£1m+ mortgages on the up as house prices rise

£1m+ mortgages on the up as house prices rise

The number of mortgages for £1m or more has been increasing as house prices continue to rise.

According to data from the CML, the number of mortgages for £1m or more completed in 2014 was 1,400 compared to 1,200 the previous year.

NatWest, which is owned by Royal Bank of Scotland, said it had 233 mortgage applications for more than £1m in 2014, and so far this year has had another 207.

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A spokesman said it expected to end 2015 with lending in this bracket up by 18 per cent.

Data released by the Land Registry last week showed the average property in England and Wales was worth £184,682 – an increase of 4.2 per cent on the previous year.

But this masked higher property prices in London and the south east, where the average house sold for £493,026 and £254,658 respectively.

Adviser view

Jonathan Harris, director of London-based Anderson Harris, said: “People borrowing between £1m and £2m are still quite active.

“I suspect it is a combination of a number of factors. In London and the South East a lot of people are having to pay £1m for a family home and there are sophisticated people who realise is makes sense to borrow money while rates are still low.”