Buying a luxury home in Kensington and Chelsea? Here's how to fund it with a mortgage

by Aaron Strutt

Aug 10 2023

Kensington and Chelsea is an affluent district in West London known for its luxurious and expensive properties. The area boasts a mix of elegant townhouses, grand mansions, and upscale apartments.

Last year, most property sales in Kensington And Chelsea involved flats, which sold for on average £1,391,688. Terraced properties sold for an average price of £4,048,491, while semi-detached properties fetched £10,710,563. This is according to Rightmove.

How to get a large mortgage loan to buy in Kensington

You do not necessarily need a private bank mortgage to buy a big home, but it can be one option to consider, depending on your financial situation and preferences. Here are a few things to keep in mind:

1. Traditional Mortgage: Most people purchase homes with traditional mortgages offered by private banks, high street lenders and building societies. The size of the mortgage you can obtain will depend on your credit score, income, and down payment. It is usually possible to borrow around four to five times single or joint salaries. There are high net work exemptions and it is possible to lend against assets such as properties, stocks and share portfolios.  

2. Private Bank Mortgage: Private bank mortgages are typically offered by high-end, boutique financial institutions and may cater to individuals with substantial wealth. These mortgages can be customized to the individual's unique financial situation and may offer more flexibility. However, they can come with higher interest rates and stricter eligibility requirements.

3. Consider Your Financial Situation: When deciding on the type of mortgage, consider your financial situation, creditworthiness, and the size of the home you want to purchase. A private bank mortgage may be suitable if you have substantial assets and income, but it's not the only option.

4. Down Payment: To buy a big home, you'll generally need a larger down payment of 20%. This can be a significant factor in determining the type of mortgage you qualify for and the interest rates you'll receive. Private banks may have different down payment requirements compared to traditional lenders.

5. Expert Mortgage Broker: It's often a good idea to consult a specialist mortgage broker who can help you explore your options and guide you toward the most appropriate mortgage solution for your specific needs and goals. Trinity Financial's brokers have a strong track record of doing this.

Aaron Strutt, product director at Trinity Financial, says: "Whether or not you need a private bank mortgage to buy a big home depends on your financial situation and preferences.

"Traditional mortgages through high street lenders are the most common choice for homebuyers, but private bank mortgages can be an option for those with substantial assets and income who want a more customized solution."

£1 million+ mortgages 

You do not necessarily need a private bank to secure a £1 million+ mortgage to purchase an expensive home, but it can be one option to consider, depending on your financial situation and preferences. 

Trinity Financial has access to lenders offering UK nationals and overseas buyers £1 million+ mortgages. High street banks and building societies tend to offer more competitively priced rates than private banks.

Here are some features that are often associated with expensive houses in Kensington and Chelsea:

1. Size: Expensive houses in Kensington tend to be spacious, with multiple bedrooms and bathrooms, large living areas, and extensive outdoor spaces.                                                                                                 

2. Luxurious Amenities: High-end properties often have luxury amenities, such as private gardens, swimming pools, home theatres, gyms, and concierge services. Trinity Financial's brokers have access to private banks and selected high-street lenders offering £1 million+ mortgages for high-end properties in London.

3. Gardens and Outdoor Spaces: Many properties in Kensington, especially those along Kensington Palace Gardens, have beautiful private gardens or access to communal gardens. 

4. Proximity to Amenities: Expensive houses in Kensington are close to high-end shopping districts, fine dining establishments, cultural attractions, and excellent schools. 

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage