. Their mortgage products are tailored for high-net-worth individuals with complex assets, significant investment portfolios, or unusual income structures. Minimum asset requirements typically apply. Relationships are managed individually rather than through product-led processes, and rates are negotiated rather than published.
3. Bridging and Short-Term Lenders
Lenders such as LendInvest, Octane Capital, and West One offer short-term bridging finance and development finance, sometimes used as a temporary private mortgage solution — for example, to purchase at auction, fund a purchase before a sale completes, or finance a property that cannot be mortgaged in its current condition. These are not long-term mortgage products — they carry higher rates and are designed to be repaid or refinanced within 12–24 months.
Private Mortgage vs Bank Mortgage — What’s the Difference?
| Feature | Private / Specialist Lender | High-Street Bank |
| Lending criteria | Flexible — assesses income holistically, considers adverse credit, complex structures | Strict — standard income multiples, clean credit required |
| Interest rates | Higher — reflects increased risk or complexity | Lower — for borrowers who fit standard criteria |
| Loan amounts | £50k to £25M+ depending on lender type | Capped by income multiple and LTV rules |
| LTV available | Up to 85–95% with some specialist lenders | Typically up to 90–95% (5% deposit products) |
| Approval speed | Often faster — direct underwriting, fewer automated decision trees | Standardised but can be slower for complex cases |
| Broker access | Most specialist lenders are broker-only — not available direct to public | Available direct and via brokers |
| Best for | Self-employed, adverse credit, non-standard income, large loans, non-standard properties | Employed borrowers with clean credit and standard income |
| FCA regulated? | Yes for most residential lending; commercial products vary | Yes |
Top Private Mortgage Lenders in the UK
The following are among the most commonly used private and specialist mortgage lenders in the UK market. They are all accessible through brokers and cover a range of borrower profiles. This is not an exhaustive list, and the most appropriate lender for your situation depends on your specific circumstances — a broker will identify the best match.
Specialist Residential Lenders
- Precise Mortgages: Part of the OSB Group. Strong on adverse credit, self-employed, and complex income applications. Widely used for borrowers with CCJs, defaults, or missed payments in their recent history.
- Kensington Mortgages: One of the UK’s longest-established specialist lenders. Good for complex income structures, self-employed applicants, and those with credit blips. Also active in the later-life mortgage space.
- Pepper Money: Well-regarded for adverse credit cases including satisfied CCJs, defaults, and debt management plans. Takes a manual underwriting approach rather than automated scoring.
- Together Money: Covers residential, buy-to-let, bridging, and commercial. Particularly strong on non-standard properties and short-term lending. Assess applications individually.
Private Banks (High Net Worth)
- Coutts: The UK’s most recognised private bank. Mortgage lending is part of a full private banking relationship, typically requiring significant assets under management. Bespoke rates negotiated individually.
- Arbuthnot Latham: Private bank with a strong mortgage offering for HNW individuals, entrepreneurs, and those with complex asset structures. Considers assets as well as income for lending decisions.
- Weatherbys Bank: Private bank serving high-net-worth clients, particularly those with racing, equestrian, or rural property interests. Individual case underwriting.
- C. Hoare & Co: One of the UK’s oldest private banks. Mortgage lending based on individual assessment and long-term client relationship rather than standardised products.
Bridging and Short-Term Lenders
- LendInvest: Regulated bridging and buy-to-let lender. Useful for property purchases requiring speed or where the property cannot be mortgaged on a standard residential basis initially.
- Octane Capital: Specialist bridging lender for complex and time-sensitive transactions. Fast decision-making and individual case assessment.
Important: Most specialist and private bank lenders are not accessible directly by borrowers — they operate through broker relationships. A whole-of-market mortgage broker who works with specialist lenders is the most efficient route to these products.
Private Mortgage Rates 2026
Private mortgage rates vary significantly depending on the type of lender, the borrower’s profile, and the complexity of the case. As a general guide:
| Lender Type | Typical Rate Range | Key Factor Driving Rate |
| Specialist residential lenders | Typically 1–3% above high-street rates | Credit history, LTV, income complexity |
| Private banks (HNW) | Negotiated individually — can be competitive for large loans | Assets under management, relationship, loan size |
| Bridging lenders | 0.5–1.5% per month (short-term) | Exit strategy, LTV, property type, term |
| Family private mortgage | Set by the parties — often below market rate | Family agreement, tax considerations |
Specialist lenders charge more than mainstream banks because they take on higher-risk or more complex cases — but their rates are often still meaningfully lower than credit cards, unsecured loans, or the alternative of not being able to borrow at all. For borrowers who do not qualify for a high-street mortgage, a specialist lender at a higher rate is often the most practical route to purchase.
Private bank rates for large loans can sometimes be surprisingly competitive — particularly where the borrower has significant assets and the loan-to-value is low. For a £1M+ mortgage, a private bank relationship may offer a better rate than a high-street product once negotiation is factored in.
Who Qualifies for a Private Mortgage?
Private and specialist mortgage lenders serve borrowers across a wide spectrum. The most common profiles include:
Self-employed individuals with complex income: Limited company directors taking dividends and a low salary, sole traders with variable annual income, contractors paid via umbrella companies or limited companies. High-street banks often struggle with these — specialist lenders are more adept at assessing the true income picture.
Borrowers with adverse credit: CCJs, defaults, missed mortgage payments, debt management plans, or previous bankruptcy. The severity, age, and settlement status of the adverse event determines which specialist lenders will consider the application and on what terms. A specialist broker is essential — applying directly to mainstream lenders with known adverse credit wastes hard search footprints and time. See our guide on private mortgage lenders for bad credit.
High-net-worth individuals: Borrowers with substantial assets but income that does not fit standard salary-based affordability models — for example, those living from investment portfolios, rental income, or assets rather than employment income.
Expats and foreign nationals: UK non-residents or foreign nationals purchasing UK property. High-street banks typically decline non-UK tax residents; specialist lenders and private banks fill this gap.
Non-standard property buyers: Properties of non-standard construction, unusual title situations, or properties deemed unmortgageable by mainstream lenders. Specialist lenders assess these on a case-by-case basis.
Large loan borrowers: Those needing to borrow above the high-street maximum — either because of LTV caps on large properties or because income multiples limit the borrowing. Private banks and large loan specialist lenders can facilitate these.
Family Private Mortgage — Lending Money to a Family Member
A family private mortgage — sometimes called an interpersonal mortgage or intrafamily loan — is an arrangement where one family member lends money directly to another to purchase a property, without a bank or building society acting as the lender. It is most commonly used by parents helping adult children onto the property ladder, or between siblings purchasing together.
How a Family Private Mortgage Works
The basic structure mirrors a standard mortgage: the lender (family member) provides the funds, the borrower uses them to purchase the property, and regular repayments are made over an agreed term. The key difference is that the lender is a private individual rather than a financial institution.
For the arrangement to work properly and protect both parties, the following are essential:
A formal written loan agreement: Drawn up by a solicitor, setting out the loan amount, interest rate (if any), repayment schedule, and what happens if the borrower defaults. An informal verbal agreement provides no legal protection for either party.
A legal charge over the property: The lending family member should register a charge on the property title at HM Land Registry. This secures the loan against the property — meaning if the property is sold, the loan is repaid before the borrower receives any proceeds. Without this, the family lender is an unsecured creditor.
Tax considerations: If the family lender charges interest, that interest is income and must be declared for tax purposes. If no interest is charged and the loan is between connected persons, HMRC may still impute a market interest rate for tax purposes in certain circumstances. Both parties should take tax advice before entering the arrangement.
Interaction with a standard mortgage: If the borrower is also taking a standard mortgage from a bank, the bank will require disclosure of all other loans secured on the property. A family loan registered as a second charge will affect the bank’s LTV calculation and may need to be structured as a gifted deposit rather than a loan, depending on the lender’s criteria.
Family Private Mortgage vs Gifted Deposit
Parents helping children purchase a property have two main options: a private mortgage (a loan that is repaid) or a gifted deposit (a cash gift that does not need to be repaid). Most mainstream mortgage lenders accept gifted deposits but require a written declaration that the funds are a gift with no expectation of repayment. If the funds are structured as a loan, the lender may treat it as a liability rather than equity — reducing the borrower’s affordability.
For families wanting the lending party to retain a financial interest in the property without it being a standard mortgage, a private mortgage between family members with a registered charge is the appropriate route. A solicitor and independent financial advice are essential before proceeding.
How to Apply for a Private Mortgage in the UK
Identify which type of private mortgage you need. Are you looking for a specialist lender because you do not meet high-street criteria? A private bank because of large loan size or asset-based income? Or a family private mortgage? The type determines the process entirely.
Speak to a whole-of-market specialist broker. Most private and specialist lenders do not deal directly with the public. The only way to access their products is through a broker who has established relationships with them. A specialist mortgage broker will identify which lenders are appropriate for your specific profile, carry out a soft search where possible to protect your credit file, and structure your application to maximise the chance of approval.
Prepare your documentation. Private and specialist lenders require thorough documentation. Depending on your profile this may include: SA302s and tax year overviews (self-employed), full business accounts, investment portfolio statements, asset schedules, overseas income evidence, or details of adverse credit events. The more complex your case, the more documentation you should have prepared in advance.
Submit the application. Your broker will package and submit the application to the most appropriate lender. Specialist lenders typically use manual underwriting — a real person reviews your case rather than an automated decision system. This means more flexibility but may also mean more questions.
Property valuation and offer. Once the application is assessed, the lender will instruct a valuation. If the property and application are acceptable, a formal mortgage offer is issued. For bridging finance, this process can take days; for full residential mortgages through a specialist lender, expect 2–6 weeks.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate buy-to-let mortgages.
The Financial Conduct Authority does not regulate commercial mortgages.
Commercial mortgages by referral only.
FAQs — Private Mortgages & Private Mortgage Lenders UK
What is a private mortgage?
A private mortgage is a home loan arranged outside the mainstream high-street banking system. In the UK, the term is used to describe two different things: a mortgage from a specialist or private bank lender (for borrowers who do not fit standard high-street criteria), or a direct loan arrangement between family members where one party lends money to another to buy property. Most searches for “private mortgage lenders” relate to specialist non-bank lenders rather than family arrangements.
Who are private mortgage lenders in the UK?
Private mortgage lenders in the UK include specialist residential lenders (such as Precise Mortgages, Kensington, Pepper Money, and Together), private banks (such as Coutts, Arbuthnot Latham, and Weatherbys), and short-term bridging lenders. Most specialist lenders are only accessible via mortgage brokers — they do not deal directly with the public. A whole-of-market broker will know which lenders are appropriate for your specific profile and circumstances.
What is the difference between a private mortgage lender and a bank mortgage?
Private and specialist mortgage lenders offer more flexible criteria than high-street banks — assessing income holistically, considering adverse credit, and lending on non-standard properties or complex situations. The trade-off is typically a higher interest rate, reflecting the increased risk or complexity. High-street banks offer lower rates but only to borrowers who meet their standard criteria — generally employed applicants with clean credit, straightforward income, and standard property types.
What are private mortgage rates in the UK?
Private and specialist mortgage rates vary significantly by lender type and borrower profile. Specialist residential lenders typically charge 1–3% above equivalent high-street rates. Private bank rates are negotiated individually and can be competitive for large loans with significant assets. Bridging lenders charge monthly rates, typically 0.5–1.5% per month. Family private mortgages can be set at any rate the parties agree, including zero, subject to tax considerations.
Can I get a private mortgage with bad credit?
Yes. Several UK specialist lenders — including Precise Mortgages, Pepper Money, and Kensington — specifically serve borrowers with adverse credit histories including CCJs, defaults, missed payments, and previous debt management plans. The severity, age, and settlement status of the adverse events determines which lenders will consider the application and on what terms. A specialist broker is essential — applying directly to mainstream lenders with known adverse credit wastes hard search footprints and time. See our guide on private mortgage lenders for bad credit.
Can a family member lend me money to buy a house?
Yes. A family member can lend you money to buy a property — this is called a family private mortgage or interpersonal mortgage. For it to work properly and protect both parties, you need a formal written loan agreement drawn up by a solicitor, and the loan should ideally be secured as a legal charge on the property at HM Land Registry. If you are also taking a bank mortgage, you must disclose the family loan to the bank lender — it will affect their affordability and LTV calculations. See our guide to private mortgages between family members.
Are private mortgage lenders regulated in the UK?
Most are. Specialist residential mortgage lenders and private banks offering regulated mortgage contracts (loans secured on residential property occupied by the borrower) must be authorised and regulated by the FCA. Buy-to-let and commercial mortgages are not regulated in the same way. Always check FCA authorisation before working with any lender — you can verify this on the FCA Register at register.fca.org.uk. Bridging lenders vary: some bridging products are regulated, others are not, depending on whether the security property is the borrower’s residence.
Do I need a broker to access private mortgage lenders?
In most cases, yes. The majority of specialist and private mortgage lenders do not deal directly with borrowers — they operate exclusively through the broker/intermediary channel. This means the only practical way to access their products is through a mortgage broker who has an established relationship with them. A whole-of-market broker will search across all available specialist lenders, identify the most appropriate match, and handle the application on your behalf.
What is the minimum deposit for a private mortgage?
This varies considerably by lender type and borrower profile. Some specialist lenders lend up to 85–90% LTV (10–15% deposit), though lower LTV ratios (larger deposits) typically access better rates. For adverse credit cases, a larger deposit — often 15–25% — is usually required to offset the increased risk. Private bank lending is highly individual and deposit requirements are negotiated based on the full financial picture. Bridging lenders can sometimes work at higher LTVs but at significantly higher rates.
How is a private mortgage different from a second charge mortgage?
A second charge mortgage is a separate loan secured against a property that already has a first charge mortgage on it. It can be provided by a mainstream or specialist lender. A private mortgage is simply a mortgage from a non-high-street lender — it can be a first or second charge product. The two terms are not interchangeable: a second charge mortgage describes the security position, while a private mortgage describes the lender type. Second charge mortgages are often used to raise capital without disturbing an existing first charge deal.
