Large mortgages

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Large mortgages

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Last reviewed on 23rd March 2022

Applying for a large mortgage loan isn’t always easy, especially if you’re looking to borrow more than one million pounds. This isn’t because of income and affordability, but particularly because lenders will limit how much they’ll lend to an individual.

The majority of high street lenders will only lend up to a maximum of one million pounds. Other mainstream lenders may lend up to a maximum of two million pounds but only under certain circumstances.

Our experts are available to help you with your mortgage. You can make an enquiry to start your mortgage application at any time.

What is considered to be a large mortgage?

A mortgage is considered large if the loan amount is higher than one million pounds. The UK House Price Index (HPI) shows that the average UK house price in January 2022 was £273,762. As a result, the majority of mortgage loans will be below this figure. This is also why some lenders are reluctant to lend over one million pounds to a single borrower.

High-street lenders typically aren’t a good match for those in need of multi-million-pound mortgages as private lenders can offer better rates. Furthermore, high-street lenders aren’t likely to consider larger loan amounts. Specialist lenders are also likely to be a better choice for this very same reason.

Features of large mortgages include:

  • Mortgages up to £30m
  • Maximum 95% loan to value
  • Interest only and repayment options
  • Residential and buy to let mortgages
  • Bridging loans, secured loans and development finance
  • Limited company mortgages
  • Offshore mortgage solutions
  • Finance from private banks and specialist lenders
  • Tailored mortgage solutions

Our advisors work with specialist lenders and private lenders, as well as high-street lenders. As a result, we can compare the deals you’re eligible for, in addition to suitable lenders.

How difficult is the application process?

Applying for a large mortgage isn’t necessarily more difficult than a regular mortgage. The mortgage application and assessment process are very similar. It can only become more difficult because of the limited number of lenders that are willing to offer such big mortgages.

You’ll need to prove that you can afford to repay the mortgage and you’ll also need a deposit to match the loan you’re applying for. That being said, this is no different to any other mortgage.

How can I get a large mortgage for a high-value property?

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

  • Aim for a 40% deposit
  • Check you have good credit
  • Clear any debt you have
  • Show as much income as possible
  • Select a suitable lender
  • Use a joint mortgage if you need to

Your mortgage application needs to be flawless, especially if you’re applying for a mortgage for over £1 million.

It’s highly recommended that you speak to an advisor who can assess whether your application is ready. This is to avoid being declined and harming your credit score. Furthermore, you can ensure that your lender is suitable.

ask a mortgage broker

Can I get a large mortgage with a small deposit?

Large deposits are always preferred by lenders. This is because the risk in lending a mortgage with a large deposit is a lot less in comparison to a mortgage with a small deposit. If anything went wrong, then lenders have less to recoup in addition to the property which should cover the loan.

What this means for large mortgage applications is that higher deposits are certainly preferred to smaller deposits. In reality, this is the case for any mortgage, despite its value.

How your loan to value can help

Lenders will use LTV (Loan to Value) as part of their mortgage assessment. Those with higher deposits are typically offered higher mortgage amounts, along with preferential rates. For instance, the same lender may offer you £350,000 at 90% LTV or £600,000 at 75% LTV. The mortgage at 75% LTV is also likely to have a better rate.

It is possible to secure a mortgage with a small deposit as lenders will also assess your income and affordability. As all circumstances vary, it’s impossible to give you a tailored answer without speaking to you.

How much can I borrow?

Along with LTV, affordability is also a major factor when mortgages are assessed. Big mortgages mean big repayments, so lenders need to assess whether or not the mortgage you’ve applied for is affordable.

Affordability is based on your income as well as any outstanding loans and expenditures. Lenders need to have the comfort of knowing that you’re financially capable of taking on a substantial commitment.

For regular mortgage amounts, lenders will usually lend up to four or five times your annual gross salary. If you’re self-employed, then assessments are typically made on four or five times your net profit and dividends for directors.

If you’re a high earner and require a substantial mortgage, lenders may lend more than the industry standard. In some cases, lenders that specialise in larger mortgages may even lend up to seven times your income. Use our mortgage affordability calculator here to check how much you can borrow.

Using a large mortgage for a development

If you hope to finance a property development, a regular mortgage wouldn’t be enough. This is because the development has not yet been built. Once your development is completely finished, then a remortgage is possible.

This is why development finance can be a suitable option for larger developments, such as a block of apartments. 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?

Do I need an advisor for a large mortgage?

If you need a high-value mortgage but don’t know where to start, speak to an advisor. Mortgage advisors can be crucial, especially for sizeable mortgage amounts. Your mortgage application will require careful planning to be approved. Assessing your income and deposit level before you approach a lender can save you time and money.

By speaking to a specialist, you can also ensure you’re getting the best deal available. Furthermore, our advisors can approach lenders best suited to your circumstances. By doing this, the chances of maximising your mortgage amount can improve.

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About the author

Mortgage Advisor | More Articles

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