Lenders providing larger mortgages helping to fund the rise in London’s record £5 million-plus property sales

by Aaron Strutt

Jan 21 2022

Research from Savills estate agents shows London’s super-prime £5 million+ residential market recorded its strongest year since 2013.  

According to Savills shows there were 522 super prime sales in 2021 of homes valued at £5 million or more, just under the 533 total for 2013.

In Q4 alone, there were 163 transactions, which is +37.0% higher than Q3 2021 and the second-highest quarterly figure ever recorded, only beaten by Q2 2014 when there were 166 transactions. The last three months of the year saw the highest property spend on properties of £5 million or more since Savills records began worth almost £2 billion.

There was a rise in the number of £10 million-plus transactions in Q4 - the strongest quarter ever with 62 sales compared to a previous high of 50 in Q4 2014. This was when many rushed to buy before new higher stamp duty tax bands were introduced. 

Is it possible to get a £5 million mortgage? 

Mortgage lenders offer wealthier borrowers buying prime properties some of their most competitively priced fixed and tracker rates.   

Trinity Financial’s brokers have access to lenders offering sub-1.5% two-year fixes and sub-1.75% fixes with £999 arrangement fees. Private banks provide larger mortgage loans, but the rates and arrangement fees tend to be between 0.5% and 1%. 

Many wealthier borrowers take interest-only or part interest-only mortgages to reduce their monthly payments freeing up their income for other investment opportunities.  

Increase in international buyers 

Savills research shows a significant uptick in the number of international buyers returning to the capital, with London hotspots continuing to dominate sales.

More than half of all £5 million-plus sales took place in Kensington, Chelsea, Belgravia, Notting Hill and Knightsbridge. 

The estate agent highlights a rise in the number of properties worth £5 million-plus across London as buyers race for more space, with locations such as Wimbledon, Battersea, East Sheen and Wandsworth firmly on the super-prime map. 

There was an 84% increase in the number of £5 million-plus sales across southwest London in 2021, compared to 2020. 

Call Trinity Financial on 020 7016 0790 to secure a large mortgage or book a consultation