£2 Million Mortgages

As property prices in parts of the UK continue to grow, there’s an increasing demand for mortgages of £2 million or more. While some mainstream lenders do offer multi-million-pound mortgages, the best deals are usually found away from the high street.

In this guide, we’ll take you step by step through how to get a £2 million mortgage, how much deposit you’ll need, what you can expect to pay and why an expert high net worth mortgage broker will be essential if you’re to find the right lenders for your needs.

Can you get a mortgage for £2 million or more?

Yes. House prices, especially in London and the south-east, are increasing, and the number of homes selling for seven figures is going up every year, so the market is definitely there.

As with any size mortgage, it depends on whether you meet a lender’s specific eligibility criteria. Although plenty of high street banks are willing to lend at that level, the best deals are available through private lenders who specialise in mortgages for high-net-worth individuals. To find these lenders, you’ll need the help of a broker.

If you have an annual income of over £300,000 and/or assets worth over £3 million, you’ll also qualify for a provision from the Financial Conduct Authority known as the high net worth exemption. This gives lenders the flexibility to consider your mortgage on a more personal basis and will provide your broker more scope to negotiate a better deal on your behalf.

How a high net worth broker can help

Getting the help of an expert broker can be valuable whatever the size of your mortgage, but for lending at this scale, you’ll definitely need to seek the help of an experienced high-net-worth specialist.

There are several key ways they can help:

Access private lenders

Going to a private lender may be a good option if you don’t fit the traditional tick box criteria of the high street banks, but you’ll typically need an intermediary. A specialist broker will have existing contacts within these organisations and be able to access the right people and products on your behalf.

Have an expert take the lead on negotiations

Qualifying under the high net worth exemption means you’re likely to negotiate your mortgage on a bespoke basis. A specialist broker will have plenty of experience in negotiating these sorts of deals and will be able to secure the best possible rates for you.

Get tailored advice

Your financial situation may be more complex, but a broker can help work through your options and maximise your borrowing capacity. For example, your income may come partly from significant bonuses, or you may have assets that can be secured against a mortgage.

The brokers we work with can give you tailored, holistic advice that considers your whole situation, finding the right mortgage arrangement that best suits your needs.

If you get in touch, we can arrange for a specialist to contact you directly.

Monthly repayments on a £2 million mortgage

To give you an idea of what you can expect to pay on a £2 million pound repayment mortgage, we’ve put together some figures based on an interest rate of 3%.

Remember that on a mortgage as large as this, even seemingly small variations in interest rates can have a big impact on monthly repayments, hence why any negotiations with lenders will be enhanced with an experienced broker by your side.

The above is for illustration purposes only, and you should always check with your lender or one of the advisors we work with for the most up-to-date information.

Deposit requirements

Most mainstream lenders will usually require a deposit of at least 25% on mortgages of £2 million and over. Generally, though, the more deposit you can put down, the lower the risk and, therefore, the better interest rates should be applied.

The lowest deposits are only really available through specialist lenders. They’ll be much more creative with your overall financial position, taking into account any other financial assets you may have or future earnings in order to look more favourably on your application.

High street banks versus private lenders

The key advantage of private lenders is their flexible approach to what would normally be quite rigid eligibility criteria and because they’ll assess your application on a bespoke basis, this opens up more options for you, such as:

• Deposit size and interest rates
• Repayment structure
• Income from multiple sources, as well as assets
• Projected future earnings and bonuses
• Future income from the sale of a business

Many high street banks will have £2 million mortgage options, either as part of their mainstream banking or through a private banking arm. However, specialist high-net-worth lenders will generally have higher expertise in these types of mortgages.

Get matched with a broker specialising in multi-million-pound mortgages

A broker specialising in seven-figure mortgages will have significant experience and vital contacts within the private banks, giving you the best chance of getting the mortgage you want.

Our broker matching service is completely free, and we can quickly assess your circumstances to match you with an advisor who is best placed to help.

Call 0330 822 0505 or make an enquiry, and we’ll set up a free, no-obligation chat between you and a high-net-worth broker today.