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.
Taking advantage of prime property
The low-interest rate environment has made prime property mortgages accessible to a growing number of buyers.
Based on the performance of the PCL real estate market, it seems as though demand for this type of home loan will continue to rise as buyers seek to take advantage of the capital growth and in some cases, the rental yields on offer.
Applying for a £1m-plus mortgage should not be a difficult or complicated process if approached correctly.
In my experience, it all comes down to choosing the right lender and finding the right type of prime property mortgage best suited to the borrower’s needs.
Doing so will reduce the borrower’s chances of rejection.
Alpa Bhakta is the chief executive of Butterfield Mortgages
