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

HOW do private bank mortgages really compare with the high street? New research by Newspage reveals that a £2.5m two-year fix costs about £26,500 more with Coutts than with NatWest, as high street lenders move in on private banks’ ideal customers.

The figure is the extra interest over two years plus the difference in fees, based on the two banks’ broker rate sheets, as viewed by Newspage on 19 October 2026.

A mortgage with a private bank is pitched as the natural home for wealthy borrowers. These banks set their entry bars around the Financial Conduct Authority's (FCA) high net worth mortgage definition of £300,000 in net income or £3m of net assets.

Private bank mortgages sometimes have additional criteria on loan size, with Investec requiring a minimum loan of £1m, and Coutts setting a new-client minimum of £1.5m.

But the private bank mortgage sector is one the high street banks are increasingly focused on.

How much will high street lenders lend to high earners?

A trend is forming of high street lenders moving up-market, with Newspage research showing four of the largest high street lenders are now lending six times income or more to high earners: HSBC, NatWest, Barclays and Nationwide.

These figures are maximums rather than guarantees, with the amount available depending on affordability, deposit, credit history and product eligibility.

Loan sizes have followed, with HSBC, Nationwide and Halifax lending up to £5m at 75% loan-to-value, NatWest up to £7.5m, and Barclays considering loans above £10m at up to 65%.

Aaron Strutt, Product and Communications Director at London-based Trinity Financial, said: "High street mortgage lenders have been targeting traditional private bank customers for quite some time. They are tempting them away from the private banks with lower fixed and tracker rates plus cheaper arrangement fees.

"Many high street banks have set up £1 million+ departments to handle the more specialist enquiries and to get these mortgages agreed quickly and efficiently.

"It is surprising that so many high street lenders and even small building societies are keen to issue such large mortgage loans to undercut the rates offered by the private banks. They don't require assets to be transferred to them or a long-term banking relationship.

"Private banks consistently offer mortgages that the high street lenders would not dream of. For example, they offer mortgages requiring high net worth exemptions and mortgages on high-end estates, and mortgages for international clients living overseas.

"Some of them also offer low-deposit, larger mortgage loans to bankers and higher-earning business owners."

Who qualifies for a private bank mortgage?

A borrower who meets the FCA's income or asset test may still fall below a private bank's own entry bar if the loan they need is too small.

Steven Greenall, Mortgage and Protection Advisor at Dunmow-based Protect & Lend, said: "Private banks are perfect for wealthy clients who are not reliant on an income to reflect their true affordability.

"Private banks will look at stock portfolios and pensions and property portfolios. Even artwork and classic cars can be assessed and used to support large lending.

"Generally the net worth of these clients needs to be £2-3 million, but it's interesting what can be used to make up that value. Rates and fees can even be competitive when compared to the high street lenders."

Are private bank mortgage rates better than the high street?

Coutts charges 5.49% on a two-year fix at 60% loan-to-value, plus a 0.5% arrangement fee, which comes to £12,500 on a £2.5m loan. In comparison, NatWest's high-value rate is 5.19% with a flat £995 fee on mortgages over £2m.

Because Coutts' fee is a percentage of the loan, the gap widens as the mortgage gets larger.

Craig Fish, Director at London-based Lodestone Mortgages, said: "There is a certain prestige attached to a private bank mortgage, but prestige isn't a rate, and in a lot of the cases I see the high street matches it or beats it.

“The catch is the relationship. Keen pricing often comes with an expectation that you move investments or cash across, and the cost of that needs weighing against the headline rate. 

"My advice to any high earner is this. Don't mistake exclusivity for value. Test the whole market first, then decide whether the private bank is offering something the high street can't.”

What income do private banks accept that the high street won't?

The primary attraction of private banks is how they handle more complex income. Coutts and Investec count carried interest, bonuses and equity income alongside company cash flow and foreign currency earnings. Arbuthnot Latham also considers dividends and trust payments.

On the other hand, high street lenders tend to rely on set formulas, such as NatWest counting half of a discretionary annual bonus, and Santander accepting foreign earnings in only four currencies.

Ranald Mitchell, Director at Norwich-based Charwin Mortgages, said: "Private banking is not automatically better banking. It comes into its own when the borrower is wealthy, complex or poorly served by rigid high street rules.

"Someone with large bonuses, carried interest, trust income, overseas earnings, investment income or an unusual asset position may find a private bank far more flexible because the case is underwritten around the individual rather than forced through a standard scorecard.

"The trade-off is that the mortgage may sit within a wider relationship, with expectations around deposits or investments, and the cheapest headline rate is not guaranteed.

"For a straightforward high earner with clean PAYE income, the high street can still be hard to beat. The real question is not whether private banking sounds more exclusive, but whether its flexibility solves a problem the mainstream market cannot."

Is a private bank mortgage worth it?

High street lenders now compete with private banks on loan size and, in the case of Coutts and NatWest, on price. The case for a private bank rests on complex income, wealth held in assets or borrowing needs that fall outside standard criteria.

Nouran Moustafa, Practice Principal and IFA at Roxton Wealth, doesn't believe having a private bank mortgage is a status symbol in itself, but says “it is useful when somebody is wealthy enough to borrow but too complicated for a high street scorecard”.

She added: "That could mean carried interest, large bonuses, overseas income, trusts, investments or a seven-figure loan where the overall balance sheet matters more than one payslip.

"But high earners should never assume private means cheaper. The rate can be higher, fees can differ and some banks want a wider banking or investment relationship before the economics really stack up.

"Equally, someone earning £500,000 with straightforward PAYE income may still get a perfectly good high street mortgage.

"Private banking earns its place through flexibility, not prestige. If the high street can do the job properly and more cheaply, use the high street."

Your questions answered

Questions answered by Aaron Strutt, Product and Communications Director at London-based Trinity Financial.

What is a private bank mortgage, and how does it differ from a high street mortgage?

Private bank mortgages are generally aimed at wealthier borrowers who need larger mortgage loans often when they have more complicated financial circumstances. Unlike high street lenders, which tend to have more standardised acceptance criteria, private banks can take a more individual approach to assessing income, assets and affordability, provided the client is wealthy enough. Each private bank tends to have different qualification criteria. Generally speaking, though, they all want to work with wealthy borrowers and build long-term financial relationships to help them manage their investments and income. Some high street banks have specialist large mortgage loan departments as well as private banking arms.

They can be particularly useful for company directors, entrepreneurs, private equity professionals and borrowers with substantial investment portfolios. However, the high street banks have become much more competitive in the large mortgage market. As a result, private banking is not always necessary, even for multi-million-pound mortgages. Some clients prefer private bank relationships and the services they provide. They don’t want to have to call lenders and jump through hoops when they could just ring up a dedicated banker to sort it out for them.

How much do you need to earn or own to get a private bank mortgage?

Some private banks want applicants to earn £250,000 to £300,000 or more a year, while others are more interested in their overall wealth and assets. Many focus on mortgage loans of £1 million or more, although their minimum requirements vary considerably.

We regularly deal with wealthy clients who have millions of pounds in property, savings or investments but relatively modest incomes. Private banks can sometimes use these assets to support affordability. This is particularly helpful for borrowers who have sold businesses, retired early or receive irregular income. 

Are private bank mortgage rates cheaper than high street rates?

Not necessarily. The high street lenders have been undercutting most private banks recently, offering cheaper fixes and tracker rates. In fact, some of the most competitively priced £1 million+ mortgages are available from high street banks and building societies.

Private banks can offer individually negotiated rates, but their arrangement fees can be substantially higher. Some charge a percentage of the mortgage rather than a flat fee, which can make a significant difference on larger loans.

We often find that high street lenders offer better overall value when a borrower has a strong income, a sizeable deposit and straightforward finances. The real benefit of private banking is often the flexibility on the clients and the property they are buying or remortgaging, rather than the interest rate.

Do you have to move your savings or investments to a private bank to get a mortgage?

Some private banks want clients to transfer significant savings or investment portfolios to them as part of an ongoing banking relationship. This is commonly referred to as an assets under management requirement.

Other private banks are happy to provide mortgages without requiring clients to transfer their investments. We have arranged private bank mortgages where clients have been able to keep their existing investment arrangements.

Moving a substantial portfolio can involve additional management charges and potentially tax implications, so it is essential to understand the bank's requirements before agreeing to a mortgage.

Should high earners use a broker to compare private bank and high street mortgages?

Ideally. It is quite time-consuming to assess all of the lender websites including through the high street and private banks. A good broker will know if you need a private bank mortgage or a more standard deal through a high street lender.  

We regularly compare private banks with mainstream lenders. Some high street lenders have excellent large-loan teams and can offer highly competitive rates without requiring clients to move their savings or investments.

A good mortgage broker should compare the interest rates, arrangement fees, borrowing limits, repayment flexibility and any ongoing banking requirements. For someone borrowing several million pounds, getting this right can potentially save tens of thousands of pounds.