How to get a large mortgage loan in the UK

Mortgages

How to get a large mortgage loan in the UK

If you are looking to borrow a large mortgage of £1 million or more to fund a house purchase, you may be wondering ‘what’s the biggest mortgage I can get?’.

In this article we explain some of the most common challenges people face when seeking a large mortgage, what factors you need to consider and some of the possible solutions in securing a high-value mortgage offer.

What is considered a large mortgage?

Across the UK mortgage industry, a large loan is typically considered to be £1 million or more.

What deposit do you need for a large mortgage?

The minimum deposit that is typically required for a large mortgage of £1 million or more is 15% of the property purchase price, although this differs from one lender to the next. However, if you can afford to put down a bigger deposit it could be beneficial for several reasons including:

• Access to more lenders
• Access to more competitive interest rates
• Smaller monthly repayments
• You’ll pay less interest over the mortgage term

Why is it difficult to get a large mortgage in the UK?

There are several challenges that clients face when sourcing a high-value mortgage of £1 million or more. Some of the most common challenges include:

• Demonstrating affordability
• Finding a lender who can meet your requirements
• Finding a specialist mortgage adviser with experience in supporting high-net-worth individuals

Demonstrating affordability

Clients who are looking for a large mortgage typically have multiple streams of income, often in complex structures. This can make it more difficult to prove your income and demonstrate affordability for a large loan. For example, you might own multiple businesses, and receiving dividends from some but not others. You might have other income sources, such as from investments for example. Alternatively, you may be employed but have a complex structure of commission and bonuses. It’s also likely that your income fluctuates from one month to the next, which can add another layer of complexity to demonstrating your affordability.

Finding a large mortgage lender

The larger the mortgage you are looking to borrow, the fewer lenders there are to choose from which can make the application process more rigorous. Most high-street banks offer large loans of £1 million or more, however, private banks typically offer more bespoke lending solutions that are tailored to sophisticated and high-net-worth individuals. 

Finding a specialist mortgage adviser

An experienced and knowledgeable mortgage adviser is invaluable no matter what size loan you are looking to borrow. However, working with a specialist adviser is even more important when dealing with a high-value mortgage. Firstly, many mortgage products are only available through an intermediary. And secondly, if you approach a lender directly and your application is declined, this could leave a mark on your credit report and affect future mortgage applications.

At Grayson Lewis we understand what large mortgage lenders and private banks look for to satisfy their lending criteria. We know exactly which lenders to approach based on your circumstances. We work closely with sophisticated clients as their trusted adviser to guide them throughout the process and advise them on the most suitable way to obtain a large mortgage that meets their requirements.  

How to get a large mortgage

The process of applying for a large mortgage differs in many ways to an average-sized mortgage. When borrowing a large loan of £1 million or more lenders will often take a bespoke approach through specialist teams to assess your circumstances and calculating your affordability.

At Grayson Lewis we leave no stone unturned in identifying the best way to structure your income and your application. We carefully assess not only your sources of income but also your overall assets to create a bespoke solution for your borrowing requirements.

How can I repay a large mortgage?

As large mortgage loans are often bespoke to each client there is some added flexibility with repayment options. For example, in some cases you might be able to make annual repayments instead of monthly repayments. You might also have a choice of a repayment mortgage, interest only, or a combination of both.

Case study: How we helped a business owner to secure a larger mortgage

The challenge:

One of our clients was looking to secure a new mortgage on a bigger family home. Before applying for a mortgage, he had sold his business and invested a significant amount of the sale proceeds. As a result, he had limited proof of typically income sources to support his mortgage application. What’s more, he didn’t want to liquidate any investments to avoid disturbing a long-term investment strategy.

The solution:

Using our knowledge, expertise and lender relationships we were able to navigate these challenges with ease. We found a lender who was willing to take his investments into account despite no income being drawn from them when assessing affordability. This satisfied the lenders criteria and enabled us to secure a mortgage offer.

Working with Grayson Lewis Financial Planning

At Grayson Lewis we are not only mortgage specialists, we are also financial planners which means we offer a holistic approach to giving mortgage advice. We have a breadth of knowledge across the full spectrum of financial planning which puts us in a great position to support sophisticated clients and business owners with their mortgage requirements.

If you are ready to speak to a specialist mortgage adviser about a large mortgage loan, please get in touch. 

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Your home or other property may be repossessed if you do not keep up repayments on your mortgage.

Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.

We offer a comprehensive range of first charge mortgages from across the market that are made available to mortgage intermediaries for which we are paid a procuration fee by the lender.