There are a number of high street mortgage lenders offering large mortgage loans at fantastically low rates.
If you are looking to raise £1 million to purchase a property or remortgage, Trinity Financial has access to a lender offering a two-year fix at 1.27%. The overall cost for comparison is 4.3% APRC.
The monthly payments on an interest-only basis would be £1,058 and £3,892 on full capital repayment over a 25-year term. The mortgage has a £995 arrangement fee, and you would need to put down a 40% deposit. The sale of the property can be used as the repayment vehicle.
NatWest for Intermediaries is also offering a leading five-year fix at 1.54% and it is available for larger mortgage loans. The overall cost for comparison is 3.3% APR. Trinity's broker has access to NatWest's specialist case managers to agree on mortgages over £750,000.
If you were to borrow £1 million on the five-year fix, the monthly repayments on a capital repayment basis would be £3,470 over a 30-year term. This mortgage is available on interest-only, and borrowers would need a 40% deposit to access the rate. Part interest and part capital repayment mortgages are available to reduce the monthly repayments.
Both mortgages will revert on to the lenders current standard variable rate of 3.99%.
For help to secure a large mortgage loan call Trinity on 020 7016 0790 or complete our mortgage questionnaire.
You can also view some of the mortgages we have arranged over the last 10 years by clicking here.
There is a selection of banks and building societies providing £1 million+ buy-to-let mortgages at incredibly low rates.
NatWest for Intermediaries is offering one of the cheapest two-year fixed rate buy-to-let mortgages. It is priced at 1.53%, has a £995 arrangement fee and the maximum loan size is £2 million.
After the fixed-rate period, the mortgage reverts to the lenders 4.74% standard variable rate and the APRC is 4.7%. As the mortgage is available on interest-only, the monthly payment on a £1 million mortgage would be £1,275 per month.
Trinity Financial has direct access to NatWest's decision-makers and has a track record of accessing large mortgage loans.
The margin between the cheapest buy-to-let and residential mortgages is reducing as the lenders continue to tempt landlords to purchase more properties or remortgage.
There are at least 47 banks and building societies providing interest-only mortgages, and many of these lenders offer £1 million+ interest-only rates.
Barclays for Intermediaries, Clydesdale Bank, Halifax, HSBC and Metro Bank are some of the biggest banks to provide interest-only mortgages, while smaller lenders like the Teachers Building Society regularly offer terms.
If you are looking to keep your monthly payments low and have a plan to repay the outstanding mortgage balance, then interest-only can be a useful alternative to full capital repayment.
The lenders are trying to attract borrowers, and they have eased their acceptance criteria, so there are more interest-only options available at any time since the credit crunch.
Mortgage rates are usually the same, and there is not generally a premium to pay. Some lenders provide cheaper rates to clients looking for larger mortgage loans on interest-only.
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/
The high street banks and building societies will not ask for assets to be transferred to them as part of a mortgage transaction.
Even if you are looking for a £5 million mortgage, the transaction will be based on your income and outgoings, basing the application on your affordability to determine the amount you can borrow.
Private banks tend to have a minimum loan size of £1 million, and many of them request for assets to be transferred upfront. Trinity Financial has access to a host of private banks that do not require assets upfront, although they may well contact you in the future to discuss how they can help get you better returns.
Data from the Q3 2019 bridging report produced by MT Finance shows this is the third successive quarter that investment property purchases took the top spot for 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.
There is still uncertainty in the London property market, with prices dropping in many boroughs. This has prompted many property investors and motivated buyers to utilise the speed of bridging loans to act quickly on opportunities.
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.
Trinity's brokers have access to a range of lenders offering £1 million+ mortgages and each bank or building society will use different affordability calculations to work out the maximum loan.
Most lenders have a maximum income multiple for larger loans of between four and five times salary single and joint applicants - but some will lend up to 5.5 times single or joint incomes.
A very limited number of providers offer up to six times salary mortgages providing applicants have a limited amount of personal debt.
Many of the banks and buildings are still offering larger mortgage loans to borrowers whether they are purchasing a property or remortgaging.
Some of the more generous banks have temporarily capped the maximum property values they will accept at £3 million and this limit is likely to be due to their liability insurance restrictions.
The property value cap was introduced while the lenders worked out how to rely on their automated property valuation systems to work out how much properties are worth. They have been almost totally reliant on these systems while their valuers cannot physically inspect properties to confirm their value.
Some of the biggest lenders offering the cheapest £1 million+ mortgages are underwriting and agreeing applications that do not qualify for an automated property valuation. The production of a mortgage offer will be subject to their valuer viewing the property once they return to work.
Over the last few weeks, the lenders have not increased the price of their larger mortgage loans especially for wealthier clients with larger deposits. Some of the cheapest residential rates are priced around 1.2%.
• 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 we assess your mortgage and financial protection needs based on your monthly
• We collect the information and documentation that the lenders and providers will need.
• Based on the information supplied, we provide you with illustrations for the most suitable products for your
• 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
• Post-completion we are available for any questions. When you reach the end of your initial product, we are
also able to discuss any further mortgage, will or financial protection product requirements.
As part of our ongoing service commitment - we will contact your at least three months before your fixed or tracker rate expires to ensure you avoid reverting onto an expensive standard variable rate.