Best buy £1 million buy-to-let mortgages available
Page updated 18/04/2024.
A selection of banks and building societies offer £1 million buy-to-let mortgages to landlords who are purchasing properties or remortgaging.
Some of the biggest lenders offering £1 million buy-to-let mortgages include Barclays for Intermediaries, BM Solutions, Santander, HSBC for Intermediaries and The Mortgage Works. Private banks and specialist providers are also keen to lend to landlords seeking larger buy-to-let loans.
From a broker's point of view, securing a £1 million buy-to-let mortgage for clients typically involves several factors, including assessing their financial situation, the rental potential of the property, the size of any property portfolio they own and their deposit.
Rental stress tests play a large part in determining the maximum loan size, although experienced landlords with property portfolios may be able to restructure their debt to make transactions work if the rent is not sufficent. Some lenders also allow employed or self-employed income to boost the maximum loan size using "top slicing."
How much are £1 million buy-to-let mortgages?
Some of the most competitively priced larger buy-to-let mortgages are not much more expensive than the residential mortgage rates. However, the lowest-priced buy-to-let deals tend to have higher setup fees.
BM Solutions currently offers sub-4.5% two—and five-year fixes with £3,999 arrangement fees for landlords with 35% deposits. The Mortgage Works' lowest rate is just below 3.70%, but it has a 3% arrangement fee. NatWest for Intermediaries offers a five-year fix priced at just over 4.20%, and it has a £995 arrangement fee. Again, these rates are available to borrowers looking for bigger mortgages, provided they have large deposits.
Aaron Strutt, product director at Trinity Financial, says: "Mortgage lenders are keen to issue buy-to-let mortgages although some cap the maximum loan. BM Solutions offers £1 million mortgages, and NatWest for Intermediaries offers £2 million mortgages.
"Private banks also offer larger mortgage loans to landlords. We deal with many of the building societies, and the size of the mortgages these lenders issue is quite surprising."
Here's a large buy-to-let mortgage criteria overview:
Deposit: Lenders usually require a significant deposit for buy-to-let mortgages, often around 25% to 40% of the property's value. For a £1 million property, this would mean a deposit of £250,000 to £400,000. If you own other buy-to-let properties, it may be possible to refinance to generate a larger deposit.
Rental Income: Lenders will assess the property's potential rental income to ensure it covers the mortgage payments. They often require the rent to be around 125% to 145% of the mortgage payments although higher stress test rates typically apply. They may also use personal income to increase the maximum loan size if the property does not generate enough rent.
Affordability: Your financial situation will also be assessed when securing larger buy-to-let mortgages, so you may need to have a minimum income to qualify. Especially if the rental income doesn't cover the entire mortgage. Some lenders are now asking for evidence landlords have savings to cover any rental voids.
Credit History: A good credit history is crucial for obtaining a large mortgage, so missed mortgage payments, missed credit card payments or CCJs for things like parking tickets can be very costly. Lenders will assess your credit score and history to determine your eligibility and interest rate.
Lender Criteria: Different lenders have varying criteria for buy-to-let mortgages, so it's essential to shop around and compare offers from different lenders. Some lenders cap the amount of properties a landlord can have.
Additional Costs: Remember to account for additional costs such as property maintenance, landlord and rent cover insurance, taxes, and potential void periods where the property is unoccupied. There are also costs to setup limited company buy-to-let mortgages.
Given the size of the mortgage you're considering, it's advisable to consult with a mortgage adviser who specialises in buy-to-let mortgages. Trinity Financial's experts personalise advice based on your financial situation and investment goals to help you secure a £1 million buy-to-let mortgage.
Call Trinity Financial on 020 7016 0790 to secure a £1 million buy-to-let 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
There is a selection of banks and building societies providing £1 million+ buy-to-let mortgages.
BM Solutions, previously known as Birmingham Midshires, offers one of the cheapest two-year fixed-rate buy-to-let mortgages. It is priced at 4.48%, has a £3,999 arrangement fee, and has a maximum loan size of £1 million. Applicants will need a 35% deposit to qualify.
After the fixed-rate period, the mortgage reverts to the lender's 8.59% standard variable rate, and the APRC is 6.7%. The mortgage is available on interest-only, and the monthly payment on a £1 million mortgage would be £3,733.33 per month. It would rise to £5,054.98 on full capital repayment over 30 years.
Trinity Financial's brokers have access to the key decision-makers and BM Solutions, and they can get mortgages agreed promptly.
The buy-to-let mortgage market has changed over the last year, but mortgage rates are decreasing.
Mortgage lenders calculate the maximum lending amount using a property's rental income. More lenders allow landlords to borrow more using any income they earn.
The Financial Conduct Authority does not regulate most Buy to Let Mortgages
Trinity Financial specialises in arranging £1 million+ mortgages and our team of expert advisers do everything possible to secure the cheapest rates and the fastest mortgage offers.
More of the lenders have set up specialist lending teams to agree larger mortgage loans, and they have separate processing teams to underwrite applications.
We regularly work with clients over the phone to discuss applications and confirm the documentation we will require, and we also have Mayfair based offices where we meet clients.
Click on the link to view some of the mortgages we have arranged over the last ten years. https://www.trinityfinancialgroup.co.uk/case-studies/
Some lenders can use an applicant’s personal income as well as the rent to provide larger mortgage loans. This is useful for landlords when their property does not enough rent to qualify for a sufficient mortgage.
Trinity Financial has access to a host of banks including Barclays for Intermediaries and Metro Bank to secure more generous mortgages for those with larger incomes.
The banks use ‘top-slicing’ to assess personal incomes along with the rent to boost the loan sizes. The application has a larger chance of going through if you have lower credit commitments and monthly outgoings.
• You contact one of our consultants by calling 020 7016 0790 or complete our basic enquiry form or mortgage questionnaire for a more detailed initial response.
• You tell us what you are looking for and the property type you want to buy. We assess your mortgage and financial protection needs based on your monthly budget.
• We collect the information and documentation the lenders and providers need.
• Based on the information supplied, we provide you with illustrations of the most suitable products for your circumstances.
• We then submit the application on your behalf to secure a mortgage offer as quickly as possible. This is once you have confirmed you are happy to proceed.
• We manage the application through to completion and liaise between all involved parties, such as valuers, estate agents and solicitors.
• Post-completion, we are available for any questions. When you reach the end of your initial product, we can also discuss any further mortgage, will or financial protection product requirements.
As part of our ongoing service commitment - we will contact you at least three months before your fixed or tracker rate expires to ensure you avoid reverting to an expensive, standard variable rate.
Data from the bridging report produced by MT Finance showed investment property purchases took the top spot for the most popular uses of bridging loans with 22% of the transactions.
The second-placed purpose was for traditional chain breaking, taking 20% of the share. 15% of loans were taken out for heavy property refurbishments, while 7% were to purchase auction properties and 6% for general business purposes.
What are the best bridging loan rates?
Bridging loans enable borrowers to purchase properties when they cannot access a mortgage or wait for the sale of a property to go through to free up funds. Every lender will want to know what your exit route is and how the bridging loan will be repaid.
Trinity Financial has access to one of the biggest lenders in the bridging market, and it recently launched a 0.48% per month rate up to 50% loan-to-value. It has a 2% completion fee, and it is available for loans between £75,000 and £15,000,000. The price gets marginally more expensive if you have a smaller deposit.
We also have access to a private bank offering £1 million+ bridging loans and the rate is typically 2% over the Bank of England base rate. It has a 1% arrangement fee and no exit fees. The lender also calculates interest daily and can do higher loan-to-values. For many larger transactions, this product is hard to beat.
Click here to visit our sister company Trinity Specialist Finance.
Commercial Mortgages are referred to a third party. Neither Trinity Financial nor PRIMIS are responsible for the service received. These services are not regulated by the Financial Conduct Authority and may have limited consumer protection.
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