How to Get a Million Pound Mortgage

Seven Figure Mortgages are in Easier Reach than You Think

The continuing strength of the property market means million pound houses are becoming the norm. And mortgages are growing to match

The idea of a million pound mortgage might sound like the sort of financial product that is only available to the rich and famous. But think again. There are more than 770,000 UK properties worth a million pounds or more, and the vast majority are owned by everyday hard working people.

The truth is that there is nothing extraordinary about million pound mortgages in the present landscape and there are more psychological barriers than financial ones standing between you and a house on Millionaire’s Row.

Work with a trusted broker

Any mortgage represents a big ticket purchase decision, and it is vital to carefully assess the different products on offer. Clearly, with a mortgage that runs into seven figures, this is even more important. Choose your broker with care, and he or she will help you navigate the different types of lenders that will be queueing up to offer you a million pound mortgage.

High Street banks

For most of us, the obvious place to go to get a mortgage is your high street bank, but you might think you need something a little more specialist for such a large loan. This is not necessarily the case. The banks have adapted with the property market and many conventional high street lenders are prepared to offer as much as £3 million.

The downside to this option is that they typically work on the same “check box” process for a £1 million mortgage as they do for a £100,000 one. There is usually very little room to negotiate, mortgages are generally limited to standard repayment models and they will struggle to accommodate unusual circumstances.

Still, if you have an exemplary credit rating, a sizeable deposit and a good monthly salary, the high street lenders can offer the most compelling choice, as they typically offer highly competitive interest rates.

Private banks

A private bank will offer a far more tailored, bespoke service and treats every client on a case by case basis. Private banks are not as intimidating as many people think, but they will want to engage in a full financial relationship with their clients that goes beyond simply providing a mortgage. The more closely you engage with them, for example by placing your assets or investments in their care, the better the deal you are likely to get out of them on your million pound mortgage. In this respect, they are the polar opposites of their high street counterparts. It is all about flexibility and relationships.

Building societies

Not every building society got swallowed up by the big banks in the 1990s, and there are still some specialists out there that operate in the middle ground between the above two options. Their rates are a little higher than the high streets, but they typically have more flexible mortgage products available. And signing up for one is a straightforward matter with no strings attached.

There are pros and cons to each of these types of lender, so take time to run through your financial circumstances with your advisor to understand which is likely to work best for you.