Million Pound Mortgages

Large Mortgage Loans for UK Property.

Fox Davidson work with private banks and large loan lending teams at UK mainstream mortgage lenders to secure     £1 million pound plus mortgages. We understand the intricacies of complex income and complex property types and are a leading UK mortgage broker for large loans. Since 2013 we have helped clients to secure funding against main residence, second homes and against property investment portfolios across the UK. 

The Large Loan Lenders.

The mortgage lending landscape for loans of £1 million plus is catered for by private banks and large loan lending teams within specialist high street lenders. Over the last 20 years, our advisors have developed relationships with lenders that specifically cater to large loans. In this article, we look at the features of million-pound-plus mortgages and also the ways in which Fox Davidson can tailor bespoke solutions for high-net-worth clients funding high-value property in the UK.

Affordability

Mortgage lending is possible up to 6 x annual income. For employed clients, we can utilise total compensation including bonuses and vesting stock, investments, and property income. Large loan mortgage lenders will allow us to present a holistic view of an applicant’s financial position including all liquid and non-liquid assets. 

• Utilising net profits for Ltd company directors

Working with Ltd company shareholders and directors (20% plus shareholding) we are able to secure lending working from gross profit plus salary. We do not limit lending to income drawn from dividends. This allows us to secure mortgages much greater than traditional banks which typically only take in account account salary and dividends. 

• Vesting and RSU income

Our lending partners will take a view of a client’s vesting stock and RSU income. 

• Foreign Income

All income sources including income paid in a foreign currency are considered for affordability purposes. Some lenders may apply a currency fluctuation haircut to foreign income. 

Loan to value. 

Large mortgage loans will often have a tapering maximum loan to value. The loan to value will reduce as the loan increases. The lenders we work with will comfortably lend multi-million loans at 90% loan to value, but this reduces as the loan size increases.

For property portfolios, we can secure a constant 75% loan to value with no upward limit on the loan amount. 

• Lombard loans

Using our preferred private bank lenders, we can secure Lombard loans secured against an investment portfolio. 

Flexible Repayment Options.

It is important to have the option to repay a loan without penalties or to place a portion of a mortgage on an interest-only basis, especially for clients with other means of repaying the debt. 

Interest-only loans can be utilised up to 90% loan to value with the right method of repaying the loan at the end of the term. When using the sale of the subject property the typical maximum loan to value is 65% of the property value with any additional lending having to be placed on a capital and interest basis. 

For clients that like to hedge, we can offer multiple products in one mortgage. Part of the mortgage may perhaps be fixed for a period and the remainder placed on a floating rate. Lenders’ floating rates typically track overnight SONIA or Bank of England base rate. The advantages of a base rate tracker are clear in a falling rate environment, but these products also carry nil early repayment charges. 

• Offset Mortgages

We can facilitate million pound plus mortgages on an offset mortgage basis. An offset mortgage allows one to offset their savings balance against the mortgage balance. Interest is only paid on the net balance. An offset mortgage can be set up in one of two ways, to reduce the monthly interest payments or to reduce the term. 

Complex property 

Fox Davidson specialises in securing large mortgage loans on complex property types. We work with clients to secure funding on property with large acreage, equestrian facilities and outbuildings. Other complex property types include properties with short leases and complexities in the property title. 

International clients

High-value loans are not just available to clients living in the UK. Large mortgage loans are available to foreign nationals living outside of the UK as well as British expatriates. Consideration is given to a client’s source of earnings and their country of residence. 

Working with Fox Davidson. 

Fox Davidson work with global clients to secure large mortgage loans on UK property and with offices in London and Bristol, we can facilitate in-person meetings by appointment but typically work by phone, email, and webchat.

Our personalised service offers clients a dedicated mortgage broker, paraplanner and a case manager. Our team of mortgage specialists will take you from enquiry to draw down of funds, managing every aspect of the process. 

Since 2013 we have worked with specialist large loan lenders located across the country and our relationships with these banks allow us to discuss the merits of each case in person. Because of these relationships we have managed to secure funding where others had not been able to.  

To discuss million pound plus mortgage lending with one of our consultants please do get in touch. We look forward to working with you.