How much income do I need to earn for a £2 million mortgage?
Mortgage lenders generally offer between four and 5.5 times the salary when assessing affordability for £2 million mortgages.
Some lenders require single or joint applicants to earn at least £500,000 a year to qualify for £2 million, while others expect them to make just over £363,000. The most generous lenders will require them to earn at least £333,333 each year.
Some mortgage lenders will lend against assets or investment portfolios and can use high-net-worth borrower exemption rules to issue larger loans. This means asset-rich and cash-poor clients can still secure larger mortgage loans.
How many mortgage lenders offer £2 million mortgages?
Trinity Financial has access to various banks and building societies that offer multi-million-pound mortgages. One lender has select mortgage rates between £1 million and £5 million and offers a five-year fixed rate of close to 4% with a £999 arrangement fee.
Aaron Strutt, product director at Trinity Financial, says: "Many mortgage lenders are still keen to attract wealthier buyers and issue larger mortgage loans. They actively try to undercut private banks by offering lower rates and cheaper arrangement fees.
"Assessing the market before locking into a multi-million-pound mortgage is essential to ensure you get the most competitively priced rates. Our brokers regularly speak to clients who are remortgaging away from private banks or seeking funding to buy a new prime property postcode.
Do the lenders use income multiples for £2 million mortgages?
Banks and building societies use mortgage affordability calculations to determine how much you can borrow. The figures they use to generate the maximum loan sizes change significantly depending on the lender.
Providers increasingly offer more generous mortgages to entrepreneurs, CEOs and company directors. They are also keen to attract bankers and city professionals.
When generating the maximum loan, the lenders will assess your monthly outgoings and credit commitments, but some are more lenient. For example, some providers do not reduce the loan size if you have children, while others take higher bonuses or commissions into consideration.
Credit cards, loans, cars on finance and kids in private schools reduce the amount people can borrow, although some lenders are more lenient on specific credit commitments.
How much of a deposit will I need for a £2 million mortgage?
Applicants generally need a deposit of at least ten per cent, although a 35 per cent or 40 per cent deposit is required to secure the mortgage at competitively priced rates.
Can professionals like doctors and dentists borrow more when applying for £2 million mortgages?
Professionals such as Accountants, Actuaries, Architects, Barristers (including Barristers in Pupillage), Dentists, Chartered Engineers, Medical Doctors, Optometrists, Pharmacists, Solicitors, Chartered Surveyors, and Vets can borrow six times their salary.
Applicants would need a single or combined income of at least £333,333 to borrow £2 million at six times their salary.
How much are £2 million mortgage rates?
Banks and building societies have been lowering their mortgage rates. Two-year fixes are now sub-5%, and some five-year fixes are approaching 4%. The average mortgage rate for borrowers with larger deposits is around five per cent.
Click to view our large mortgage loan best buy table and borrowing calculators.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
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
Another one of the most competitively priced two-year fixes for £2 million mortgages is available through Santander for Intermediaries' large loan team priced at 3.95%.
Wealthier clients with clear credit histories could access £2 million mortgages with monthly repayments of £6,583.33 on interest-only, rising to £9,490.74 on full capital repayment over a 30-year term.
Santander for Intermediaries' 3.95% fixed rate has a £999 arrangement fee and a two per cent early repayment charge in year one, lowering to one per cent in year two. The APRC is 6.7%, and borrowers must put down a 40% deposit to qualify.
The mortgage reverts to the current 6.75% standard variable rate if they do not remortgage or complete a product transfer.
Yes, but the more acres of land a property has, the fewer lenders you’ll have to choose from.
Most banks and building societies will consider properties with up to two or three acres.
Many will consider properties with up to 10 acres on a case-by-case basis.
Trinity Financial has access to a selection of high street and private banks considering properties with over 10 acres.
Yes, many of the banks and building societies we work with offer interest-only £2 million+ mortgages.
In comparison to full capital repayment mortgages, interest-only mortgages mean borrowers will only pay the interest back each month rather than the whole amount owed. As a result, they typically need a creditable plan to repay the mortgage by the end of the term.
To find out whether an interest-only or part-interest-only mortgage suits you, contact Trinity Financial.
• You can 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 the property type you want to buy. We assess your mortgage and financial protection needs based on your monthly budget.
• We collect the information and documentation that the lenders and providers need.
• Based on the information supplied, we provide you with illustrations of the most suitable products for your circumstances.
• We then apply 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 with all involved parties, including valuers, estate agents, and solicitors.
• Post-completion, we are available for any questions. When you reach the end of your initial product, we can also discuss any further mortgage, will or financial protection product requirements.
As part of our ongoing service commitment, we will contact you at least five months prior to your fixed or tracker rate expiring to ensure you avoid reverting to an expensive standard variable rate.
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