Mortgage One:
The Large Mortgage Experts

A Guide to Securing Large Mortgage Loans

For buyers of high-end properties, obtaining a large mortgage can be more challenging, but with the right advice, it’s achievable. Whether you’re struggling due to affordability or lender restrictions, this guide will explain how large mortgages work and how to navigate the process.

What is Classed as a Large Mortgage?

A large mortgage is typically defined as one worth £1 million or more. Many high street lenders may have a cap on how much they can offer, even if you meet all affordability requirements. For mortgages of this size, specialist mortgage providers or private lenders often offer the best deals, usually accessed through brokers who have established relationships with these lenders.

Are Large Mortgages More Difficult to Get?

While the application process for large mortgages is the same as for smaller loans, fewer lenders are willing to approve multi-million-pound mortgages. Many mainstream lenders set caps on how much they’re willing to lend. Therefore, the key to securing a large mortgage is working with a broker who specialises in high-net-worth clients. This approach ensures that you find the right lender from the start, avoiding unnecessary credit checks and potential refusals, which can harm your credit score.

How to Get a Large Mortgage

The steps to securing a large mortgage are similar to those for smaller loans, including a thorough assessment of your affordability. Lenders evaluate your income, creditworthiness, and deposit. However, because fewer lenders are available for loans of this size, the chances of being declined or getting less favourable rates are higher. Speaking with a broker who specialises in large mortgages is crucial, as they can guide you to the most appropriate lenders for your situation.

Large Mortgages with Low Deposits

Most lenders base their lending limits on loan-to-value (LTV) ratios. The higher the deposit you can provide, the more flexibility you’ll have when applying for a large mortgage. For example, some lenders may cap the loan amount at £500,000 for a 90% LTV mortgage, but they might offer £1 million at 75% LTV. Brokers specialising in large loans can help you find lenders willing to consider higher LTVs for large mortgages, giving you more borrowing power.

Affordability Criteria

Affordability is a critical factor in obtaining a large mortgage. Lenders typically offer 4.5 to 5 times your annual income for mainstream mortgages, but some specialist lenders can stretch this up to 6 times for high earners. For limited company directors, many lenders will only consider salary and dividends, which can be a disadvantage if you leave profit in your business. Specialist lenders, however, can assess your income based on your share of the business’s net profit, improving your chances of securing a large loan.

Mortgage One - The Large Mortgage Specialist.

To maximise your chances of approval for a large mortgage, working with the right broker is essential. Mortgage One is a specialist broker highly experienced in dealing with high-net-worth clients, ensuring you get the best possible rates and terms for your mortgage.