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Getting a Mortgage for £1,500,000

See how you could secure a £1.5 million mortgage and take a look at the monthly repayments

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No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: December 31, 2021

Mortgages worth £1.5 million and upwards are not uncommon, but there is more than one way to get one, and securing the best deal isn’t always straightforward.

To clear up any confusion, we’ve put together this guide to £1.5 million mortgages. Here, you’ll learn how to get one, what the monthly repayments will be and where to get professional advice from a broker who specialises in large mortgages.

Can you get a £1.5 million mortgage?

Yes. Assuming you meet the eligibility and affordability criteria for this mortgage amount, there are a range of lenders who can offer a loan of this size. For mortgages over £1 million, some borrowers turn to specialist lenders, ones who operate privately, away from the high street.

If you are classed as a high net worth individual – i.e. have an annual net income of £300,000 or assets worth £3 million or more – you may qualify for a bespoke deal from a private lender.

Most private lenders are not accessible to the general public, so you will need to use a specialist broker to apply for your mortgage with one of them.

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What will the monthly repayments be?

This all depends on many factors such as the interest rate, the term of the mortgage, the amount of deposit you have and whether you opt for standard repayment or interest-only mortgage.

For instance, the monthly repayments on a £1.5 million mortgage can vary as much as £6,347 a month depending on a number of factors. The monthly payments below are based on a loan of £1.5 million and an interest rate of 3.5%.

Mortgage Term Repayment Mortgage Interest Only Mortgage
15 years £8,702 £4,379
20 years £7,512 £4,379
30 years £6,738 £4,379
35 years £6,202 £4,379

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.

Other costs and fees to factor in

Every lender is different, taking into account their own loan to value guidelines, interest rates and a range of other factors when estimating the repayments for a specific amount you’re looking to borrow.

There are also additional costs and fees to factor in, including…

  • Valuation fees
  • Solicitor fees
  • Arrangement fees
  • Booking fees
  • Potential insurance costs

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How much income you’ll need

To assess whether you can afford a £1,500,000 mortgage, lenders make an initial assessment based on the size of your income and apply a multiple of that figure to reach this amount.

Regardless of the amount you want to borrow, every lender is different and uses their own criteria when assessing what mortgage somebody can afford, which means that some may be more generous than others. This criteria can become more complex with larger amounts.

Most lenders will use a multiple of 4-4.5 x earnings, some will use 5 x earnings and a few will go as high as 6 x earnings. 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 x salary 5 x salary 6 x salary
£300,000 £1,600,000 £2,000,000 £2,400,000
£500,000 £2,000,000 £2,500,000 £3,000,000
£750,000 £3,000,000 £3,750,000 £4,500,000
£1,000,000 £4,000,000 £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.

So, for example, the income required for a £1.5 million pound mortgage based on 4x income would be £375,000, although if your lender allows you to borrow 5x your salary, then your income would need to be just £300,000.

In some circumstances – such as when the borrower is asset-rich with limited income – an income multiple may not be sufficient to secure the required borrowing. In such cases, an asset-backed mortgage solution may be more appropriate.

You can read more about asset-backed mortgages in our high net worth mortgages guide.

Eligibility criteria

Back in 2014, the Financial Conduct Authority (FCA) implemented its Mortgage Market Review (MMR). The main focus of MMR was to ensure UK lenders took greater responsibility when scrutinising whether an applicant was able to afford their mortgage repayments.

Within this review, the FCA offered guidance on borrowing requests for large amounts which required much more in-depth investigation. In addition, the MMR also clarified as to when an applicant should be categorised as a high net worth individual.

Since the introduction of MMR:

  • Any lending requests for amounts above £500,000 require closer scrutiny by a lender
  • Any applicant with annual income in excess of £300,000 and/or total net assets of £3 million will be categorised as a high net worth individual (HNWI)

As a result, if you need a mortgage for £500,000 or more, a lender will want information on your total net worth, including all assets, in addition to your income.

After reviewing your total assets, if you fall into the high net worth category a lender is able to use what is called a high net worth waiver. This allows lenders to be much more creative with repayment strategies which may include using some of these assets in order to approve your mortgage.

Deposit requirements

The amount of deposit you have has a very strong bearing on both your repayments and the chances of your mortgage being approved.

Lenders will be looking at your loan to value (LTV) – the lower the loan to value, the less of a risk you will be perceived, and the higher the deposit, the lower the repayments.

The repayments below show how a higher deposit on a property worth £2 million, can affect your monthly repayments. The figures are based on 3.5% over 25 years.

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Loan to Value (LTV) Deposit Repayment Interest Only
95% £100,000 £9,515 £5,547
85% £300,000 £8,514 £4,963
75% £500,000 £7,512 £4,379
50% £1,000,000 £5,008 £2,919

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.

Getting a £1.5 million commercial mortgage

Business mortgages of this amount are available if you meet the right criteria. Commercial mortgages are used when business loans, usually capped at £25,000, don’t provide the funding needed. Such circumstances might include purchasing a new property to trade from.

Commercial mortgages can be divided into two types…

  • Owner-occupier mortgages: Used to buy a property that will serve as a trading premise for your firm.
  • Commercial investment mortgages: Typically used to invest in commercial property that you might be planning to let out.

Whether you are eligible for a £1.5m commercial mortgage is a question that one of the advisors we work with can answer. They’re experts on high value commercial mortgages, have contacts with specialist lenders and can help you find the best deal.

You can find out more in our complete guide to commercial mortgages.

Get matched with the right mortgage broker

If you need a mortgage worth £1.5 million or more, it pays to seek professional advice before you get started. We work with brokers who specialise in arranging large mortgages and they have deep working relationships with the lenders who offer them, including private mortgage providers you won’t find on the high street.

We offer a free broker-matching service that will quickly assess your needs and circumstances to pair you with the broker who’s best placed to get you a great deal on a £1.5 million mortgage. Call 0808 189 2301 or make an enquiry and we’ll set up a free, no-obligation chat between you and them 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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