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A Guide to £3 Million Mortgages

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

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: May 31, 2022

Mortgages of £3 million and over aren’t as easy to come by as loans of lower amounts as some lenders have a cap on the maximum amount they’re able to offer.

If you’re in need of a mortgage worth this amount, you’ve come to the right place. In this guide, you’ll learn how to qualify for a £3 million mortgage, how much the repayments will be, and where to find a broker who specialises in large mortgages.

Can you get a £3 million mortgage?

Yes, although not all mortgage lenders offer loans for this amount. Some have lending caps in place that prevent them from offering mortgages of £3 million or more, but with the right advice, there are options available if you can afford such a large mortgage.

Although some mainstream mortgage lenders can stretch to loans of this size under the right circumstances, there are also private mortgage lenders available for customers who qualify for high net worth mortgage exemption. These lenders are often willing to offer bespoke deals for qualifying customers, but many of them only operate through brokers.

With this in mind, the best way to get a mortgage worth £3 million or more is to use a broker who specialises in large mortgages. They will have access to every willing lender, including ones you won’t find on the high street.

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How much will the repayments cost?

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

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
  • A mortgage broker on your side to negotiate the best deal for you

Other costs to factor in

The total 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).

How much income will you need?

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.

If you qualify for high net worth mortgage exemption, however, usual lending rules may not apply, and it could be possible to take out a mortgage based on more than six times your income.

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

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 without the help of a broker.

You can read more about mortgage eligibility in our complete guide to mortgage applications.

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How much deposit you’ll need

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.

Interest-only mortgages

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.

Get matched with a broker who specialises in £3m mortgages

The best way to avoid falling afoul of lending caps and securing a mortgage worth £3 million or more is to apply through a broker who specialises in large mortgages.

There are brokers in our network who specialise in mortgages of this size, and they have the knowledge, expertise and lender contacts to help you get the best deal, whether that’s from a high street lender or a private mortgage provider whose products are only available through brokers.

Call us today on 0808 189 2301 or make an enquiry and we’ll set up a free, no-obligation chat between you and your ideal mortgage broker today.

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.

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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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