Wealthy overseas buyers are increasingly utilising mortgage financing for 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 increased 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. This rise indicates a shift from cash purchases in the top end of the market, as buyers choose to preserve capital for other investments.
London dominated this high-value lending, accounting for 88% of mortgages worth £5 million or more. This means 292 of the 333 total mortgages were secured against properties in the capital, an increase from 84% the previous year.
Francesco Amato, Senior Debt Advisor at Karis Capital, noted that this trend reflects a change in how wealthy buyers approach the property market, with many opting to borrow even when they have cash available. He added that arranging finance at this level often involves complex income structures and international assets.