Things to consider when getting a £1.5 million or £2.5 million mortgage for higher earners buying with a partner

by Aaron Strutt

Oct 10 2023

Page edited and updated 06/02/2024.

Trinity Financial has access to a range of lenders offering £1.5 million and £2.5 million mortgages to help borrowers purchase prime properties in London, Surrey and increasingly across the UK.

In recent months, £1.5 million+ mortgage rates have come down, and there are larger loans on two-year fixes priced around 4.25% and five-year fixes below 4%.

More banks and building societies are offering mortgage rates specifically targeting higher earners requiring more generous loan sizes, interest-only or mortgages with overpayment facilities. 

Halifax for Intermediaries is offering up to 5.5 times salary mortgages and competitively priced mortgages for those borrowing between £1 million and £5 million

Here are some key steps and considerations to make securing a larger mortgage loan easier:

Assess your financial situation:

Lenders will want to understand your finances and creditworthiness. You will need your payslips, proof of bonuses and up-to-date accounts if you are self-employed or running a limited company. Check if you know your exact income from all sources, your savings balances, and debt levels. 

Determine your maximum property price:

Decide your budget and how much you're willing to spend on a house or flat, and consider how much it will cost if it needs work. The costs of refurbishing properties have increased significantly in recent years. Remember, you will need a minimum deposit of 5%, although ideally, you have closer to a 20% deposit to access attractive rates.

There are ways to structure mortgages to make the monthly repayments more manageable, such as interest only, offset mortgages if you have savings, and longer mortgage terms, while sourcing the most competitively priced rate is key.

Joint income mortgages:

If you're buying with a partner, assess their financial situation. Joint applications will involve both your credit histories and income. It is well worth running credit reports before applying for a mortgage to ensure you and your partner do not have any missed payments or CCJs.

Generally, it is possible to borrow around five times single and joint salaries, although credit card debt, loans, cars on finance and children will reduce how much you can borrow.

Deposit required for a £1.5 million+ or £2.5 million+ mortgage:

Banks and building societies tend to offer their most competitively priced rates to those with a 40 per cent deposit. However, getting £1.5 million+ or £2.5 million+ mortgages is possible if you have a 10 per cent deposit.    

Trinity Financial has access to private banks offering lower deposit mortgages to higher earners with smaller deposits.

Choose the right mortgage product:

Most lenders offer fixed-rate, variable-rate or interest-only mortgages. Each has its advantages and disadvantages. Many of our clients take tracker rates or two-year fixes, although the lowest rates are five-year fixes. Consider which one aligns best with your financial goals. Click here to view our £1 million+ mortgage compassion table.

Lender selection for larger mortgage loans:

There is a range of lenders offering larger mortgages. Traditional banks, building societies, private banks, and specialized lenders have different criteria and interest rates. More lenders are offering £1 million+ mortgages at competitively priced rates. More standard lenders typically have lower rates and setup fees than private banks.

Prove your income:

You and your partner will need to provide documentation of your income and employment history.  Lenders will want to check your ability to make repayments.

Credit history:

Ensure that both you and your partner have strong credit histories. Lenders will assess your credit scores to determine the terms of the mortgage. If you fail an application, then there are lenders that credit search rather than credit score, meaning they are potentially more lenient.

Property appraisal:

Banks and building societies will typically require a professional appraisal of the property to confirm its value. However, many lenders use automated valuations where they rely on computer-based systems to do a "desktop valuation". They often provide a free property valuation; a copy of the valuation report is not sent to the buyers.

To ensure the property is in good condition, you could conduct structural and electrical surveys to highlight severe structural issues. 

Large mortgage loan affordability:

Lenders assess not only your income but also your affordability. Your monthly mortgage payments should be sustainable alongside your other financial commitments. Banks and building societies provide income multiples of between four and six times salary. 

Legal fees and Stamp Duty:

Budget for legal fees, surveys, and other costs associated with the property purchase. Trinity Financial has been working with Steph Lyke from SAS Daniels, and she is an expert in her field. 

Stamp duty on expensive can be exceptionally high - especially if you own another property as an enhanced payment is charged. Click here to use our stamp duty calculator. 

Maintain financial stability:

Maintain financial stability throughout the application process and after securing the mortgage to ensure you can meet your monthly payments. It is advisable to apply for credit cards, loans or finance while your mortgage application goes through, as it can directly affect your mortgage.

Obtaining a high-value mortgage in London is a complex process, and working with professionals who specialize in this area is important if you want the best deal. Consult with mortgage brokers, financial advisors, and legal experts to guide you through the process and ensure you make informed decisions that align with your financial goals and circumstances.

Building and Income Protection Insurance:

Consider insurance options, such as life insurance and critical illness cover, to protect your investment and your family's financial well-being. Trinity Financial has a dedicated insurance specialist who arranges a variety of income protection policies. 

Call Trinity Financial on 020 7016 0790 to secure a mortgage, complete our mortgage questionnaire or book a consultation 

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