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Getting a £2 Million Mortgage

Is it possible to take out a mortgage for £2,000,000? Find out here.

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No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: December 31, 2021

There are a number of lenders who may agree to a £2 million mortgage, but like with any large loan, there is often strict criteria to meet and it isn’t always clear how to get the best deal.

If you’re looking for a £2 million mortgage, you’ve come to the right place. In this guide, we explain how to get one, what the monthly payments will be and where to get advice from a broker who specialises in large mortgages.

 

How much does a two million pound mortgage cost?

The cost of a £2 million mortgage can vary significantly between lenders as each one will offer differing rates and terms based on your own financial and personal circumstances. For example, lenders will check your affordability based on factors such as credit history, income, and any existing debts.

In addition to this, the amount you will pay on your monthly repayments will depend on:

This can make it difficult to predict the exact cost of a £2 million mortgage, but we’ve included the table below to give you an idea of possible mortgage repayments, based on an interest rate of 3.5% for example purposes.

Mortgage Term Repayment Mortgage Interest-Only Mortgage
15 Years £14,301 £5,839
20 Years £11,602 £5,839
25 Years £10,016 £5,839
30 Years £8,984 £5,839
35 Years £8,270 £5,839

The above is for indicative purposes only and you should always check with your lender or one of the advisors we work with for the most up-to-date information. 

Additional costs to factor in

In the excitement of applying for a mortgage, some borrowers can forget to include the various other costs that are associated with buying a property.

A good tip is to include these costs when calculating your affordability for a £2 million mortgage.

These may include:

  • Valuation fees
  • Solicitor fees
  • Arrangement fees
  • Booking fees
  • Insurance costs
  • Stamp duty

How much income will you need?

The majority of lenders will focus heavily on your income, looking at how much you earn and applying a multiple of that figure to determine your affordability for a £2 million house mortgage. Within these parameters, each lender will apply their own specific criteria when assessing affordability.

For example, one lender may conclude that they will loan 4.5 x an applicant’s income whereas another may be more generous and offer loans up to 5 x.

In fact, there are even a handful of mortgage providers that will consider offering loans as high as 6 x earnings, although this would only be in exceptional circumstances.

This means that whether you’re looking for a 30-year mortgage on a £2 million or even a £2.4- £2.5 million property, the total sum you can borrow could vary significantly.

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If your current income is in excess of £300,000 the table below gives you an idea of the maximum you may be able to borrow.

Total Earnings 4.5x Salary 5x Salary 6x Salary
£300,000 £1,350,000 £1,500,000 £1,800,000
£400,000 £1,800,000 £2,000,000 £2,400,000
£500,000 £2,250,000 £2,500,000 £3,000,000
£750,000 £3,375,000 £3,750,000 £4,500,000
£1,000,000 £4,500,000 £5,000,000 £6,000,000

The above is for indicative purposes only and you should always check with your lender or one of the advisors we work with for the most up-to-date information.

If you were to apply for a £2 million mortgage, you may need an annual salary of £450,000 based on 4.5x income.

This could allow you to apply for a mortgage of £2,025,000, although if your lender allows you to borrow 5x your salary, then your income would need to be £400,000.

Lenders may also wish to look at your income versus your outgoings, to determine whether you can afford the mortgage repayments on a two million pound mortgage as well as any other expenses or debts you may have. A mortgage advisor can calculate this on your behalf before you apply.

Knowing the amount of mortgage that you can afford ahead of applying can reduce the chances of a mortgage rejection. 

How your income type might affect your application

It’s most often the case that individuals who earn enough to afford a £2,000,000 mortgage have complex income arrangements in order to be more tax efficient.

It’s always recommended to have one of the expert brokers we work with go through your income as every lender has their own rules around income types so you could find two different lenders willing to offer you vastly different amounts.

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Getting a £2 million commercial mortgage

Commercial mortgages for this amount are available, although you will be subject to lender’s criteria. You should also give thought into what type of commercial mortgage you require as there are two types.

Owner-occupier mortgages are used to buy property that will serve as a trading premises while commercial investment mortgages are typically used to invest in commercial property (often to let out for a profit).

Your eligibility for a £2 million commercial mortgage will depend largely on your own financial circumstances although lenders will also want to know the purpose of your business, any debts associated with the business, your outgoings, and how many employees you have.

All of this information will help a provider build a picture of how much you can afford to pay in monthly repayments for a commercial mortgage.

Get matched with the right mortgage broker

Still unsure about how to get a mortgage for £2 million? That’s understandable! High-net-worth mortgages can be confusing, especially if you have never applied for one before.

But the good news is that we work with brokers who specialise in large mortgage amounts, high net worth customers and private lenders. Speaking to the right advisor before you apply could save you time and money in the long run, and we can introduce you to your ideal broker for free.

We offer a complimentary broker-matching service that will quickly assess your needs and circumstances to pair you with the advisor who’s best positioned to get you a great deal on a £2 million mortgage. Call us today on 0808 189 2301 or make an enquiry to get started today.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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