Mortgages Over £2 Million

Due to house price increases, larger loans are not a rarity today. There are more options to secure a £2 million mortgage, such as through high street lenders or private banks. Many high street lenders have specialist large loan teams who can assist with mortgages above £1 million. These underwriters have experience in dealing with high net worth (HNW) clients. However, it can be difficult to find the most competitive mortgage terms alone. Fortunately, Magni Finance is an HNW broker who can help access these.

We look at a client’s overall circumstances to find the best lender. Though a mainstream lender may consider larger loans, they are unlikely to accept non-standard forms of income as they are complex and require specialist understanding. However, private banks take into account other sources of income, such as:

• Vested stock bonuses
• Stock portfolios (onshore and offshore)
• Foreign income
• Income from royalties and trusts
• Global assets

Generally, clients tend to be considered “high net worth individuals” when securing mortgages worth over £2 million in the UK. A high net worth individual, in short, is someone who earns above the threshold of £300,000 per year or someone that withholds net assets of £3 million+.

However, because Magni Finance has over two decades of experience dealing with various clients and backgrounds, we can negotiate a mortgage even in the most complex of financial cases.

Magni Finance works with clients on an individual basis. Therefore, we can secure bespoke terms for a £2 million mortgage. We will always aim to provide clients with the most competitive and flexible rates all while taking into account their unique financial situation.

How much a £2 million mortgage will cost will depend on several factors, such as the size of the deposit and the complexity of the case. These will both determine whether a high street or private bank lender will be most appropriate.

The lender will run through a client’s eligibility and affordability criteria. For instance, their sources of income, credit history and any current debts will all also be taken into account to calculate the loan.

Additionally, how much deposit a client has already, as well as the term of the mortgage itself, will contribute towards the overall cost of the mortgage. Generally, the higher the deposit, the lower the interest rate. Nevertheless, clients with Magni Finance can rest assured that we always aim to provide the best mortgage terms.

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We regularly arrange £2 million+ mortgages for high net worth clients. Just with any mortgage, the deposit is often one of the most commonly asked questions and concerns for borrowers. While having more in a deposit could bring down your monthly costs, the high street banks we work with will likely require clients to have at least a 15% deposit to access a mortgage for £2 million+. However, private banks can consider as low as 5 -10% deposits.

Even if a client’s financial situation is non-conventional, or perhaps they reside abroad or are a UK based foreign national, we can still help find and access the best mortgage terms for £2 million+ large mortgage loans.

Generally, the majority of high street lenders set the maximum income multiple for large loans between 4 to 5 times an individual or joint applicant’s yearly income. However, Magni Finance can help negotiate the best terms for the right clients. For instance, a maximum income multiple of around 5.5 times an individual or joint income may be made possible. For High Net Worth clients, private banks do not cap income multiples.

Yes, many of the lenders we work alongside offer interest-only £2 million mortgages. Interest-only mortgages, in comparison to repayment mortgages, mean clients will only pay the interest back each month rather than the whole amount owed. However, once the term has finished, the remaining amount will be required to be repaid.

Interest-only mortgages are not a viable option for all clients. Furthermore, whether an interest-only mortgage is possible will depend on both the client’s yearly income as well as the lender’s eligibility and affordability criteria. To find out whether an interest-only mortgage is suitable for you, get in touch with Magni Finance.

Magni Finance has experience in securing large mortgage loans for buy-to-let properties in the UK. We have a proven track record for finding the best mortgage products for investment properties for our clients – which, our case studies are a testament to.

Buy-to-let properties are increasingly popular in the UK, as they are a great means to invest in property. They are, furthermore, viable options for high net worth clients looking for advantageous property investments.