How Much Does a £1.25 Million Mortgage Cost?

Tags: Interest-only mortgages, Private banks, Remortgages, Residential mortgages

Jun 01 2025

Banks and building societies continue to compete to attract higher-net-worth borrowers seeking larger mortgage loans. This means they offer competitively priced rates for qualifying clients seeking to raise mortgages of around £1,250,000.

A £1.25 million mortgage monthly payment can vary significantly based on the applicant's income, credit score, their overall financial situation and the mortgage lender. For a 30-year term with a 4.25% interest rate, the monthly payment would be roughly £6,149.25. However, interest-only options could substantially alter this amount and bring the monthly cost down to £4,427.08.

1) Example £1.25 Million Mortgage Repayment Costs

Mortgage lenders are offering larger mortgage loans at rates priced around 4% at the moment. Normally, when you have a 35% or 40% deposit, a clear credit history and sufficient income to qualify for a £1.25 million mortgage the costs would be:

Term	Interest Rate	Monthly Repayment (Repayment mortgage)	Interest-Only Option
25 years	4.25%	£6,771/month	£4,427/month
30 years	4.25%	£6,149/month	£4,427/month
35 years	4.25%	£5,723/month	£4,427/month

2) How Can I Make £1,250,000 Mortgages More Affordable?

Here are realistic strategies:

Increase Term Length

Extending from 25 to 30+ years lowers the monthly cost.
Downside: You pay more interest overall, but the interest can be reduced if you make lump sum overpayments. Or reduce the term in the future if you earn more money.

Choose Interest-Only (Shorter Term preferably)

Have an interest-only mortgage, or ideally, a part interest-only mortgage with 50% of the mortgage on interest-only and the rest on capital repayment. This ensures you repay some of the debt.
You’ll need a credible repayment strategy (e.g., selling assets or property)

Put Down a Bigger Deposit

Reduces the loan amount and lowers monthly payments by saving for longer, freeing up assets, or potentially asking the Bank of Mum and Dad for help.
Also, it generally improves interest rates, although not by a huge amount, especially if you have a larger deposit.

Use a Broker like Trinity Financial to Find Better Rates

Especially if you have a more complex situation. Trinity's brokers consistently help high-value or complex income streams for the self-employed, as well as those with bonuses or investments.
Rates can vary quite significantly between the banks and building societies.
If you plan to take out a £1.25 million mortgage, it makes sense to secure the lowest possible rate, which means searching the mortgage market for the most competitively priced deal.

Offset Mortgage

Link savings to your mortgage to reduce interest paid.
Offset mortgages are popular with the self-employed and borrowers with savings because they can use their cash to reduce the interest and access it again if and when needed.
Fewer lenders are offering £1.25 million offset mortgages than there were, but they are still available.

3) How Do I Get a £1.25 Million Mortgage?

Step-by-Step Guide:

Check Your Affordability

Trinity Financial's brokers can confirm how much you can borrow based on your income, outgoings, credit score and credit commitments. Our experts use the lenders' affordability calculators to secure the most generous loan sizes or call our contacts at the private banks.

Prepare Your Documents

Payslips, bank statements, ID, tax returns (if self-employed).

Get an Agreement in Principle (AIP)

Shows you’re mortgage-ready — valid for ~90 days. While an Agreement in Principle is not a guarantee that a lender will issue a £1.25 million mortgage, it provides a good indication if you would qualify for a mortgage or not. Once you have an Agreement in Principle, it is essential to maintain a good credit history, make all repayments on time, and ideally avoid using credit cards or taking out loans. Additional debt may significantly reduce the amount you can borrow. It is not unusual for lenders to run another credit check before the mortgage funds are drawn down, which means they are checking your finances one last time before you complete on your property purchase.

Find a Property

Ensure it meets lender criteria (e.g., standard construction). If you are buying a house or flat in a built-up area, then properties are generally acceptable provided they have a working kitchen and bathroom, and they are in a habitable condition. If the property is an ex-local authority, has more than 10 acres or is next to noisy commercial premises.

Submit Full Application

Through a broker or directly to a lender. Trinity's brokers submit a mortgage application and work hard to get it to the mortgage offer stage. Chasing lenders on a regular basis and managing any issues that may arise.

Valuation & Offer

The lender values the property, and if the valuer is happy with the property and the values stack up, that part of the mortgage application is approved. Through Trinity normally takes a couple of weeks to get a mortgage offer, but it can be a lot quicker.

Conveyancing & Completion

Solicitor finalises the deal, and funds are transferred.

4) What Is the Lenders’ Acceptance Criteria for £1.25M Mortgages?

Factor	Requirement
Income	Usually 4.5–5.5× your annual income. You’ll likely need £230k–£280k/year (combined, if joint).
Deposit	10–25% — bigger deposit = better rate (i.e. £125k–£312.5k).
Credit Score	Clean credit history preferred. Adverse credit? If you have multiple missed credit card or mortgage repayments, a specialist lender may be able to help, provided you have a good reason or excuse for the missed payments.
Employment	Employed with stable income, or 2+ years’ self-employed accounts
Affordability	Lenders assess all income and expenses, including child care, loans, credit cards, private school fees, and cars on finance.
Age & Term	Must usually repay by age 70–75, but exceptions exist.
Property	Must be mortgageable: standard construction, suitable condition, etc.

5) Looking For A £1.25 Million Mortgage And Receive A Bonus?

Lenders like Coutts, Investec, Barclays Premier and HSBC specialise in high-value lending. They may offer:

Flexible underwriting
Custom repayment plans
Interest-only with asset-based lending

Would you like us to calculate how much you'd be eligible to borrow based on your income or expenses? We can also help you compare repayment plans based on your deposit size or interest rate. Just submit an enquiry to us and we will call you back.

6) How Much Do You Need To Earn To Get A £1.25 million Mortgage?

It is possible to arrange mortgages of £1.25 million or more for borrowers using five or five and a half times salary income multiples, or a few lenders even offer six times salary mortgages. We also negotiate £1 million+ larger mortgage loans for clients, provided they have a 10% deposit.

Here is a table to show how much you may be able to borrow depending on your salary:

Single or joint income	4.5x salary borrowing	5x salary borrowing	5.5x salary borrowing
£160,000	£720,000	£800,000	£880,000
£180,000	£810,000	£900,000	990,000
£207,500	£933,750	£1,037,500	£1,141,250
£210,000	£945,000	£1,050,000	£1,155,000
£230,000	£1,035,000	£1,150,000	£1,265,000
£260,000	£1,170,000	£1,300,000	£1,430,000

Call Trinity Financial on 020 7016 0790 to secure a £1.25 million 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

How much does a £1 million mortgage cost?

Nationwide for Intermediaries offers a two-year fix at 3.90% for larger mortgage loans between £300,000 and £5 million for borrowers purchasing a property. The overall cost for comparison is 6.7% APRC. The fixed rate is 0.05% more expensive for remortgages.

If you borrowed £1 million on the 3.90% two-year fix, the monthly interest-only cost would be £3,250 increasing to £4,716.68 on capital repayment over a 30-year term.

This mortgage is available on either an interest-only or capital repayment basis, and borrowers require a 40% deposit to access the rate. After two years, Nationwide's mortgage will revert to a standard variable rate of 6.99% unless you switch deals, and early repayment charges apply.

Representative example: A Nationwide capital and interest mortgage of £1,000,000 payable over 30 years, initially on a fixed rate basis at 3.90% for two-years and then on the lender's 6.99% standard variable rate for the remaining 28 years. The 3.90% rate would require 24 monthly repayments of £4,716.68 followed by 336 payments of 6,541.36. The total amount repayable would be £2,312,611.28 made up of the loan amount, plus interest (£1,311,097.10) and £1,495 (product fee), £0 (final repayment charge), £15 (completion fee). The overall cost for comparison is 6.7% APRC representative.

Contact Trinity Financial on 020 7016 0790 to find out how much your £1 million mortgage would cost.

How much of a deposit will I need for a £1 million mortgage?

You will typically need a 10% deposit to qualify for a £1 million mortgage.

Some lenders are offering more generous loan sizes for those with smaller deposits.

A limited number of lenders may offer a 5% deposit option to get a £1 million mortgage, but the rates are likely to be higher.

Click here to read our mortgage blog: https://www.trinityfinancialgroup.co.uk/mortgage-tools/mortgage-news/how-much-deposit-do-i-need-for-a-1-million-house/

How much deposit do I need for a £2 million mortgage?

High street banks typically require clients to have at least a 15% deposit to access a mortgage for £2 million+. However, private banks can consider as low as 5 -10% deposits.

It is possible to take a cross charge against investments like stock and share portfolios to reduce the size of the deposit required, or charges can be secured against other properties you own.