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Banks and building societies are working harder to attract wealthier borrowers looking for £1 million+ mortgages.

Over the last few weeks, three players in the large mortgage loan space have made changes to attract more high-net-worth borrowers. 

Here is a summary of the changes:

10% deposit for £1.125 million mortgages with Metro Bank

Metro Bank for Intermediaries has increased the maximum loan size applicants can borrow if they have a 10% deposit from £675,000 to £1.125 million. For borrowers with 15% deposits, the maximum loan size has gone up significantly from £1m to £2m.

Many lenders limit the mortgage loan size for borrowers raising over £1m with smaller deposits, although Metro Bank has changed its rules to target this market. 

Santander's £1m+ mortgage changes

Santander has made some big improvements to its large mortgage loan proposition.  

• The maximum loan size on residential fixed products was increased from £1.5m to £3m for borrowers, providing they have a 25% deposit. 
• Santander increased the maximum loan size from £1m to £2m on residential fixed products providing borrowers have a 15% deposit.
• The bank has launched new 40% deposit two and five-year fixed rates with a £1,999 arrangement fee for mortgages between £3m and £5m.

Coutts Private Bank: New 25% deposit mortgage for Super Prime Properties 

Coutts has lowered the size of the deposit borrowers need to secure mortgages to buy in London's Prime postcodes.

The private bank, owned by NatWest, now requires borrowers to have a 25% deposit, rather than a 35% deposit, to buy in certain London Prime postcodes.

The mortgages are only for properties over £10m, excluding new builds and properties valued over £30m.  

Aaron Strutt, product director at Trinity Financial, says: "If you are seeking a large loan, it is well worth checking NatWest's mortgages, as they generally are not capped when borrowers have larger deposits.

"The price difference between lenders offering large and bespoke mortgages can be pretty substantial. It makes sense to ensure you are getting the most competitively priced rates.

"Prime mortgages can be complex, so you may want to discuss them with us. We’re happy to answer your questions."

Call Trinity Financial on 0808 1642174 to secure a larger mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Some of the UK's largest banks and building societies are issuing £1 million+ mortgages to help wealthier buyers purchase stunning homes in the UK's prime property postcodes.

The most expensive street in Britain is Buckingham Gate in Westminster, a stone’s throw from some of central London’s world-famous landmarks, including Buckingham Palace. The average property price is over £9.6 million, according to data from Rightmove.co.uk.

Vicarage Gate in Holland Park takes second place, with an average asking price of just over £6.3 million. Park Road in St John’s Wood, with an average cost of a home of around £5.8 million, comes in third place. This is again according to data from Rightmove.co.uk.

CLICK HERE TO VIEW OUT £1 MILLION+ BEST BUY TABLE.

If you are considering buying an expensive home and need a larger mortgage, there are many options for higher earners depending on the size of their deposit. Ideally, borrowers need a 10% deposit, a clear credit history, and an aim to borrow between four and five times their single or joint salary.

Lenders can provide finance to foreign nationals, those with multiple sources of income in different currencies, company directors and potentially to trusts.  

Aaron Strutt, product director at Trinity Financial, says: "Our brokers have access to a range of banks, building societies and private banks keen to issue £1 million+ mortgages to high net worth clients.

"Some banks like NatWest for Intermediaries do not really have a maximum loan size on their standard fixed rates, while others cap their loan sizes around £1.5 million. Private banks want to issue larger loans and ideally get borrowers to transfer banking or their investments in the future.

"It is surprising how many lenders offering the most competitively priced rates are keen to issue larger mortgages. There is competition between mortgage providers, although the prices of fixes and trackers rate, plus setup fees, vary quite substantially between the lenders. It pays to check you are getting a good deal."

The graph above: Most expensive streets in London.

Outside London, the graph above shows that the five most expensive streets are primarily found in the southern counties, with Old Avenue in Weybridge, Surrey, taking the top spot.

Source: Rightmove.co.uk

Call Trinity Financial on 0808 1642174 to secure a £1 million+ mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Home improvements can be expensive, particularly when structural work is planned. Rather than using money from savings or borrowing funds from family, many homeowners remortgage or take additional borrowing with their lender to pay for the work.

Over the years, Trinity Financial's brokers have helped borrowers refinance to raise the funds needed to make significant changes to properties, such as extensions and basement digs. We have also helped our clients secure funding to build home gyms and swimming pools and landscape their gardens. 

Banks and building societies are usually pretty happy to fund home improvements as they improve the property, potentially raising its value and decreasing their credit risk. However, some lenders will cap the amount they will lend existing borrowers regarding the loan-to-value and mortgage amount. This means borrowers remortgage to other lenders and assess their finances again. Either way, any additional capital raising will be subject to strict mortgage affordability calculations, which assess applicants' overall financial situation.

Many homeowners take additional borrowing with their lender or remortgage to raise funds for:

• Purchase of Land
• Loft conversions
• Extensions
• New kitchen or bathroom
• Conservatory
• New garage for classic cars
• Landscaping
• Swimming pool or home gyms
• Double glazing
• New roof

Aaron Strutt, product director at Trinity Financial, says: "If you are thinking about remortgaging to raise funding for home improvements, first check if you have early repayment changes on your existing mortgage and if your lender provides additional borrowing.

"Sometimes, the lenders offer additional borrowing rates that are much more expensive than your current deal. For many homeowners, waiting for the mortgage rate to finish and then applying for a remortgage makes sense. This means they do not have two separate rates."

What to consider before remortgaging to fund home improvements

Even though the price of materials and labour has increased in recent years, many people find making home improvements more cost-effective than buying a new property. However, seeing what properties are available in your local area makes sense just to ensure spending money on refurbishing makes sense. 

Many people remortgage to generate the finances needed for significant changes, such as an extension, basement dig, open-plan living extension, home gym, or swimming pool. Stamp duty is a significant barrier for many people who want to move.

The pros and cons of remortgaging for home improvements

There are upsides and downsides of remortgaging that you need to consider.

Pros:

• When you remortgage to another lender, you can typically fix your monthly repayments for two, three, five or ten years. However, the fixed-rate options may be restricted if you stick with your current lender and apply for additional borrowing.
• Early repayment charge-free products are available if you are considering selling your home although not through all banks and building societies. 
• There is plenty of choice or rates through banks and building societies.

Cons:

• By spreading the cost of home improvements over your mortgage term, you could pay back significantly more interest than with other finance options.
• Current mortgage affordability rules will apply. This means if the lender's calculations have changed or your income and expenses are higher, the additional borrowing or remortgage may not be affordable.
• You may be charged a mortgage-arrangement fee, valuation and legal fees.
• The application process can be longer if you need to get a schedule of work.
• If you want to remortgage before your current deal expires, you could be charged an expensive early repayment charge.

Lenders may ask for the schedule of works as evidence 

If you apply to borrow a relatively small amount to pay for a kitchen or bathroom, the lenders may not ask for evidence of costs. However, if you are planning to borrow a lot of money to make structural improvements, lenders may want to see builders' quotes detailing the costs and changes to the property. 

Some lenders reserve the right to request further details, including estimates and plans, and even hold back funds until the improvement work is completed if the amount being raised appears excessive or if the property may be vacated while the works are being completed. 

Call Trinity Financial on 0808 1642174 to secure a remortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

A range of banks and building societies offer flexible mortgages to borrowers without early repayment charges.

Most lenders offering mortgages without early repayment charges issue them as either Bank of England tracker rates or discounted variable deals. The vast majority of borrowers opt for two-, three- and five-year fixes, but these rates nearly always have fees to repay the mortgage early. 

Mortgages without exit fees tend to be popular with people unsure about their immediate plans. They may not want to lock into a product that will be expensive to get out of for a range of reasons. Maybe they are not getting on with their partner, or they want to move up the property ladder, carry out major renovation work, sell their home, or make lump sum overpayments.

Which lenders offer mortgages with no early repayment charges?

HSBC for Intermediaries, Barclays, TSB, Skipton Building Society and Nationwide for Intermediaries are some of the biggest lenders offering mortgages without early repayment charges.

Is it worth paying a standard variable rate for the flexibility?

Once a fixed or tracker mortgage rate ends, it usually reverts to the lender's standard variable rate. These reversion rates do not typically have charges for repaying the mortgage, but the rates are generally high. For example, Halifax’s current standard variable rate is 8.74%, and Nationwide Building Society’s is 7.99%.

If you are unsure whether you should be taking a fixed deal and plan to take your lender's standard variable rate, then it is worth noting there are competitively priced flexible mortgages available. It may make sense to remortgage away from your existing lender if it does not offer variable rates or low early repayment fee options.

What is the benefit of taking a mortgage with no early repayment charges?

Mortgages without tie-ins give borrowers flexibility. They allow homeowners to sell their property, refinance to raise funds for home improvements or switch to more suitable products when they are available. It also always people to make lump overpayments without being capped at the standard 10% limit. 

Aaron Strutt, product director at Trinity Financial, says: "Many borrowers tend to opt for the cheapest mortgage without considering all of their options or talking through their decisions with their partner or family. They also do not thoroughly research the market to ensure they get the most suitable deal.

"Flexible mortgages are not suitable for everyone, but they are an option more borrowers should consider. Some lenders offer switch-to-fix facilities where it is possible to take a tracker rate and then lock into a fixed deal, which provides more flexibility with the option of payment security."

How much is a typical early repayment charge?

Charges vary from lender to lender. It tends to be the tracker rate mortgages which do not have exit fees.

Barclay recently lowered the percentage it charges borrowers when they repay their mortgages early. This is something that does happen very often.

Nationwide charges 5% of the loan amount for the first two years on its five-year fixes and 7% of the loan amount of its ten-year fixes, although they reduce every year. In comparison, Barclays charges 2% of the loan amount on its five-year fixes and flat 5% exit fees on its ten-year fixes.

Do lenders offer existing borrowers trackers without early repayment charge products?

Many banks and building societies do not offer existing customer mortgages without early repayment charges apart from the standard variable rate.

Lenders tend to have different rates for new customers buying a home or remortgaging or existing customers coming to the end of their deal. 

Just because a lender is not offering its customer a tracker or flexible mortgage without tie-ins does not mean they aren't available through other banks or building societies.

Are there flexible or offset mortgages?

Accord Mortgages, Barclays, Clydesdale, Coventry for Intermediaries, Coutts and Handelsbanken are some of the biggest players in the flexible and offset mortgage market. 

Offset mortgages allow borrowers to make lump sum overpayments and take the funds out again. This means the amount of interest they pay is reduced.  

Some offset mortgage lenders allow customers to repay 99% of the mortgage without charge.

Call Trinity Financial on 0808 1642174 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

Mortgage lenders have been pretty quiet over the last few weeks and there have not been as many rate changes as usual.

HSBC has trimmed rates on several residential and buy-to-let mortgage deals for borrowers with a 40% deposit. The largest price improvement was HSBC's two-year fix for new customers making a residential purchase, which was reduced by 0.11%.

HSBC's five-year fix, available to borrowers with a 40% deposit and new customers making residential purchases, has been cut by 0.4% to just below 4.25%. It has a £999 arrangement fee and is available for mortgages, often between £100,000 and £5 million.

Halifax for Intermediaries has announced that it will lower some mortgage rates but increase others with effect from tomorrow, April 11th, 2024. 

Barclays is one of the big lenders offering competitively priced mortgages

Barclays recently increased some of its mortgage rates but still offers some of the most competitively priced two—and five-year fixes, although with MPowered Mortgages, NatWest, and Santander.

For borrowers with 40% deposits, Barclay's two-year fixed rate is priced at just over 4.5%, and its lowest five-year fix is below 4.20%. The three-year fixed rate is priced below 4.35%.

Aaron Strutt, product director at Trinity Financial, says: "We went through a period where the lenders were increasing their rates, although there have not been as many changes over the last week. We are still expecting rates to edge down over the coming months, but this is subject to inflation levels.  

"We are speaking to more first-time buyers keen to get on the property ladder and get out of renting, especially with average rents set to jump 13% over the next three years, according to the Resolution Foundation."

Call Trinity Financial on 0808 1642174 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

The number of agreed sales for detached houses is currently 17% higher than at this time last year, while smaller flats lag behind at +6%. This is according to data from Rightmove.

New data reveals that Chard, a town in Somerset, is the new sales hotspot, with the number of sales agreed more than doubling (+123%) compared to this time last year. Second on the list of new sales hotspots is Hilton, in Derby, with an 112% increase in agreed sales compared to last year, and Padgate in Warrington is third (+112%).

Rightmove’s figures state that across Great Britain, the number of sales being agreed is currently 13% higher than at this time last year. The report says, “This growth is primarily being driven by sales of detached houses, which have seen the biggest resurgence compared to last year.

“The number of agreed sales for detached houses is currently 17% higher than at this time last year, while smaller flats lag behind at +6%.”

Source: Rightmove figures March 20, 2024

Rightmove’s property expert Tim Bannister said: “For a long period during the pandemic and into last year, there was very little availability of larger homes. With not much choice of property to move to, this deterred some larger-home sellers from coming to market. Last year, movers had to adjust from historic low mortgage rates to much higher levels.

“Whilst some larger-home sellers may have built up more equity over time, others looking to take out a larger mortgage on a more expensive home would have been particularly impacted. Now, rates have come down from their peak, whilst prices have remained stable, and we have a group of larger home sellers who are seizing the opportunity to come to market. The increased choice is being met with more demand, resulting in higher numbers of sales.”

Mortgages for detached properties

Banks and building societies tend to prefer issuing mortgages on houses when borrowers have smaller deposits, although the market is easing and lenders are providing lower deposit mortgages for flats. Santander was the last big bank to make changes to its acceptance criteria. 

Over the last few weeks, mortgage rates have become more expensive, although they are still reasonably priced. Two-year fixes are priced around 4.5% and five-year fixes start from 4.25%.  

Source: Rightmove press release

Call Trinity Financial on 0808 1642174 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage