The mortgage market is going through a period of change as the price of mortgage financing rises and lenders pass on costs to borrowers.
Trinity Financial has access to a range of lenders offering £1M+ home loans and the lowest fixed rates are currently priced at around 3.39%. If you don’t think the base rate will rise in the shorter term, or if you want an early repayment deal with no fees, the Bank of England’s most competitive large loan trackers are just over 2%.
Which lenders offer the largest home loans?
HSBC Brokers has a selection of £1m+ fixed and tracked mortgages available to borrowers provided they have at least a 20% deposit. Larger two- and five-year bank repairs are the same rates if you have a 40% deposit.
Barclays for Intermediaries offers some of its cheapest rates to more affluent borrowers looking for mortgages of between £2 million and £10 million. Metro Bank also offers larger loan deals at competitive rates, although they tend to charge an arrangement fee of 0.5%.
How much does a million pounds sterling mortgage cost?
HSBC offers brokers a rate of 3.24% for property purchases and re-mortgages, which is fixed until 31 October 2027. Applicants will need a 40% deposit to qualify, and the maximum loan amount is £5 million.
After the specified period, the mortgage reverts to HSBC’s current standard variable rate of 4.29%, and there is an arrangement fee of £999. Early settlement fees apply.
“Mortgage brokers are making their money now, with several price hikes and changes in affordability,” says Aaron Strutt, product manager at Trinity Financial.
“If you want a quick mortgage offer, it is important to know which lenders to contact. Some lenders are so busy that they ask brokers not to chase them and take longer than usual to submit mortgage offers.”
Illustrative example: A principal and interest mortgage of £1,000,999 payable over 30 years, initially on a fixed rate basis until October 31, 2027 at 3.24% then the lender’s current standard variable rate of 4.29% for the remaining 25 years, would require 63 Monthly installments of £4364.58 followed by 297 payments of £4852.82. The total amount payable will be £1716,138.08 made up of the loan amount, plus interest (£274.850.54), £999 (product fee), £0 (final repayment fee), £17 (completion fee). The total comparator cost is 4% representative of APRC.
Actual price available will depend on your circumstances. Please request a personal clarification of the mortgage. Your mortgage is secured on your property. Your property may be repossessed if you don’t continue to make your mortgage payments
