24 / 08 / 2021
Last updated: 8th September 2026
How Much Does a £1 Million Mortgage Cost?
A £1 million mortgage over 25 years at an illustrative 5% interest rate would cost approximately £5,846 per month on a repayment basis. The actual cost depends on the interest rate, mortgage term and whether the mortgage is repayment or interest-only. At Magni Finance, we specialise in arranging mortgages over £1 million through high-street banks, specialist lenders and private banks.
How Much Are the Monthly Repayments on a £1 Million Mortgage?
The table below shows the approximate monthly repayments on a £1 million capital repayment mortgage over 25 years at a range of illustrative interest rates.
| Interest rate | Approx. monthly repayment |
|---|---|
| 4.00% | £5,278 |
| 4.50% | £5,558 |
| 5.00% | £5,846 |
| 5.50% | £6,141 |
| 6.00% | £6,443 |
These figures are illustrations rather than currently available mortgage rates and exclude lender fees and other charges. The difference becomes significant on a mortgage of this size. At 4%, the monthly repayment is approximately £5,278, whereas at 6% it increases to approximately £6,443. That’s a difference of around £1,165 every month. You can also enter your own loan amount, rate and term into our mortgage repayment calculator to see how changing these variables affects the monthly cost.
Looking to borrow £1 million or more?
Magni Finance specialises in large mortgage loans and can assess options across high-street banks, specialist lenders and private banks. Contact Magni Finance to discuss your mortgage requirements.
How Does the Mortgage Term Affect a £1 Million Mortgage?
The mortgage term can have a considerable impact on your monthly repayments. At an illustrative interest rate of 5%, the approximate repayments on a £1 million repayment mortgage would be:
| Mortgage term | Approx. monthly repayment |
|---|---|
| 20 years | £6,600 |
| 25 years | £5,846 |
| 30 years | £5,368 |
Extending the term reduces the monthly payment, but it will generally increase the total amount of interest you pay over the life of the mortgage. The maximum term available can also depend on factors including your age, income and the individual lender’s criteria.
How Much Would a £1 Million Interest-Only Mortgage Cost?
Some borrowers taking larger mortgages prefer to arrange some or all of their borrowing on an interest-only basis. With an interest-only mortgage, the monthly payment covers the interest charged rather than repaying the £1 million capital balance. Approximate monthly payments would be:
| Interest rate | Approx. monthly interest-only payment |
|---|---|
| 4.00% | £3,333 |
| 4.50% | £3,750 |
| 5.00% | £4,167 |
| 5.50% | £4,583 |
| 6.00% | £5,000 |
At an illustrative rate of 5%, for example, a £1 million interest-only mortgage would cost approximately £4,167 per month, compared with approximately £5,846 on a 25-year repayment mortgage. However, with interest-only borrowing, the £1 million capital balance remains outstanding and needs to be repaid separately. Lenders will therefore want to understand your repayment strategy. Depending on the lender and your circumstances, this might include investments, sale of property or other assets. Interest-only structures can be particularly relevant for larger mortgages and high-net-worth borrowers who want greater flexibility over their cash flow.
What Income Do You Need for a £1 Million Mortgage?
There is no single salary required to obtain a £1 million mortgage. As a simple illustration:
| Income multiple | Approx. qualifying income for £1m borrowing |
|---|---|
| 4.5x income | £222,222 |
| 5x income | £200,000 |
| 5.5x income | £181,818 |
These are illustrations only. Mortgage affordability is more complicated than simply multiplying your salary by a particular figure. Lenders will consider your income alongside existing mortgages, loans, credit commitments, dependants, regular expenditure and other financial commitments. Different lenders can also arrive at significantly different borrowing figures for the same applicant. For larger loans, certain lenders may take a more individual approach to affordability, particularly where the borrower has a high income, substantial assets or more complex financial circumstances.
Can You Get a £1 Million Mortgage With a Bonus?
Yes. Bonus income can often be included when assessing mortgage affordability. This is particularly relevant to borrowers working in industries such as banking, private equity, hedge funds, law and other professions where variable remuneration can represent a significant proportion of total earnings. However, lenders don’t all assess bonus income in the same way. One lender might average bonuses over a particular period, while another could use a proportion of the latest bonus. Similar differences can apply to commission, overtime and other variable income. This means lender selection can make a substantial difference to borrowing capacity for applicants whose basic salary represents only part of their total remuneration.
Can Self-Employed Borrowers Get a £1 Million Mortgage?
Yes. Company directors, partners and other self-employed borrowers can obtain mortgages of £1 million or more. One of the key considerations is how the lender calculates income. A company director, for example, might take a relatively modest salary and dividends while retaining substantial profits within their company. Some lenders assess affordability primarily using salary and dividends, while others may be willing to consider the applicant’s share of company profits. Consequently, two lenders looking at exactly the same company accounts can potentially reach very different conclusions about how much they are willing to lend. This is one of the areas where understanding individual lender criteria can be particularly valuable.
What Deposit Do You Need for a £1 Million Mortgage?
The deposit required depends on the property value and the maximum loan-to-value (LTV) available. For a £1 million mortgage, examples would be:
| Loan-to-value | Approx. property value | Deposit/ equity |
|---|---|---|
| 80% LTV | £1,250,000 | £250,000 |
| 75% LTV | £1,333,333 | £333,333 |
| 70% LTV | £1,428,571 | £428,571 |
| 60% LTV | £1,666,667 | £666,667 |
The actual LTV available will depend on the lender, property and applicant. A lower LTV can also provide access to different mortgage products and potentially more competitive pricing.
Which Lenders Offer £1 Million Mortgages?
A common misconception is that borrowing £1 million automatically requires a private bank. Depending on your circumstances, mortgages of £1 million or more can potentially be arranged through high-street banks, building societies, specialist lenders and private banks. For a straightforward employed applicant with sufficient income, a mainstream lender may provide a competitive solution. Where income or wealth is more complex, a private bank mortgage may provide greater flexibility. Private banks can sometimes take a broader view of a client’s assets, income and overall financial position. The important point is that the lender should fit the borrower — not simply the size of the mortgage.
Need a £1 million+ mortgage?
We can compare mainstream, specialist and private-bank options based on your individual circumstances. Speak to Magni Finance.
What Do Lenders Look at for a £1 Million Mortgage?
As mortgage amounts increase, underwriting can become more detailed. Depending on your circumstances, lenders may consider:
- Complex income, bonuses and variable remuneration;
- Self-employed income and company profits;
- Existing property and borrowing commitments;
- Deposit, loan-to-value and property profile;
- Assets, investments and wider wealth; and
- Repayment strategy for interest-only borrowing.
For high-net-worth borrowers, lenders may consider the wider financial picture rather than income alone. This can include assets, investments, business interests and future liquidity. You can read more about how these cases may be approached on our high net worth mortgage page.
Are Mortgage Rates Higher on £1 Million Mortgages?
Not necessarily. Borrowing £1 million does not automatically mean you will pay a higher mortgage rate. The rate available will depend on factors including the lender, loan-to-value, mortgage type, product and your individual circumstances. Some mainstream lenders offer their standard mortgage products on larger loans, subject to their maximum loan sizes and lending criteria. However, even a relatively small difference in interest rate becomes significant when borrowing £1 million. This makes it important to compare not only the headline rate but also arrangement fees, mortgage term, flexibility and the overall cost of the mortgage.
Should You Use a Mortgage Broker for a £1 Million Mortgage?
You can approach lenders directly, but larger mortgages can benefit from a more targeted approach. Different lenders can assess the same borrower very differently, particularly where an application involves bonuses, company profits, investment income, interest-only borrowing or substantial assets. A large mortgage broker can assess how different lenders are likely to approach the case and compare mainstream lenders with specialist and private-bank options. Magni’s large-mortgage service specifically focuses on high-value borrowing and complex income structures.
Speak to Magni Finance About a £1 Million Mortgage
Magni Finance is a London-based mortgage broker specialising in large and complex mortgage loans above £1 million. We work with high-street banks, specialist lenders and private banks. Whether you’re purchasing a property, remortgaging an existing home or need a mortgage involving complex or variable income, we can assess your circumstances and explain the options available.
Considering a mortgage of £1 million or more?
Contact Magni Finance or call 0207 046 7847 to discuss your requirements.
Your home may be repossessed if you do not keep up repayments on your mortgage.
