High Value Mortgages UK: Borrowing has hit a new high

The market for high-value mortgages in the UK has shifted. In the year to March 2026, 333 residential mortgages of £5 million or more were completed on UK homes, up from 313 the year before. Together, those loans were worth £3.3 billion, with the average prime residential loan sitting at roughly £10 million.

For years, the top of the UK housing market ran on cash. Ultra-high-net-worth buyers, many of them overseas, bought outright and moved on. That pattern is breaking down, and debt is filling the gap.

Cash buyers are being replaced by borrowers

Two things are happening at once.

The first is a straightforward supply change. Some of the overseas ultra-high-net-worth buyers who previously transacted in cash are simply not in the market in the same numbers, following changes to the non-dom regime. Fewer cash buyers mechanically means a higher share of purchases involve a lender.

The second is a deliberate choice, and it’s the more interesting one. Plenty of buyers at this level could pay cash and are choosing not to.

“The increase in mortgages worth £5 million or more reflects a change in how wealthy buyers are approaching the luxury property market,” says Francesco Amato, Senior Debt Advisor at Karis Capital. “Even when wealthy people have cash to buy luxury properties, many are choosing to borrow because it allows them to preserve capital for other investments.”

That logic holds particularly well when a property is being bought as one asset among several rather than as a home to be owned outright. Capital tied up in bricks is capital not working elsewhere.

London still takes almost nine in ten super prime loans

The geography of super prime mortgages remains extremely concentrated. Of the 333 loans of £5 million or more, 292 (88%) were secured against London property, up from 263 (84%) the previous year.

Outside London, the South East and the South West, there were eight. Eight, out of 333.

Central London price falls are pulling investors back in

Part of what is drawing buyers back is price. House prices in central London have moderated considerably over the past year, falling as much as 22.8% in Westminster and 10.7% in Kensington and Chelsea, according to ONS data.

Lower prices do two things: they bring properties within reach of buyers who were previously priced out, and they create an entry point for investors who expect values to recover.

International demand has held up through this, with continued interest from buyers based in the UAE, Hong Kong and Singapore.

“London remains one of the world’s premier destinations for international wealth and continues to attract buyers from across the Middle East and Asia,” says Francesco Amato, Senior Associate. “Whilst the change in the non-dom rules has had an impact, many see the current drop in luxury property as offering compelling long-term investment opportunities.”

Why luxury property finance isn’t just about the rate

If more prime purchases now involve borrowing, the quality of that borrowing arrangement matters more than it used to. And at this level, the cheapest headline rate is rarely the right answer.

“Luxury property finance is a highly specialised area of the market,” says Amato. “Borrowers often have complex income structures, international assets or bespoke lending requirements. A tailored borrowing plan can make a big difference to both the speed of a luxury property purchase and the overall outcomes and returns.”

The practical issues that come up repeatedly at £5 million and above:

• Income that doesn’t fit a standard affordability model: Carried interest, dividends across multiple jurisdictions, trust distributions and irregular bonuses all need underwriting on their own terms.
• Assets held offshore or in corporate structures: Ownership through an SPV, a trust or a non-UK entity narrows the lender pool considerably.
• Speed: Competitive prime purchases are frequently won on the certainty and pace of funding rather than the offer price.
• Currency and cross-border exposure: Borrowers earning in one currency and buying in sterling need the structure to reflect that.

A mainstream lender’s process is not built for any of this. Getting the structure and lender right at the outset tends to determine both whether a deal completes and what it costs over its lifecycle.

Talk to us about high-value mortgage finance

Karis Capital advises on complex, large-scale residential and commercial property finance, including high-value mortgages for UK clients. If you’re considering a prime purchase or refinancing an existing facility, get in touch to see how the deal could be structured.

Mortgage data provided by the Financial Conduct Authority to Karis Capital, year ending 31 March 2026, regulated mortgages. House price data: ONS, Private rent and house prices, UK, July 2026.