Number of £5m+ mortgages rises to 333 in 2025, Karis Capital finds
The specialist real estate finance advisory firm said the figures pointed to more wealthy buyers choosing to use mortgage finance rather than purchase properties entirely with cash.
The number of residential mortgages worth £5m or more increased to 333 last year, up from 313 the previous year, according to data from Karis Capital.
The specialist real estate finance advisory firm said the figures pointed to a shift in the luxury property market, with more wealthy buyers choosing to use mortgage finance rather than purchase properties entirely with cash.
The 333 regulated mortgages had a combined value of £3.3bn, with the average loan standing at approximately £10m.
London accounted for 292, or 88%, of mortgages worth at least £5m, compared with 263, or 84%, the previous year.
Just eight of the 333 mortgages were secured against properties outside London, the South East and South West.
Francesco Amato, senior debt adviser at Karis Capital, said: “The increase in mortgages worth £5 million or more reflects a change in how wealthy buyers are approaching the luxury property market.
“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.”
Karis Capital said falling property prices in parts of central London were also contributing to renewed interest from investors, with prices having fallen by as much as 22.8% in Westminster and 10.7% in Kensington and Chelsea over the past year.
The firm said prime London property continued to attract international demand, including from buyers based in the UAE, Hong Kong and Singapore.
Amato added: “London remains one of the world’s premier destinations for international wealth and continues to attract buyers from across the Middle East and Asia.
“Whilst the change in the non-dom rules has had an impact many see the current drop in luxury property offers compelling long-term investment opportunities.”
He concluded: “Luxury property finance is a highly specialised area of the market. 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.”
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