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5 million mortgage

Author: Myles Robinson - Expert Finance Advisor

Posted: Jun 22, 2022

5 million mortgage loans and lender criteria

It can be difficult to secure a mortgage for more than £5 million. Although most mainstream lenders won’t be able to provide a 5 million mortgage, we have a private mortgage lender that specialises in high-net-worth individuals.

This article will explain how to get a mortgage for £5 Million or more. It also explains how to find the right lender.

Contact us today here for mortgage advice on over a million-pound mortgage. Or use our mortgage calculator below:

 

 

Can you get a £5 million mortgage loan in the UK?

It might be difficult to obtain a mortgage for this amount on the high streets as many lenders have loan limits that prohibit them from lending loans exceeding £5 million. However, there are private mortgage providers lending who do not have such restrictions.

Private mortgage lenders specialise in high-net-worth individuals who require mortgages that are larger than those available on the high streets. The right lender will offer you a customized deal if you meet the affordability requirements for a £ 5 million mortgage.

It is important to remember that private lenders are difficult to locate and approach without the assistance of a mortgage broker. Our network has advisors who only work with high-net-worth clients and have strong working relationships with mortgage providers.

How do you find the right lender for a £5 million mortgage?

We work with high-net-worth mortgage brokers who will help you do this! They are able to negotiate a customised deal with private lenders for you, knowing exactly which private lenders can offer you a mortgage of up to £5 million.

You can be sure that your broker will match you with the right lender the first time. This ensures that you are matched with the most suitable lender for you. Your advisor will match you with a lender that offers custom asset-backed mortgages if your wealth is tied up.

Send us an enquiry and we’ll match your query with a high-net-worth mortgage advisor who has all the necessary knowledge, experience, and contacts to help you find the right lender.

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Requirements for affordability and deposit

You don’t have to meet strict eligibility criteria for mortgages above £5 million. Specialist lenders are more comfortable with complex wealth situations and will tailor their offers to you. There is also room for negotiation that you won’t get with mainstream mortgage applications.

Although it is impossible to give exact figures regarding deposit requirements and loan-to-value (LTV) ratios, lenders generally expect a deposit between 40% and 50%. Borrowers have been able to get a mortgage for as high as £20 million by depositing only 35%.

The lower your rate will be, the higher the deposit you make. A broker who specializes in high-value mortgages is best to discuss your financial situation. They will be able to guide you on the best deposit value that suits your immediate and long-term financial goals.

The criteria used to determine affordability will differ depending on which provider you choose. A large mortgage may be possible if you have complex income sources such as overseas investments, dividends and commissions, offshore structures, SPVs, trusts, etc. However, you need to find a lender who will allow you to qualify.

 

What are the monthly payments?

Monthly repayments for a mortgage of 5 million will vary depending on the term length and interest rate.

Why is it so difficult to obtain a mortgage for this amount?

Finding a willing mortgage lender is the most difficult problem for anyone looking to get a mortgage larger than £5 million.

Due to the risk associated with the loan, many mainstream providers limit the amount they will lend to potential borrowers. After all, spreading the load among multiple applicants is much safer than authorising one large-sized mortgage.

Additionally, higher-value loans will require more specialist care and expertise than what you might expect from a mortgage. This means that fewer providers will be able to meet your needs.

Private banks are the best source for a high-value mortgage. Many of these can only be accessed through a mortgage broker.

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There are other factors that can affect your chances of approval

Remember that mortgages above £5 million can be tailored if you are eligible for a high net worth exemption. The lender might still consider the following factors when deciding what type of deal you are eligible for:

The ratio of loan to value (LTV).

Private lenders may have different LTV requirements and they are often determined on a case by case basis. One lender might limit the amount you can borrow to £1,000,000 for applicants with 95% LTV, £4,000,000 at 80%, and £5.5 Million at 75%.

The rates and amount you can borrow will depend on your individual circumstances. Some lenders will lend a £5m mortgage at an LTV of around 80%. This is dependent on your individual situation.

Affordability

The income multipliers are usually set at 4.5 to 6 times the salary. However, if you have a high net-worth individual it may be possible for you to borrow based on 7x your income or an even higher salary multiplier.

Bad credit

Private lenders often offer customized deals that are tailored to each individual case. This allows them to make their own rules regarding bad credit. When a mortgage provider evaluates your credit, they will likely consider whether you are eligible for a £ 5 million mortgage or not.

Visit our Bad Credit Mortgages section to learn more about how bad credit can affect your mortgage application.

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How to apply for a mortgage worth £5 million or more

These steps will give you the best chance of success with your application

Step 1. Prepare your documents

All the necessary documents for a mortgage application, such as proof of ID, income and address will be required. It is a good idea to gather all the information you need to apply for a mortgage. You don’t know what assets or income streams are acceptable to different lenders, so it’s advisable to have everything together.

Step 2. Speak with a broker

High-value mortgages are more complex than standard mortgage applications, so it is important to consult a broker before you do anything else. You will feel more informed and better equipped to make the right decision after an initial consultation.

FAQs

What is the time frame?

It all depends on the complexity of your application, but most lenders will offer you a mortgage in less than 2 weeks after receiving all documentation.

What happens if I have poor credit?

Negative credit can affect your ability to negotiate a rate or borrow the maximum amount, but it will not prevent you from getting a mortgage. A broker can help you advocate for your current wealth and future projections.

Is it possible to buy a mortgage above £ 5 million?

Yes, If you already have a portfolio of properties you can borrow against that to purchase more. Lenders will evaluate your application based on your expected rental income. This will usually be between 125% and 150% of your monthly mortgage payments.

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Are high-net-worth people allowed to buy the property or should they take out a mortgage?

A mortgage can be more advantageous than a loan, even if you have the cash to purchase a multimillion-pound property. Low rates make it affordable to carry debt.

Your savings will also retain liquidity for:

  • Family members can help each other climb the property ladder
  • Investment opportunities
  • Unexpected expenses
  • Buy a holiday home

A mortgage is a way to free up equity from a property that is worth more than £5million.

You may also get tax benefits by investing your wealth in property.

Those with high assets but a low income may be eligible for high-value mortgages. A broker might recommend private mortgages in these cases. A broker can advise you on the appropriate amount of collateral to borrow against and how much.

Match you with a broker who specialises in large mortgages

Mortgage lending of high value is a specialist and complex market. Many top providers do not have a customer-facing presence. They only deal with brokers.

We only work with experienced mortgage brokers. They will help you navigate your application, negotiate the best deal, and simplify the whole process.

Contact us today to speak with a broker.

Speak to a mortgage expert with a high net worth today

A broker who specialises in high net worth lending is the best way to obtain a mortgage for more than £5 million. This will allow you to access the whole market, including private lenders and mortgage providers with no maximum loan amounts.

Our broker-matching service is free and will match you with the best mortgage advisor to help you get a great deal on a mortgage.

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