TSB offering large mortgage loans up to £5 million
TSB is offering some of the largest mortgage loans available across the high street banks and building societies.
If you are looking to purchase a property and secure a mortgage between £1 million and £5 million, TSB has a particularly low tracker rate priced at 2.39%.
It tracks the Bank of England base rate plus a margin of 1.89% until April 30, 2017.
Borrowers will require a 40% deposit to access this mortgage and it has a £1,995 arrangement fee. Also, it has an APR of 3.8%.
The rate will increase by 0.2% if you have a 30% deposit.
More competition across the mortgage market
TSB recently launched into the broker market and it is planning to lend more money in order to increase its 1.4% market share.
Aaron Strutt, product manager at Trinity Financial, says: “Some lenders are offering incredibly low million plus mortgages and more of them are priced around 2%.
“In order to qualify for a large mortgage TSB will assess affordability in the same way as a standard loan.
“They will want to make secure borrowers have a clean credit history and they have a track record of receiving their income.”
Monthly payments
If you wanted to borrow £3 million to purchase a property, the monthly repayments would be £5,975 on interest-only and £13,292.91 on full capital repayment. This is over a 25-year term.
For a £5 million mortgage, the monthly repayments would increase to £9,958.33 on interest-only and £22,154.86 on full capital repayment. This is also over a 25-year term.
After the tracker rate period the rates will revert to the lenders standard variable rate, currently 3.99%.
If you would like help to secure a large mortgage loan, call Trinity on 020 7016 0790.
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