Million Pound Mortgage

We work with select high street and private banks that will look at your requirement on a bespoke basis.

Our service provides:

• Bespoke lending solutions from £1million
• Large mortgage loans up to 95% LTV (Loan to value)
• Uncomplicated approach to income & wealth
• Large loan interest only mortgage options 
• Lombard lending from £2m
• Mortgages for residential and investment properties
• Mortgage finance for landed estates
• Borrowing into retirement options (including interest only)
• Options for short term finance (bridging), buy to let, commercial and development
• Mortgage solutions for complex income arrangements e.g. onshore and offshore trusts and property held in offshore companies
• Solutions for HNW & UHNW individuals with no assets under management requirement
• Offshore solutions for UK expats, non domiciled UK residents, UK residents earning in a foreign currency and foreign nationals
• Independent service & expert advice

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Getting a Million Pound Mortgage - The Full Guide

Written by: Sam Hodgson

Last updated: 29/11/2024

Key Takeaways

• To qualify for a million-pound mortgage, you typically need a household income over £200,000.
• Some professionals (such as doctors, lawyers or accountants) may be eligible for up to 5-6 times their income.
• It's possible to include commission and bonus to boost your affordability. 
• You'll need at least 10% deposit or equity, but a 20-25% deposit is likely to get you more favourable rates. 

Securing a million-pound mortgage in the UK is no small feat, but it is achievable with the right financial profile and preparation. If you have a substantial income or wealth tied up in assets, it's likely you'll be able to get a mortgage with a high street bank, but it's worth evaluating your options to make sure you're getting the best deal out there. If you're looking for a large mortgage, you'll probably want to save costs on interest rates, after all. 

A number of buyers consider private lenders, who can offer more flexible terms and are often willing to work with complex financial situations. This could be a suitable option if you don't have a straightforward income structure or you have high-value assets.

Private lenders tend to offer more personalised terms and faster approval processes for these circumstances. However, traditional high street banks can still be a viable option for borrowers with straightforward financial profiles.

If you're looking to make a purchase from overseas, there are international mortgage products available, but you'll usually need to provide thorough documentation and a higher deposit.

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Call our large mortgage loan team on 0203 900 4322 to discuss your requirements or book a call back at a time that suits you.

Is It Hard To Get a Million Pound Mortgage?

Yes, for the average person in the UK, getting a million pound mortgage is hard. The rule of thumb when getting a mortgage is generally that you can borrow around 4.5x your annual income, so you’ll need a household income of over £200,000 to be eligible for a million pound mortgage.

This could be on a single income, or a combination of you and your spouse or partner’s salaries, but either way, it is a substantial income.

However, some professionals (doctors, lawyers can borrow as much as 5 times or even 6 times their mortgage. And if you have significant assets or substantial bonus/commission payments, you could be eligible for a high net worth mortgage with a private lender.

Private lender mortgages are typically more flexible than high street mortgages and can offer more favourable deals, but they will only want to work with specific cases and will typically want to build a long-term relationship managing your wealth across the board.

How Much Deposit Do I Need for a Million-Pound Property?

When purchasing a million-pound property in the UK, aiming for a deposit of at least 10% of the property's value (£100,000) is essential. However, many lenders prefer a larger deposit, such as 20% or even 25%, to offer you better mortgage rates and terms.

To secure a favourable mortgage deal, consider aiming for a deposit of £200,000 to £250,000. This substantial deposit not only enhances your chances of mortgage approval but also reduces the overall loan amount, potentially leading to lower monthly repayments and interest costs over the life of the mortgage.

Providing a larger deposit means you're more likely to have attractive mortgage terms, but it's not strictly necessary.

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Will Mortgage Lenders Accept Income Paid in a Foreign Currency?

Do Mortgage Lenders Accept Income From Commission and Bonuses?

Yes, mortgage lenders do accept income from commission and bonuses, but they typically scrutinise these sources of income more closely than regular salary. Lenders prefer stable and predictable income, so they may require a track record of earning commissions and bonuses over two to three years to ensure consistency.

They will usually average the income from these variable sources over the specified period to determine an acceptable figure for mortgage calculations. Additionally, lenders may apply a "haircut" to commission and bonus income, considering only a percentage of it to account for its variable nature.

Documentation, such as detailed payslips and tax returns, will be necessary to verify this income. Working with a mortgage broker can help identify lenders who are more flexible and experienced in considering commission and bonus income.

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What Are the Monthly Payments on a £1 Million Mortgage?

The answer will vary dpeending on your mortgage and individual circumstances, but assuming you have a 25-year term with a fixed interest rate of 4%, the monthly repayments would be approximately £5,278. If the interest rate is higher or the term shorter, the monthly repayments would increase. Conversely, a lower interest rate or a longer term would reduce the monthly payments.

It’s essential to shop around for the best mortgage deals and consider speaking with a mortgage broker to understand the options and find a rate and term that suits your financial situation.

Can I Afford a Million Pound House?

Use our free million pound mortgage calculator to see how much your property finance could cost.

A mortgage calculator is a valuable tool for anyone planning to purchase property, as it provides a clear estimate of potential monthly repayments based on factors such as loan amount, interest rate, and term length. By adjusting these variables, you can explore different scenarios and understand how changes in interest rates or deposit size might impact your finances.

It can also help you assess affordability so you don’t overextend your budget. For complex mortgages, such as million-pound loans or high net worth cases, a calculator offers an initial insight into costs, making it easier to approach lenders or brokers with confidence.

Compare rates and get an instant quote using our online mortgage calculator

How Much Stamp Duty Do You Have To Pay on a £1 Million Pound House?

As of 2024, the stamp duty on a £1 million house in the UK is calculated using a tiered system. For a primary residence, the stamp duty rates are 0% on the first £250,000, 5% on the portion from £250,001 to £925,000, and 10% on the portion from £925,001 to £1.5 million.

For a £1 million house, this results in £0 for the first £250,000, £33,750 for the next £675,000, and £7,500 for the remaining £75,000. The total stamp duty payable would be £41,250. If the property is an additional home or a buy-to-let, an additional 3% surcharge applies to each tier, resulting in higher stamp duty costs.

Is It Worth Getting a Mortgage With a Private Lender?

If you’re a high net worth individual who could benefit from the unique advantages offered by private lenders, it’s certainly possible that you may find mortgage deals with traditional lenders less favourable than an option with a suitable private bank.

Some of these advantages include:

Flexible Approval Criteria - Private lenders often have more lenient requirements compared to traditional banks, making it easier for individuals with poor credit, irregular income, or unique financial situations to qualify.

Faster Approval Process - Private lenders typically have a quicker and less bureaucratic approval process, allowing for faster access to funds, which can be crucial in competitive real estate markets or urgent financial situations.

Customised Loan Terms - Borrowers can often negotiate more personalized terms with private lenders, such as interest rates, repayment schedules, and loan structures, tailored to their specific needs and circumstances.

Accessibility for Self-Employed Individuals - Private lenders may be more accommodating to self-employed individuals or those with non-traditional income sources who might struggle to meet the strict documentation requirements of traditional banks.

Investment Opportunities - For real estate investors, private mortgages can offer the necessary capital for property investments, including fix-and-flip projects or rental properties, where traditional financing might not be available or practical.

Less Stringent Property Requirements - Private lenders might be more willing to finance properties that do not meet the strict standards of conventional lenders, such as fixer-uppers or non-standard properties.

There are some cases, where, despite significant wealth, income or assets, you might find that high street banks won’t offer you a favourable deal if your income structure or circumstances have a level of complexity.

In many cases, this is simply because high street banks are designed to process specific income types and if you situation is different, despite being in a position to afford a mortgage, these banks won’t necessarily have the facilities to recognise this.

A private lender will be able to take a more holistic approach to your wealth, and can get a clearer overview of your circumstances, offering you a product tailored to your unique financial situation.

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Can I Get a Million Pound Mortgage if I Live Overseas?

You can absolutely obtain a million-pound mortgage in the UK even if you live abroad. Many UK lenders offer expatriate mortgages specifically designed for British citizens and foreign nationals living overseas.

By demonstrating a stable and substantial income, providing a significant deposit (often 25% or more), and maintaining a good credit history, you can meet the necessary criteria. These mortgages can be used for investment purposes or as a second home, giving you flexibility.

Working with a mortgage broker who specialises in international lending can make the process smoother, helping you navigate specific requirements and find great deals. Embrace this opportunity to invest in property in the UK while enjoying life abroad.

How Do I Secure a Large Mortgage Over a Million Pounds?

Whether you are refinancing or buying a new property for residential or investment purposes, a lender's criteria will depend on several factors.

If you have a standard employed income that supports repayments, that opens up a large range of lenders.

More complex income, e.g. where you are self-employed or where income comes from more than one source, e.g. foreign income or company retained earnings, may require a different approach.

Many lenders are comfortable structuring a large loan mortgage over £1 million where a high percentage of overall income is made up of bonuses and dividends - lenders will typically look at your requirements on a case by case basis.

As well as existing properties, other assets such as personal pensions and listed security investment portfolios can be taken into account when determining the level of finance you can access.

Contact us to discuss your requirements on 0203 900 4322 or book a call-back at a time that suits you.

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