Wealthy overseas buyers are increasingly using mortgage financing to purchase high-value residential properties in Britain, according to new data from real estate adviser Karis Capital.
The number of regulated residential mortgages worth £5 million or more rose to 333 in the past year, up from 313 the previous year. The total value of these mortgages reached £3 billion, with the average loan standing at approximately £10 million.
The increase represents a shift away from cash purchases in the top end of the market, as buyers opt to preserve capital for alternative investments rather than deploying cash reserves for property acquisitions.
London dominates high-value lending
London accounted for 88% of mortgages worth £5 million or more, with 292 of the 333 total mortgages secured against properties in the capital. This represents an increase from 84% the previous year, when 263 such mortgages were completed in London.
Only eight of the 333 residential mortgages above £5 million were for properties outside London, the South East and the South West, highlighting a geographical concentration in the high-value mortgage market.
Francesco Amato, Senior Debt Advisor at Karis Capital, said: “The increase in mortgages worth £5 million or more reflects a change in how wealthy buyers are approaching the property market. Even when wealthy people have cash to buy properties, many are choosing to borrow because it allows them to preserve capital for other investments.”
Market context
The data emerges against a backdrop of recent changes to non-domicile tax rules, which have affected international buyers in the UK property market. Specialist mortgage products have become increasingly important for buyers with complex income structures and international assets.
Amato noted that London continues to attract buyers from the Middle East and Asia, with some viewing current market conditions as presenting long-term investment opportunities despite regulatory changes.
He added that arranging finance at this level requires more than securing competitive interest rates. “Borrowers often have complex income structures, international assets or bespoke lending requirements,” he explained.
The rise in high-value mortgage activity contrasts with broader trends in the specialist lending market, where speed of execution and tailored solutions have become increasingly important factors for borrowers.
