Large Mortgage Loans for High Value Properties
Here you’ll find helpful information on securing a large mortgage as a high net worth borrower. We talk about deposits, interest rates, AUM and dry lending, the process and more. You can also use our best buys tool to compare mortgage deals.
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How Do You Find a Large Mortgage Loan?
Most high street lenders in the UK offer mortgages of up to £5 million with a handful stretching to £10 million. Typically, the maximum LTV (loan-to-value) for a large loan is 85%.
Borrowers will often use high net worth mortgage brokers like John Charcol because we understand complex and unique situations and we can source bespoke deals from the right lenders. We handle everything for you - so you can spend your time on more important things.
Minimum Deposit for a Big Mortgage
The minimum deposit for a large mortgage is 15%.
John Charcol can also find lenders that will consider loans secured against some forms of existing assets that aren't property.
Interest Rate Range for Large Loans
Average interest rates for larger mortgages via mainstream large loan lenders tend to be from 3.5% (March 2023). There are options with specialist large loan lenders like private banks but these can sometimes be more expensive as they're often bespoke and depend on the borrower's unique situation.
AUM and Dry Lending
There are 2 ways in which a large mortgage lender might offer you a mortgage; both have benefits and downsides which you’ll need to consider and discuss with your mortgage adviser:
- AUM (assets under management) - this is a common scenario with private bank mortgages. Under this arrangement, the lender will want to manage other assets for you - such as your stocks and shares portfolio. These assets provide the lender with greater security and often result in them offering a higher LTV or a larger income multiple than would have otherwise been achieved
- Dry Lending – this arrangement works in the same way as a traditional mortgage. It’s where the lender takes security over the property they’re lending against without taking security over any other assets which you may already have
Large Mortgage Loan Payments
Due to the bespoke nature of large mortgage loans, it’s sometimes possible to structure the monthly mortgage payments in a way that better suits your personal circumstances. For example, this may involve an annual rather than monthly mortgage payment to coincide with annual bonus payments.
Your mortgage broker will discuss these options with you and work with the lender to find the solution that best meets your needs.
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Compare Large Mortgage Loans from Specialist Lenders
You can use our comparison tool to look at mortgages currently on the market in the UK, however it’s worth noting that not all specialist mortgage lenders publish their rates. Therefore, we recommend you speak to an adviser for a more accurate picture of the mortgage deals and rates available.
How Can John Charcol Help with Larger Mortgages?
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We Give Personal, Expert Advice
We work around your schedule to help you arrange a mortgage that suits your circumstances, no matter how complex.
Our Process
1. First Conversation with Adviser
When you phone us, you can either arrange a phone appointment with your adviser or a face-to-face meeting – whatever suits you. Your adviser will ask you some questions then go away and find you the best deal for your circumstances and future needs. They’ll organise a follow up during which they’ll present you with what they’ve found.
2. Decision in Principle
Once you’re happy with your adviser’s recommendation, they’ll go about securing your DIP (Decision in Principle) - which is basically a promise from the lender that they’ll loan you money on the condition that the information you’ve provided is correct and subject to a valuation of the property.
3. Offer on Property
After you’ve secured a DIP (Decision in Principle), you’ll be in a great position to make an offer on a property. Sellers like DIPs. They show you can afford the purchase. What’s more, the fact that you’ve already started preparing for the transaction highlights to them that you’re serious in your intention to buy.
4. Pre-Application and Submission
Following the acceptance of your offer, we’ll send you some information which explains all the documents we need to submit to the lender. You’ll be assigned a client relationship manager who’ll check and submit certified copies of your documents; they’ll liaise with both you and the lender. Your adviser will then submit the fully packaged mortgage application.
5. Lender Underwriting and Valuation
The lender will underwrite your application; this basically means they’ll verify that the information you’ve provided is correct and review all your documents for themselves. They’ll also instruct a valuation for their purposes on the property you want to buy to make sure there are no significant problems with it.
6. Mortgage Offer
If the lender is happy with everything they’ve found, they’ll send you a mortgage offer. They’ll also send us a copy.
7. Conveyancing
After you’ve accepted your mortgage offer, you’ll go through the legal part of the process, known as conveyancing. This is where the solicitors/conveyancers draw up contracts and organise the actual, legal purchase of the property. You’ll also need to arrange buildings insurance at this stage, making sure it’s in place from exchange.
8. Exchange and Completion
Once everything is in place, your conveyancer/solicitor will exchange contracts with the seller’s conveyancer/solicitor. If your deposit is coming from savings or a gift, then it’s at this point that you put the deposit down and are legally bound to the property. You’ll lose your deposit if you pull out after exchange. If your deposit is coming from the sale of your current property, then it’s transferred at completion as part of the whole purchase. The purchase completes when the money is transferred on an agreed-upon date. This is when you get the keys to your new home.
Large Mortgage FAQs
Do Any Banks Offer Million Pound Mortgages?
There are high street lenders that provide mortgages for up to £7.5 million. If you have complex income and/or assets it's best to use a specialist broker with experience in large mortgage loans like John Charcol to ensure you get the best deal for your circumstances.
Why Is It More Difficult for High-Net-Worth Individuals to Get a Mortgage?
As a high-net-worth individual it can be more difficult to get a lender to understand your circumstances and cater to your complex requirements without the help of an expert broker.
This is because:
- The way your income is structured may be very complex
- Borrowers tend to be busy people with major time constraints
- Many of these mortgages are bespoke, so finding which lender will offer the best deal requires experience and time
A specialist mortgage broker with experience servicing high-net-worth individuals will be able to make this process easy for you.
How Long Do Large Home Loans Take in the UK?
Large mortgages for residential purposes can take around 6 weeks on average with a specialist mortgage broker, assuming there are no significant issues.
Do I Need to Use a High-Net-Worth Mortgage Broker?
It is possible to secure a large mortgage loan without using a specialist broker. However, high-net-worth borrowers tend to have complex circumstances and often require bespoke deals which can be a lot of hassle to source and arrange. Using a mortgage broker makes this process a whole lot easier, saves you time and ensures you get the best deal for your situation.
It's important you use a high-net-worth broker that will provide you with an entirely excellent service. John Charcol have years of experience in this area and will manage everything for you with efficiency. We know what will suit your needs, are experts in understanding very complex income structures and always provide a smooth and discreet service.
Can I Get a Large Buy-to-Let Mortgage?
It is possible to take out a large buy-to-let mortgage. It's best to use a specialist mortgage broker like John Charcol if you want to save time, money and ensure you get the best deal on the market.
See our page for more information on buy-to-let mortgages.
Alternatively, learn more about limited company buy-to-let mortgages and portfolio landlord mortgages.
JC Legal
We can help you with conveyancing by referring you to a legal team experienced in high-net-worth loans, via our JC Legal service.
Home Insurance
No need to scour the market in search of the best insurance packages. We can find you buildings and contents insurance for your specific needs.
Protection
It's important that you protect yourself against unforeseen circumstances when you take out a large loan. Our team can arrange protection cover for you.
Concierge
We can help you arrange removals for your new property, pack up, set up utilities and bills, register for Council Tax and more with our free Concierge Service.