Private mortgages are expensive and are only something I will enter a client into if we have a very clear exit strategy and the benefits outweigh the risks. Typically a private mortgage will carry a 1-2% fee and be at a high interest rate. So what the 3 situations where we typically use private lending? My top reason is to use private lender for deposit money. Say you have your home listed for sale and then while you are waiting for a buyer you stumble upon the house of you