£4 Million Mortgages

City centre apartments or luxury bolthole, numerous properties out there need a £4 million plus mortgage – and that’s not out of the question.

The higher lending amount means finding a lender and loan right for you is a little trickier.

By reading this guide, you’ll have all the information about getting a high-value mortgage, your repayment situation, and how to start your search for the right lender.

Can you get a mortgage for £4 million or more?

Yes. If you can afford it and – more importantly – can prove you can, getting a mortgage for over £4 million is possible.

Like with a standard mortgage, interest-only and capital repayment options are available. There are also high-value buy-to-let opportunities.

However, not all lenders will cater for such a high amount of loans. Many mainstream mortgage lenders cap what they’re willing to loan at £750,000 or £1 million and have very rigid requirements.

Specialist lenders that exclusively work with high net worth individuals – those who earn a yearly net income of over £300,000 or have more than £3 million in assets – can offer mortgages of £100 million or more and have much more flexible criteria.

These won’t be found on the high street but can be accessed via a specialist broker.

How a broker can help

For a £4 million plus mortgage, engaging a broker who knows the high net worth space is essential. Without one, the choice of mortgage deals will narrow, and you’ll miss out on some of the most competitive rates.

In this scenario, a broker can:

• Consult on which lender to approach: The brokers we work with have experience obtaining mortgages over £4 million and dealing with multiple assets. They’ll be able to tap into that experience and offer insights on whether to go with a high street bank or private lender and assess which of the available lenders is likely to have the best mortgage for you.
• Provide access to private lenders you wouldn’t otherwise find: Most specialist high-net-worth lenders only work via brokers, which means that in trying to find a mortgage yourself, you’d likely miss out on some competitive deals.
• Help negotiate a better mortgage: By going with a private lender, there’s an opportunity to negotiate on rates and terms. A broker can take the lead on this, working to get you the best deal.

Contact us today for a free consultation with a specialist broker who will guide you through the mortgage process.

What might repayments look like?

As with any mortgage, the £4 million mortgage monthly payment is subject to how long the term of your mortgage is and the interest rate. Interest rates for properties above £4 million tend to sit between 2-4%, although there are opportunities to negotiate if your situation is more complex. And, in general, the longer the term, the smaller the repayment amount.

For example, if you were approved for a £4 million capital repayment mortgage over 15 years and had an interest rate of 2%, you could expect to pay £25,743 a month. If the term were slightly longer at 25 years, that would drop to £16,957 and again to £13,254 if it is over 35 years.

The lenders offering £4 million mortgages

What’s the difference between using a private lender or a mainstream bank, and which is best for you?

Private lenders

Private lenders have more flexibility and are open to negotiating almost all terms, creating an agreement tailored for you. For example, if you have a lot of assets but not a lot of available cash, a private lender might be able to offer an asset-backed mortgage, where the loan is based on the value of your assets.

These and other bespoke options are available via private specialist lenders, who take a bigger-picture view of your finances and also tend to operate a little faster.

Typically, such lenders require you to have been personally recommended by an existing account holder or to be working with a broker. A broker can then take the lead in negotiating terms for you – saving you time and money – while providing access to an otherwise exclusive lender.

High street banks

Most high street banks – including HSBC, Natwest and Barclays – have private banking arms or large loan teams that offer high-value mortgages, usually up to £10 million, with competitive interest rates. Familiar names might provide reassurance for the large purchase you’re about to make, but the prominent bank structure usually means they’re more rigid in their lending criteria. It could be an instant rejection if you don’t meet a certain requirement.

In short, choosing a lender type depends on whether a bespoke agreement or big bank rigidity sounds better to you.

The table below highlights how the two lender types compare when finding a mortgage for over £4 million.

Whether you go the big bank route or opt to work with a bespoke lender, meeting the high net worth criteria means your application will be reviewed on a case-by-case basis.

Factors that impact your eligibility

Like any mortgage application, a lender will assess your ability to pay back the millions you’ve asked to borrow.

To get that oversight, they’ll consider your:

• Deposit: Lenders will be looking for a significant deposit to reduce the risk of loaning such a large amount. A loan-to-value (LTV) of 75% is a typical request for a property over £4 million, meaning you’d need to pay at least 25% of the property’s value as a deposit. If you can go higher, that will help get you a better deal. If you need to go lower, that’s also ok, but it would again be best to work with a private lender as they operate on a case-by-case basis, so they may be able to make exceptions.
• Earnings and assets: When it comes to high net-worth individuals, lenders, as granted by the UK’s Financial Conduct Authority, can focus less on income when judging affordability and take a more holistic view. That means they’ll factor in other investments you may have, such as stocks and shares, properties and boats, while also considering future earnings.

Typically, lenders loan up to 4.5 times a person’s annual income but certain high net worth lenders will extend this, in some cases, up to 20 times for those earning a larger amount.

• Credit history and debt: Mortgage providers need to know if you’ve got a backlog of bad investments or outstanding debt. Some won’t offer such a big loan to an individual with a bad credit history, but others will, provided you adhere to any other criteria they may have and can show you’ll be able to meet the repayments.

Get matched with a high-value mortgage broker

When looking for a mortgage over £4 million, you want access to expert advice and guidance from start to finish. Enter a specialist broker.

Aside from knowledge of the high-value market, the brokers we work with have existing relationships with lenders, including those that are more exclusive. They will save you time by knowing which will give you the best agreement for your personal situation.

Call 0330 822 0505 or make an enquiry today to get matched to a mortgage advisor and schedule a free, no-obligation consultation.