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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 12th June 2020*

How to get a £5 million mortgage

Taking out a mortgage on high value property can prove problematic; how do you go about finding a provider that is willing to lend you such a large sum? And how do you prove that you have the ability to keep up with the monthly repayments?

Fortunately, the advisors we work with are experts when it comes to high value mortgages and can help you find the best deal.

This article covers how to go about getting a mortgage for £5000000, how to find a suitable lender, and what other factors which are taken into consideration before a provider authorises your application for a large mortgage.

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Can I get a £5 million mortgage?

As long as you pass the eligibility and affordability checks for a mortgage of this amount, then absolutely!

The expert advisors we work with have access to specialist lenders, high net worth mortgage providers and private lenders who offer loans of £5m and upwards.

How to find a £5,000,000 mortgage provider

All is not lost if you’re looking to take out a £5 million mortgage and are having trouble finding a provider. Despite being trickier to locate with high street lenders, there are a number of specialist large loan providers out there who are willing to authorise mortgages in excess of £7 million. And this is where we can help you.

The whole of market brokers we work can put you in touch with a large loan lender that works with clients such as yourself every day. 

What is the monthly payment on a 5 million mortgage?

Monthly payments on a 5m 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 LengthMonthly 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 approved for a large mortgage?

The most common issue for those looking to take out a mortgage as large as £5m and up is finding a willing 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 – the good news is that the expert brokers we work with know who they are and can help the process along.

What other factors impact getting approved for a £5 million mortgage?

The process for getting a £5 million mortgage isn’t too dissimilar than if you were seeking one of £500k, for example; there are standard eligibility checks and procedures all providers follow before authorising a home loan:

Loan to Value and large loans

A property’s loan to value (LTV) refers to how much money you want to borrow versus its market value. This can have a huge impact on how favourably lenders look at you and what interest rates you’re offered on a mortgage.

Many lenders cap how much you can borrow based on LTV (plus any additional equity you own). Most residential providers offer up to 85% LTV, others 90%, and a few accept 95%. The higher your LTV, the higher risk you’re likely to be pose in the eyes of a mortgage provider.

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.

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

Affordability and £5 million mortgages

In the mortgage world, affordability is key. It stands to reason that lenders will want to know whether you are able to afford a mortgage of the requested size, and whether your income can feasibly cover monthly payments for a £5 million mortgage.

For smaller home loans, a lot of high street lenders tend to restrict their loan offerings to 4.5x a borrower’s annual income for employees, net profit for sole traders and partnerships, and salary + dividends for limited company directors.

However, some specialist large loan providers are more generous and have been known to offer high-end earners a higher maximum loan amount if they are seeking a large mortgage. A select few may stretch to 6x your income in the right circumstances.

How does bad credit history impact my eligibility for a 5 million pound mortgage?

If you have a history of adverse, lenders will generally perceive you as higher risk. However, every provider has different eligibility requirements and views on what they deem acceptable.

Some will have stricter rules for higher risk applicants, such as lending caps or lower LTV requirements. Others will only accept mild forms of adverse such as late payments or arrears, whereas others are more flexible.

Often, it depends on the recently or severity of the issue – some will accept severe instances such as repossessions and bankruptcies, provided they occurred over a certain amount of time ago (although some providers may impose certain rules).

To find out more on how bad credit can impact your £5 million mortgage application, visit our bad credit mortgages section.

Why you should speak to a whole of market mortgage broker

We’ve helped over 120,000 people find the right mortgage, even those who may have been declined a mortgage or had bad credit history. In fact, our customers consistently rate us 5 stars on Feefo, mainly due to our high levels of service, but also because we offer offers a 5-star service with access to expert brokers who:

  • Are whole of market.
  • Have a working relationship with all high net worth lenders, not just a select few.
  • Already know the lenders to go to for large mortgage loans as they successfully arrange these already.
  • Are OMA Accredited advisors.
  • Have completed a 12 module LIBF accredited training course.

Talk to a large loan mortgage expert today

If you like what you’re reading or require more information surrounding your 5 million pound mortgage, call Online Mortgage Advisor on 0808 189 2301 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee, and there’s no obligation or marks on your credit rating.


Updated: 12th June 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of 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 info 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.