How to get a £1m mortgage

  • Describe some of the difficulties achieving a £1m plus mortgage
  • Identify some of the ways to improve the chances of getting a £1m mortgage
  • Describe the elements of the relationship with the lender that would improve a borrower's chances

Depending on the high street bank, mortgages of up to £10m can be arranged.

Yet given these banks do not typically deal with HNW individuals and the ultra-wealthy, it can often be difficult for them to appreciate the nuanced financial circumstances of their applicants.

This can lead to delays throughout the application process, which is not ideal given this then opens the borrower to gazumping and gazundering tactics should they be in the midst of a property transaction.

The process can also be made all the more complicated when the applicant is not a UK resident or holds no onshore assets.

Value the importance of professional customer service

According to research by Which?, there are approximately 855 residential purchase mortgages currently being advertised by banks and building societies with a maximum loan amount above £1m.

Each product has its own set of criteria, rates and requirements, which means finding the right type of mortgage is extremely important to reduce the chances of a rejected application.

However, borrowers should not let these variables alone guide their decision.

They must also consider the level of professional service on offer by the lenders.

According to a survey of over 550 UK-based HNWs, 78 per cent consider the quality of customer care a key consideration when choosing a service provider.

The same survey also found that nearly two-thirds of HNWs would pay more to a service provider or achieve lower returns if they were to receive a high quality of customer service.

Of course, all lenders will claim to provide the highest professional standard of client support, so what can borrowers do to ensure they find a lender who understands their financial circumstances and is willing to work with them to provide a mortgage tailored to their needs?

The first thing to do is meet with as many prospective lenders as possible for a preliminary discussion.

From this point, it can be quick to establish whether the lender can issue a £1m plus mortgage with the appropriate rates and conditions.

Asking them about their typical clientele will also reveal whether they have the expertise in dealing with people in similar financial circumstances.

This point is important as it goes beyond the initial application process and ensures for a transparent and collaborative relationship between the borrower and the lender.

Don’t forget the deposit

As with all types of mortgages, lenders expect a minimum deposit, which is calculated based on the value of the loan.

Again, the minimum amount depends on the size of the mortgage and the lender, but generally, the more cash that can be provided upfront, the less chance there is of the mortgage application being rejected.

For mortgages of £1m and higher, deposit expectations can range from 10 per cent to 15 per cent.