Mortgages over £1 million

Million pound mortgages

Arranging a million-pound mortgage can require more planning than a standard home loan to ensure you secure the most competitively priced mortgage to reduce interest costs while obtaining a sufficiently large mortgage.

When borrowers need a mortgage of £1 million or more, lenders usually conduct a more detailed assessment of income, affordability, assets, credit profile, property type, and repayment strategy.

Trinity Financial’s large-loan mortgage brokers consistently arrange £1 million-plus mortgages for clients buying, remortgaging or refinancing high-value homes in London, the South East and across the UK.

Our clients often include high earners, business owners, entrepreneurs, private equity professionals, investment bankers, lawyers, doctors, consultants, company directors, landlords, international clients and high-net-worth borrowers.

Many £1 million mortgage applicants have complex income. This may include salary, bonuses, commission, dividends, partnership income, retained company profit, carried interest, RSUs, rental income, investment income or foreign currency earnings. The right lender can make a major difference to the amount available.

Why get a million-pound mortgage?

A million-pound mortgage is a residential mortgage for which the borrower must raise £1,000,000 or more. At this high-value level, banks and building societies make a much closer assessment of income sustainability, credit profile, liquidity and property type and condition. Although the lenders are keen to issue more million-pound mortgages. 

These mortgages are often used to buy or refinance higher-value properties, particularly in London, the Home Counties and prime UK locations. While many mainstream banks offer £1 million mortgages, not every lender has the same appetite for large loans.

Some lenders offer their most competitive rates to borrowers with larger deposits and strong income. Others may be more flexible with interest-only, bonus income, self-employed income, foreign currency income or larger loan sizes.

Because the borrowing is higher, lenders usually want a clearer picture of the borrower’s income, spending, assets, liabilities and long-term affordability.

Our clients typically fall into one of the following categories. 

• They’re planning to buy with a £1m+ mortgage for a high-value property

• Their income is complex, including bonuses, dividends or self-employed earnings

• They are purchasing in London or prime UK locations 

• They require discrete, trustworthy advice from expert mortgage advisers

How are million pound mortgages assessed?

Lenders assess £1 million mortgages more closely than smaller home loans. They want to know the mortgage is affordable now and remains sustainable if interest rates rise or income changes.

A lender may review:

• Basic salary and employment history
• Bonus, commission or carried interest income
• Dividends, net profit or retained company profit
• Partnership income
• Self-employed accounts and tax calculations
• Bank statements and spending patterns
• Credit commitments, loans and school fees
• Assets, savings and investments
• Property type, location and valuation
• Repayment strategy for interest-only borrowing

The right lender depends on the borrower’s income profile. One bank may ignore a large bonus or retained profit, while another may use it to support a larger mortgage.

How much income do you need for a £1 million mortgage?

Some lenders use income multiples of around 4.5 to 5 times income. Based on this, borrowers may need household income of around £200,000 to £225,000 to secure a £1 million mortgage.

However, some lenders offer higher income multiples for professionals, higher earners or clients with larger deposits. Certain banks may lend 5.5 or 6, and even 6.5 times income where the case fits their criteria.

Private banks may take a more bespoke view, looking at income, assets, liquidity and wider wealth rather than relying only on a standard affordability model.

How much deposit do you need for a £1 million mortgage?

The cheapest £1 million mortgage rates are usually available to borrowers with larger deposits or more equity.

Many of the lowest fixed and tracker rates are offered at 60% loan-to-value, meaning the borrower has a 40% deposit or equity stake. Some lenders can consider £1 million mortgages with a 10% or 15% deposit, but the rate may be higher and the choice of lenders more limited.

A larger deposit usually gives borrowers access to better pricing, more lenders and more flexible underwriting.

Mortgage lender options for high-value borrowing

Many high-street banks, building societies, specialist lenders and private banks offer mortgages over £1 million.

Lenders that may be useful include HSBC for Intermediaries, Barclays for Intermediaries, Santander for Intermediaries, Halifax for Intermediaries, plus Coutts, Investec, Barclays Private Bank, Lloyds Private Bank and other private banks.

The best lender depends on the case. A mainstream lender may be cheapest for straightforward employed borrowers. A building society may be useful for more flexible criteria. A private bank may be better for complex income, foreign income, interest-only or very large loans.

High-street banks for £1 million mortgages

High-street banks can be very competitive for £1 million-plus mortgages, especially where the borrower has high income, a clean credit profile and a larger deposit.

Banks such as HSBC, Barclays, Santander, NatWest, Halifax and Nationwide can offer competitive fixed and tracker rates. Some also have large-loan teams or enhanced affordability for higher earners.

For borrowers who fit standard criteria, a high-street bank may be cheaper than a private bank.

Private bank mortgages over £1 million

Private banks can be useful for high-net-worth borrowers who need bespoke underwriting.

Coutts, Investec, Barclays Private Bank, Lloyds Private Bank, and other private banks may be suitable for clients with complex income, large interest-only requirements, foreign-currency earnings, investment wealth, business assets, or unusual repayment strategies.

Private banks are not always cheaper, but they may offer more flexibility when a client’s finances do not fit a standard lender’s criteria.