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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: 9th September 2020*

How to get a mortgage for over £6 million

Those looking to invest in high value property can find it difficult to find a lender. Many mortgage providers have a maximum sum they’re willing to lend any applicant due to the risk involved with investing a lot of money in one borrower/property, versus spreading the load across multiple individuals.

Fortunately the brokers we work with are experts when it comes to very high value mortgages, including home loans worth £6 million and upwards, and they can give you the right advice on finding a lender specialising in large loans, the type of eligibility requirements that are likely to be in place, and what other factors these providers are likely to consider before authorising a mortgage of these hefty amounts.

In this article we will cover:

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Can I get a mortgage of £6 million or more?

If you’re the kind of high net worth individual who is capable of passing a large mortgage loan provider’s affordability and eligibility checks, then the sky is pretty much the limit. The brokers we work with have access to lenders who offer mortgages of…

  • £6 million
  • £7 million
  • £8 million
  • £9 million
  • £10 million
  • £80 million
  • £85 million
  • £100 million

If you’re taking on a debt of this size, it’s vital that you seek specialist advice first and are introduced to the lender who is best positioned to offer a high net worth mortgage.

The advisors we work with can offer bespoke guidance and will make sure you’re paired with the right multi-million pound lender for your needs and circumstances.

How much do I need to earn to get a mortgage of £6 million and upwards?

Given that most mortgage providers cap their lending at 4.5x your salary, you would need to earn just under £1.35m per year to get a mortgage of £6 million.

That said, specialist high net worth lenders might be willing to stretch to x5 or x6 your salary under the right circumstances, in which case you could be approved for a £6 million mortgage if your income is between £1m and £1.2m per year.

The same income multiples formula can be applied to mortgages of £7 million, £8 million, £9 million, £10 million and upwards to establish how much salary you would need to be earning to service a home loan of the amount in question.

What are the repayments on a mortgage of £6 million and up?

The tables below provide examples of how much the repayments would be on mortgages of £6 million and up, based on a capital and repayment deal with an interest rate of 2% and a term length of 25 years…

£6 million mortgage

Mortgage amountTerm lengthInterest rateMonthly paymentTotal paid during term
6 million25 years2%£25,436£7,630,724

£7 million mortgage

Mortgage amountTerm lengthInterest rateMonthly paymentTotal paid during term
7 million25 years2%£29,675£8,902,511

£8 million mortgage

Mortgage amountTerm lengthInterest rateMonthly paymentTotal paid during term
8 million25 years2%£33,914£10,174,299

£9 million mortgage

Mortgage amountTerm lengthInterest rateMonthly paymentTotal paid during term
9 million25 years2%£38,154£11,446,086

£10 million mortgage

Mortgage amountTerm lengthInterest rateMonthly paymentTotal paid during term
10 million25 years2%£42,393£12,717,874

£80 million mortgage

Mortgage amountTerm lengthInterest rateMonthly paymentTotal paid during term
80 million25 years2%£339,143£101,742,989

£85 million mortgage

Mortgage amountTerm lengthInterest rateMonthly paymentTotal paid during term
85 million25 years2%£360,340£108,101,927

£100 million mortgage

Mortgage amountTerm lengthInterest rateMonthly paymentTotal paid during term
100 million25 years2%£423,929£127,178,737

The above tables are purely for example purposes. The exact amount you would have to repay on a high net worth mortgage will vary based on a number of factors, including the term length and how much deposit you have.

Why is it more difficult to get a mortgage of over £6 million?

The process of getting a very large loan, such as for a £6 million mortgage and upwards, is very similar to that of a “normal” size home loan. The main factor that differentiates the process is the difficulty involved in finding a willing provider.

As larger value loans are deemed considerably higher risk, fewer mainstream lenders are able to cater for your requirements. What’s more, there is more expertise required when dealing with mortgages at high loan values, meaning that you will likely need to approach a specialist large loan lender.

How to find a large loan mortgage provider

Although they can be more difficult to find, rest assured that there are specialist providers out there who are willing to offer very large mortgages. So, whether you’re looking for a £7 million mortgage, right through to an £80m or £100 million mortgage, there are lenders available.

By going through a whole of market broker like the ones we work with, you can speak to an expert who deals specifically with large loans and can refer you to lenders that deal with high net worth clients every day.

What other factors impact getting a mortgage of over £6 million?

When you’ve found a willing lender, similar eligibility checks will apply as with any mortgage – although you may be subject to more scrupulous analysis than you would expect with a lower value loans. In essence, though, similar factors will be taken into consideration:

Affordability and large mortgages

It goes without saying that you have to be able to afford your mortgage and that you are able to provide evidence (usually determined by income) to back this up. Lenders need proof that you can feasibly borrow the sum you’ve applied for, and be confident that can keep up with the repayments throughout the life of the loan.

Most mainstream mortgage providers have a cap on how much they are willing to loan borrowers, with the majority limiting the value to 4.5x an employees’ annual income, net profit for sole traders and partnerships, and salary + dividends for limited company directors.

However, slightly different rules can apply with particularly large loans; some specialist providers will extend these restrictions for high-end earners, sometimes in excess of 6x your income.

If you need to borrow more than that, a secured loan might be an option. Lenders in this market can stretch to 10x your income – if you pass the eligibility checks.

Loan to Value and large loans

Loan to Value (LTV) describes how much you want to borrow in relation to the property’s market value. So, if you are looking for a £9 million mortgage and have a 10% (£900,000) deposit saved, the LTV would be 90%.

Generally speaking, a lower LTV opens you up to a wider variety of lender options and access to more competitive rates. This is because the more the invest from your own pocket, the more reassurance you are giving mortgage providers of your commitment.

What’s more, lenders often cap the amount they will lend you based on the property’s LTV. For example, one loan provider may not be willing to lend for an £8 million mortgage unless you have an LTV of at least 90%. If you have an LTV of 80% on the other hand, the same provider may be willing to extend this to a £10 million mortgage.

It’s important to note that every lender is different and that the above is only being used as an example. Based on the lender, your individual situation and other influencing factors, you may well find a lender out there willing to lend you an £85 million mortgage, for example, at an LTV of 85% – it all depends.

Why you should speak to a whole of market mortgage broker

We’ve helped over 120,000 people find the right mortgage, including those who were looking to borrow £6 million or more.

In fact, our customers consistently rate us 5 stars on Feefo, mainly due to our high levels of service, but also because we offer 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 multi-million pound mortgages 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, 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: 9th September 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.