How much does a £1 million pound mortgage cost?
Page edited and updated 10/04/2024.
Mortgage lenders currently offer £1 million+ rates to wealthier clients priced from 4.16%, although most rates are closer to 4.5%.
High-value mortgages are typically classified as those over £1 million. At Trinity Financial, we consistently arrange mortgages between £1 million and £5 million for those buying homes in the UK's most affluent areas and Prime Postcodes.
Here we explain how much larger fixed and tracker mortgage loans cost:
How much does a £1 million Bank of England tracker mortgage cost?
One leading bank offers a two-year Bank of England tracker at 5.39% available for larger loans, which is 0.14% above the Bank of England base rate. The mortgage has a £999 arrangement fee, and you would need to put down a 40% deposit to qualify. The rates are not much more expensive if you have a smaller deposit.
The monthly payments on a £1 million mortgage with this 5.39% rate would currently be £4,491.67 on an interest-only basis, rising to £5,609.07 on full capital repayment over a 30-year term.
The overall cost for comparison is 8.4% APRC, and after two years, the rate reverts to the lender's current 8.74% standard variable rate. The maximum loan size is £2 million.
Should you take a two or five-year fixed £1 million+ mortgage?
Aaron Strutt, product director at Trinity Financial, says, "Mortgage lenders have not been making as many rate changes recently, but they have gone up. Halifax and HSBC have just lowered their rates, and lenders have lowered their deposit requirements for larger mortgages.
"More of our clients are taking shorter-term deals and there is an expectation rates will get cheaper over the near term. The price difference between two and five-year fixes has closed, but the five-year fixes are still cheaper."
What about the monthly cost of £1 million two-year fixed-rate mortgages?
Santander for Intermediaries has a two-year fix at 4.65%, which is more expensive than it was two months ago. This rate is available for larger mortgage loans up to £3 million and borrowers purchasing a property. The overall cost for comparison is 7.1% APRC. The fixed rate is 0.05% more expensive for remortgages.
If you borrowed £1 million on the 4.65% two-year fix, the monthly interest-only cost would be £3,875, increasing to £5,516 on capital repayment over a 30-year term.
This mortgage is available on interest-only, and borrowers need a 40% deposit to access the rate. Santander's mortgage will revert to a standard variable rate of 7.5%, and early repayment charges apply.
What about the repayments on the £1 million five-year fixed-rate mortgages?
Barclays for Intermediaries also offers a five-year fix at 4.16%, which is available for larger mortgage loans up to £2 million. The overall cost for comparison is 7% APRC.
If you borrowed £1 million on the 4.16% five-year fix, the monthly cost on interest-only would be £3,466.67 increasing to £4,866.85 on capital repayment over a 30-year term.
This mortgage is available on capital repayment or interest-only, and borrowers need a 40% deposit to access the rate. This will revert to Barlcays standard variable rate of 8.74%, and early repayment charges apply. There is a £699 arrangement fee.
Access to the £1 million+ mortgage decision-makers
Trinity's brokers have access to specialist case managers at high street lenders and private banks, agreeing to large mortgages quickly and efficiently.
They can provide either full interest-only or part-interest and part-capital repayment mortgages to help borrowers reduce their monthly repayments while paying some of the outstanding balance each month.
Larger loans with income stretches
It is possible to arrange £1 million+ mortgages for borrowers using five, 5.5 times salary income multiples, or a few lenders even offer six times salary mortgages. We also negotiate £1 million+ larger mortgage loans for clients, providing they have a 10% deposit.
Trinity's brokers have access to 25% deposit interest-only mortgages using the sale of the property as the repayment vehicle. This is available to wealthier borrowers earning over £300,000.
Which lenders are best for £1 million+ mortgages?
The type of lender we approach on behalf of our clients depends on their financial situation and the size of their deposit. If they are employed or running their own company, and their income is relatively straightforward, we approach the big lenders keen to offer larger mortgage loans.
If borrowers have more complex situations and smaller deposits, we approach niche lenders and private banks. Smaller building societies often have strong appetites to lend, and private banks also target asset-rich or cash-poor applicants.
Many of the biggest banks and building societies, such as HSBC Premier, Nationwide for Intermediares, Santander, and Halifax for Intermediares, offer large loans—often as big as £2 million, £5 million, and even £10 million.
We have access to lenders accepting more complex income sources for £1 million+ mortgages, including:
- Vested stock bonuses and RSU income
- Stock portfolios (onshore and offshore)
- Income from royalties and trusts
- Global assets
- Income from different companies
- Property portfolio income
Is there a £1 million+ mortgage best buy table?
View Trinity's large mortgage loan best buy table and borrowing calculators.
Call Trinity Financial on 020 7016 0790 to secure a large mortgage loan, 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
NatWest for Intermediaries offers a five-year fix at 4.19% for £1 million mortgages. There is a £1,495 arrangement fee and the overall cost for comparison is 6.6% APRC.
If you borrowed £1 million on the 4.19% five-year fix, the monthly repayments on interest-only would be £3,491.67 increasing to £4,884.34 on capital repayment over a 30-year term.
This mortgage is available on capital repayment or interest-only, and borrowers need a 40% deposit to access the rate. This will also revert to NatWest's standard variable rate of 8.24%, and early repayment charges apply.
Click here to view our latest large loan best buy table: https://www.trinityfinancialgroup.co.uk/mortgage-tools/million-pound-mortgage-best-buys/
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
Interest-only can be a valuable alternative to full capital repayment if you want to keep your monthly mortgage payments low.
At least 50 banks and building societies provide interest-only, and many of these lenders offer £1 million+ interest-only mortgages.
The lenders are keen to attract wealthy borrowers, so more interest-only options are available with the sale of the property as the repayment vehicle.
There is not generally a premium to pay for interest-only, so the rates are the same as the capital repayment 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/
Trinity Financial's mortgage brokers have access to a range of lenders offering £1 million+ mortgages with generous income multiples.
Each bank or building society will use different affordability calculations to work out the maximum loan. The amount you can borrow changes depending on the amount you earn, the size of your deposit and your credit score.
Most lenders have a maximum income multiple for larger loans of between four and five times the applicant(s) salary. Increasingly many 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.
Private banks can structure deals for higher earners and asset-rich clients to suit individual needs.
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 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.
• 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 budget.
• 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 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 are also able to 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.
Banks and building societies use mortgage affordability calculations to determine how much you can borrow.
Some high street mortgage lenders provide five times single or joint income mortgages, so applicants typically need to earn around £200,000 to qualify for a £1 million mortgage.
More banks provide 5.5 times salary mortgages for higher earners and professionals, so single or joint applicant(s) would need to earn around £185,000 to qualify for a £1 million mortgage.
For applications where borrowers earn over £100,000, it is possible to borrow up to six times their salary, but the rates will be more expensive.
Certain banks and building societies will accept income paid in foreign currency. This includes US dollars, Euros, and Swiss Francs.
Other accepted currencies include: Australian Dollar, Bulgarian Lev, Canadian Dollar, Croatian Kuna, Czech Koruna, Danish Krone, Hungarian Forint, Japanese Yen, New Zealand Dollar, Norwegian Krone, Polish Zloty, Romanian Leu, Singapore Dollar and, Swedish Krona.
Some lenders will factor in currency fluctuation and take a "haircut", so the amount you can borrow may be reduced.
Trinity Financial's brokers have access to a range of lenders offering high-net-worth clients offset mortgages.
These mortgages are outstanding for those receiving more significant bonuses or commissions because of the reduced interest you pay. You can also reaccess the funds if you need them.
Offset mortgages tend to be more expensive than standard ones, so borrowers will pay more, especially if they do not use the facility.
Most banks and building societies allow borrowers to repay 10% of their outstanding mortgage balance each year without charge. They would need to reapply to their lender to get the overpayments back if required, which can be challenging.
Some lenders offer £1 million+ mortgages without early repayment charges.
Get started today
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