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Large mortgage loans

Last updated on 16th November 2023 by Martin Alexander

If you’re buying a high-value property, you’ll need a large mortgage. While lenders will assess your income and affordability, you’ll also need to find a lender that doesn’t have limitations on how much they’ll lend.

This guide will explain how you can get a high-net-worth mortgage. We’ll also discuss the lenders you can approach, deposit amounts and the application process.

What is a large mortgage?

A large mortgage is typically a loan of more than £1 million. The most you can borrow from high street lenders ranges from £1 million to £5 million. 

Lenders have restrictions on how much they’ll lend to a person due to the risk involved with high-value mortgage amounts.

Other lenders may consider mortgages up to £10 million. For anything higher, you’ll need a specialist lender.

How much deposit will I need?

The deposit you’ll need will depend on how much you want to borrow. For instance, you can get a £1 million mortgage with a 5% deposit, but there won’t be many lenders to choose from.

To borrow more than £1 million, you’ll need at least a 15% deposit. Some lenders will require higher deposits of between 25% and 40%.

You can improve your choice of lenders and interest rates by aiming for at least a 25% deposit.

What’s the maximum mortgage I can get?

The maximum mortgage you can get will depend on how much you earn. Some lenders will lend up to a maximum of 6.5 times an applicant’s income. However, the industry standard is between 3 and 5 times an annual income.

How can I borrow more for a mortgage?

You can increase the amount you can borrow by using income from:

  • Employment salary and bonuses
  • Dividends
  • Retained company profits
  • Buy to let income
  • Income from investments

You’ll need to provide evidence to lenders through bank statements and company accounts to support your mortgage assessment.

How to get a large mortgage

If you need a high-value mortgage, you can improve your chances with the following:

  • Save for a higher deposit. Aiming for at least a 25% deposit will give you a much better choice of lenders, better rates and cheaper fees. You’ll unlock headline rates and most lenders if you can save for a 40% deposit.
  • Show as much income as possible. To borrow a large amount, you’ll need a significant income. You’ll need to show lenders you earn enough to repay the mortgage you’ve applied for.
  • Compare lenders with an advisor. Doing so will allow you to compare what you can borrow from each lender and whether you meet the criteria for a large mortgage. You’ll also need to find a lender to approve your desired amount.
  • Use a joint mortgage if you need to. Applying with a spouse or business partner can allow you to borrow more. Lenders will assess income across each applicant, resulting in a higher loan amount.

Which lenders offer large mortgages?

  • Accord will consider mortgages up to £2 million
  • Aldermore go up to £1 million at 85% LTV
  • Barclays have a maximum mortgage of £5 million
  • Dudley Building Society will lend up to £1 million at 95% LTV and up to £2.5 million at 75% LTV
  • Halifax will lend up to £5 million
  • Kensington go up to £2 million at 80% LTV
  • Nationwide will lend up to £5 million
  • Santander go up to £3 million at 75% LTV but will lend more under certain circumstances

Please note: Lenders constantly change their criteria, so consult an advisor before approaching a lender. Furthermore, your circumstances may suit other lenders.

Large mortgage FAQs

You’d need development finance to fund property development rather than a mortgage. A mortgage is only possible once you’ve built your property.

Development finance is for property development, such as building an apartment block. Funds are also released in stages and won’t be released upfront in one large sum, as mortgages often are.

Learn more: What is development finance?

The best way for a company director to apply for a large mortgage is to use the retained profits in your company. By using retained profits in a company, you can borrow much more than using income from dividends or a salary.

Most company directors will take salaries as dividends, which may not cover the amount you want to borrow.

Read more: How to get a mortgage as a company director

About the author

Martin Alexander
Senior Mortgage Advisor

Martin is a senior mortgage advisor who has held a CeMAP qualification for over 15 years while completing an MBA in Global Banking and Finance.