Use our million-pound calculator to discover how much a high net worth mortgage will cost you.
Whether you require a 1 million pound mortgage or a 2 million pound mortgage (plus), the mortgage market is abundant with options. Million-pound mortgages used to be the forte of private banks. The current market for high net worth mortgages has expanded to include high street banks and specialist ‘challenger’ banks.
Use our 1 million pound mortgage calculator to discover what your repayments will be, both on an interest-only basis and on a capital and interest basis.
Interest-only million-pound mortgages
Interest-only mortgages are possible up to 85% loan-to-value. The mortgage lender will require a borrower to have assets to repay the loan.
Assets can include property, stocks and shares and employee bonuses.
An interest-only mortgage allows for reduced monthly payments but the capital will still need to be repaid at the end of the term.
What salary do I need for a million-pound house?
The maximum income multiple across many mortgage lenders is 5 times income. Therefore, you would need a salary of £200,000 to afford a million-pound house.
Lenders will need you to contribute a deposit, usually at least 10% for a million-pound property. Therefore, for a loan of 90% (£900,000) you would require a salary of £180,000.
The mortgage may be set up on an interest-only basis. Interest-only loans will cost less per month, but the capital must be repaid at the end of the mortgage term.
Buy-to-let mortgage over £1 million
There are multiple lenders offering buy to let mortgages over £1 million. The mortgage can be achieved in several ways.
Usually, a buy-to-let loan is determined by the rental income. For buy-to-let mortgage loans over 1 million pounds, we can also utilise a client’s income. For high net worth clients with a large income, a multi-million-pound buy-to-let mortgage is easily achievable.
If you are a professional landlord and do not show a large net income, then the loan is dependent on the rental income alone. Rental income is annualised, and various calculations are used to achieve a loan amount of over a million pounds.
Using a broker for high net worth mortgages
Fox Davidson property consultants specialise in high net worth mortgages. Whether you require finance for a property to live in, for business premises or as an investment, we can help. Our clients include individuals, businesses and offshore structures.
Our relationships are very strong with private banks, high street banks and new to market challenger banks. We can structure high net worth mortgages in a fashion to suit your requirements. All advice is provided on a face-to-face basis or by phone and email, at your convenience.
What is a high net worth mortgage customer definition?
A high net worth mortgage definition is a client earning over £500,000 with over £3 million pounds in assets.
Assets may be held onshore in the UK or based offshore. Assets may include property or stocks and shares.
Million pound mortgages are cheaper than ever
Million-pound mortgages are now considerably more mainstream than 10 or even 5 years ago. Interest rates have gone down to record lows in 2020 and therefore million-pound mortgages are cheaper than ever. Coupled with the option of an interest-only mortgage option, you may be surprised at how affordable a large mortgage loan is.
To discuss your high net worth mortgage requirements with a mortgage broker please do contact us using the enquiry form below or email us in confidence using email@example.com.