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A Guide to £5 Million Mortgages

Is it possible to get a 5 million pound mortgage? Find out here.

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No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: January 13, 2022

Securing a mortgage or £5 million or more can be difficult on the high street. Most mainstream lenders aren’t equipped to offer a mortgage of this amount, but the good news is that there are private lenders who specialise in high net worth individuals.

This article covers how to go about getting a mortgage for £5 million or more, how to find a suitable lender, and what other factors are taken into consideration before a mortgage provider will authorise an application for a loan of this size.

Can you get a £5 million mortgage?

You might find it difficult to get a mortgage of this amount on the high street as many lenders have maximum loan caps in place that prevent that from offering loans of £5 million, but there are private lenders who have no such restrictions.

Private mortgage lenders specialise in high net worth individuals who need mortgages larger than what’s available on the high street. As long as you meet the affordability criteria for a £5 million mortgage, the right lender will consider offering you a bespoke deal.

One thing to bear in mind, though: private lenders can be difficult to find and approach without the help of a mortgage broker. There are advisors in our network who work exclusively with high net worth customers, and they have deep working relationships with the mortgage providers you’d need to approach.

How to find the right lender

The high net worth mortgage brokers we work with will do that for you! They know exactly which private lenders are best equipped to offer you a mortgage of £5 million or more and they can negotiate a bespoke deal with them on your behalf.

By using a specialist broker, you can rest assured that you will be matched with the right lender, first time – one who is the best fit for your needs and specifications. For example, if your wealth is tied up in assets, your advisor will pair you with a lender who offers bespoke asset-backed mortgages.

Make an enquiry to get started and we’ll match you with a high net worth mortgage advisor who has the knowledge, experience and lender contacts that you need.

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How much will the monthly repayments be?

Monthly payments on a 5 million mortgage will depend on the term length and the interest rate, among other factors. The table below will give you an idea of what to expect for a capital repayment mortgage with an interest rate of 2%.

Term Length Monthly Payment
5 Years £87,642
10 Years £46,010
15 Years £32,179
20 Years £25,298
25 Years £21,196
30 Years £18,485
35 Years £16,567
Interest Only (Any term length) £8,340

Why is it more difficult to get a mortgage of this size?

The most common issue for those looking to take out a mortgage as large as £5 million and up is finding a willing mortgage lender.

Many mainstream providers have limits on how much money they will lend a potential borrower due to the associated risk; after all, spreading the load across multiple applicants is far less risky than authorising one large mortgage.

What’s more, higher-value loans require additional specialist treatment and expertise than you would expect with your average mortgage, meaning fewer providers are able to cater for your needs.

This leaves private banks as the most likely source of a high-value mortgage, and many of these are only approachable through a mortgage broker.

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Other factors that will affect your chances of approval

The thing to remember about mortgages of £5 million and up is that the terms and criteria can be bespoke if you qualify for high net worth exemption. That said, the following factors might still be taken into account when the lender is assessing what kind of deal you qualify for…

The loan to value (LTV) ratio

LTV requirements can vary from one private lender to the next and are usually set on a case-by-case basis. For example, one lender could cap the amount you can borrow at £1 million for 95% LTV applicants, £4 million at 80% and £5.5 million at 75% or under.

Your individual situation will play a key role as to the rates you’re offered and how much you can borrow. Some mortgage lenders may be happy to loan a £5 million mortgage at an LTV of 80% – situation dependant.

Affordability

This is usually based on income multiples capped at anywhere between 4.5 times salary and 6 times salary, but if you’re a high net worth individual, it may be possible to borrow based on 7 times your income, or based on an even higher salary multiple than this.

Bad credit

As private lenders usually offer bespoke deals on a case-by-case basis, they are free to set their own rules on bad credit. If you have a severe credit problem such as a bankruptcy or a repossession on your file, this is likely to be taken into account when the mortgage provider assesses what kind of deal you qualify for, or even whether they offer you a £5 million mortgage at all.

To find out more on how bad credit can impact your mortgage application, visit our bad credit mortgages section.

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Talk to a high net worth mortgage expert today

The best way to get a mortgage of £5 million or more is to speak to a broker who specialises in high net worth lending. This will give you access to the entire market, including lenders with no maximum loan amount and private mortgage providers.

We offer a free broker-matching service that will take your needs and circumstances into account to pair you with the mortgage advisor who’s best placed to help you land a great bespoke deal on a mortgage of this amount.

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