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£3,000,000 Mortgages

See how expert advice and guidance could help secure a £3million mortgage

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 20, 2021

As residential property continues to increase in value, we’re hearing from more and more customers who are looking to secure a £3 million mortgage, or perhaps more. Many have been turned down as some lenders are scared off by requests for large mortgage loans, but others can be more generous in the right circumstances.

The advisors we work with have experience of successfully arranging mortgages of all sizes, so they already know which lenders are comfortable working with high net worth borrowers. They also have access to the whole market, including some more bespoke products that aren’t available to the general public.

In this article, we’ll cover the basics of arranging a mortgage of £3,000,000 or higher.

How much does a £3000,000 mortgage cost?

The amount you’ll pay over the course of a £3+ million mortgage will depend on factors such as the interest rate you’re offered, lender’s fee structure, the value of your property, any overpayments you make and the term length. Every lender is different, so it’s impossible to put an exact figure on the cost, but you’ll usually need to cover the following upfront costs first:

  • Arrangement fee (if applicable)
  • Valuation fee
  • Solicitors’ fees
  • Insurance
  • Deposit
  • Survey

Once these are settled, the ongoing costs in the form of monthly repayments will depend on the specific deal you are offered by the provider, as well as the type of mortgage product you choose (variable, fixed, repayment etc).

Repayments on £3 million mortgage

The exact repayments on a £3m mortgage is determined most directly by the interest rate as well as the term of the mortgage. A £3 million mortgage is a large amount by most standards, and generally speaking the larger the loan, the higher the interest rate, so you can expect rates to come in on the higher side.

As the table below shows, £3 million mortgage payments can be as much as £21,451 per month, based on an interest rate of 3.5%:

Mortgage Term Repayment (per month) Interest Only (per month)
15 years £21,451 £8,758
20 years £17,404 £8,758
25 years £15,024 £8,758
30 years £13,477 £8,758
35 years £12,404 £8,758

However, you are more likely to qualify for the best rates on the market if you have:

  • A clean credit record
  • large deposit
  • Proof of regular, ongoing salaried income
  • A property in good condition and of standard construction type

To speak to an expert for the right advice on getting the best rates, don’t hesitate to call us on 0808 189 2301 or leave us a message.

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What salary do I need for a £3 million mortgage?

Each mortgage provider will have its own criteria for assessing affordability, but most will base their calculation on your annual income, and multiply it by a fixed amount. This will typically be 4.5 x earnings, but can be 5 x earnings and may be as high as 6 x earnings, though this is less likely when the amount being borrowed is a larger sum.

As the table below illustrates, a salary (or combined salary if you’re applying for a joint mortgage) of at least £500,000 per annum will normally be required for a £3 million pound mortgage at the highest possible multiple:

Total earnings 4 x salary 5 x salary 6 x salary
£500,000 £2,000,000 £2,500,000 £3,000,000
£600,000 £2,400,000 £3,000,000 £3,600,000
£700,000 £2,800,000 £3,500,000 £4,200,000
£750,000 £3,000,000 £3,750,000 £4,500,000
£1,000,000 £4,000,000 £5,000,000 £6,000,000

Income multiples are not the full picture, however, and most lenders will take a broader view than just your payslips when working out how much you can afford to borrow.

Eligibility criteria for a £3 million mortgage

In addition to your salary, lenders will look at factors such as:

Each lender will have its own policy on the issues listed above. For example, some will only accept self-employed income if you have enough records to show proof of earnings and an ongoing income stream. But as a general rule the more ‘non-standard’ aspects to your mortgage application there are (e.g. self employed income, non-standard property types), the harder it will be to find a willing lender.

If you feel your application may be impacted by any of the issues above, the specialist advisors have experience of arranging mortgages for high net worth borrowers in a wide range of circumstances.

What deposit do I need for a £3,000,000 mortgage?

Most lenders apply stricter criteria when assessing larger mortgage applications, and this usually applies to the deposit, too. Of those lenders that offer mortgages upwards of £1 million, the vast majority require a deposit of at least 20%, which would amount to £600,000 if you are looking to raise a mortgage of exactly £3 million.

However, in the right circumstances, a specialist high net worth lender may be able to offer mortgages of up to 95% loan-to-value (LTV), equivalent to a deposit of £150,000. This is usually only possible in cases where other assets are included in the calculation but could be an option for those with a healthy property portfolio.

Can I get a mortgage on a 3 million pound house?

If you are looking to purchase a property which is itself valued at £3m, a ‘typical’ mortgage would be somewhere between £2,400,000 and £2,700,000, and the rest would need to be provided by your deposit of £300,000 or more.

Can I get a mortgage on a £3.5 million house?

For properties valued at £3.5 million, a £3.5 million house mortgage at 80% LTV would require you to borrow £2,800,000, with a deposit of £700,000.

Can I get an interest only mortgage on £3 million?

Yes, it’s sometimes possible to arrange a £3,000,000 mortgage on an interest-only basis under the right circumstances, but you will need to meet certain criteria and find a lender who is willing to offer high net worth mortgages on this basis.

Speak to an expert on mortgages for £3 million and above

If you have any additional questions about high net worth mortgages around the £3 million mark and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry.

We will then make it our mission to pass you on to the broker with the most suitable expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

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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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