Which lenders offer the best mortgages if you're buying a 'mansion'? Will the new tax make a difference?
Quick Summary
Do mortgage lenders offer specialist mortgages for borrowers buying 'mansions' valued at £2 million or more? Which lenders are the best for larger mortgage loans? Is the high council tax going to make a real difference to buyers?
The 'mansion tax' has generated a massive amount of press coverage since the budget as well as frustration for many homeowners across the UK, but what difference will the tax make to mortgages and affordability?
A mortgage above £1 million is typically regarded as “high-value” — and at £2 million you’re firmly in the prime or upper-end property bracket.
For many wealthier borrowers buying £2 million+ properties, the tax will not materially affect mortgage affordability unless they can only just afford the mortgage required to buy a £2 million 'mansion.'
Lenders often shift from standard income-based affordability criteria for larger loans to a broader assessment of your assets, liquidity, income complexity (bonuses/dividends), and long-term financial strength.
Recommended lenders for £2 million+ mortgages
If you're aiming for a £2 million mortgage—say, to buy a high-end house or small mansion—these lenders stand out today:
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HSBC UK (High-Value Mortgage team) — explicitly offers high-value mortgages for loan amounts above £2 million.
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Santander UK (Large-Loan / Intermediary team) — known to provide competitive two-year fixed deals on £2 million mortgages; with two-year fixes start from 3.55%.
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NatWest / Intermediaries — while public literature may emphasise standard mortgages, NatWest remains a viable high-value lender for large loans when income/assets support it.
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Private banks and specialist lenders — for clients with complex financial situations (business income, investments, offshore income, etc.), private-bank or bespoke high-net-worth mortgage providers may offer the greatest flexibility and best chance of approval.
Typical £2 million+ mortgage lending terms
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Mortgage lenders usually look for a substantial deposit or equity — many require at least 20%, though some may consider 10% if other financial criteria are strong.
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For someone borrowing £2 million, a deposit of circa £400,000 (20%) is common; some applicants might secure slightly higher loan-to-values depending on circumstances.
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Private-bank and HNW mortgages often allow more tailored underwriting — considering overall wealth, investment income or assets, not just salary.
At present, sub-4% two-year fixed mortgages for £2 million loans are possible — for example, via Santander’s large-loan team and Nationwide for Intermediaries.
Top lenders for mansion property mortgages (and their maximum loan sizes)
| Lender | Maximum Loan Size | Why they’re good for mansion buyers |
|---|---|---|
| Barclays (Intermediaries) | Up to £10 million | High-street name with one of the largest caps; strong for £2–10m loans. |
| Santander (Intermediaries) | Up to £5 million | Consistent criteria, competitive rates, solid for £1–3m lending. |
| NatWest (Intermediaries) | No stated upper limit | Very flexible for prime clients; strong at £1m+. |
| Halifax (Intermediaries) | Effectively “no maximum” | Pragmatic underwriting; options for complex incomes. |
| Private Banks (Coutts, Investec, C. Hoare, etc.) | £5m–£20m+ (bespoke) | Best for ultra-large loans, asset-rich clients, bonus/dividend income, or unconventional structures. |
What about the other tax changes — will they impact £2 million buyers?
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Tax on dividend income will increase by 2 percentage points. The ordinary rate will rise from 8.75% to 10.75%, and the upper rate from 33.75% to 35.75% from April 2026. The additional rate will remain unchanged at 39.35%.
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To access high-value or high-net-worth mortgages, what matters most is overall financial strength, assets and long-term income or liquidity, not simply taxed income.
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Private banks and specialist lenders are used to dealing with complex income streams (dividends, bonuses, investments, trusts) — so changes in tax or income treatment typically don’t block mortgage approval, though they may affect long-term affordability.
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That said — higher taxes and property levies might affect your ongoing cost of ownership, which could influence whether buyers choose to borrow at all. But from a mortgage-approval standpoint, they are rarely fatal.
In short: for a £2 million purchase, tax changes are unlikely to prevent you getting a mortgage — so long as you present a solid financial profile, ideally via a bespoke or HNW-aware lender.
Over time, as house prices increase, more houses are likely to be caught up paying the additional capital tax, meaning some homeowners will downsize or think twice about buying if cash flow is an issue.
Lending solutions with Trinity Financial
Are you looking to buy a property and require expert advice? We’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.
Call Trineity Financial on 020 7016 0790 to secure a faster mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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