£1 million+ fixed rate mortgages starting from 3.24%
Banks and building societies have increased the cost of their £1 million+ mortgages in recent months following successive Bank of England base rate rises.
The mortgage market is going through a period of change as the price of funding mortgages rises and lenders pass on the costs to borrowers.
Trinity Financial has access to a range of lenders offering £1 million+ mortgages and the lowest fixed rates are currently priced at around 3.39%. If you do not think the base rate will rise over the shorter term, or you want an early repayment charge-free deal, the most competitively priced Bank of England large loans trackers are just over 2%.
Which lenders offer larger mortgage loans?
HSBC for Intermediaries has a selection of fixed and tracker £1million+ mortgages available to borrowers providing they have a deposit of at least 20%. The bank’s larger loan two and five-year fixes are the same prices if you have a 40% deposit.
Barclays for Intermediaries offers some of its cheapest rates to wealthier borrowers looking for mortgages between £2 million and £10 million. Metro Bank also provides competitively priced larger loan deals, although they tend to have 0.5% arrangement fees.
How much does a £1 million mortgage cost?
HSBC for Intermediaries offers a 3.24% rate for property purchases and remortgages, which is fixed until 31 October 2027. Applicants will need a 40% deposit to qualify, and the maximum loan is £5 million.
After the fixed period, the mortgage reverts to HSBC’s current standard variable rate of 4.29%, and there is a £999 arrangement fee. Early repayment charges apply.
Aaron Strutt, product director at Trinity Financial, says: "Mortgage brokers are earning their money now, with so many rate hikes and affordability changes.
"If you want a fast mortgage offer, it is important to know which lenders to approach. Some lenders are so busy that they are asking brokers not to chase them and they are taking longer than normal to produce mortgage offers."
Representative example: A capital and interest mortgage of £1,000,999 payable over 30 years, initially on a fixed rate basis until 31 October 2027 at 3.24% and then the lender's current standard variable rate of 4.29% for the remaining 25 years, would require 63 monthly repayments of £4,364.58 followed by 297 payments of £4,852.82. The total amount repayable would be £1,716,138.08 made up of the loan amount, plus interest (£ 274,850.54) and £999 (product fee), £0 (final repayment charge), £17 (completion fee). The overall cost for comparison is 4% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration. Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Call Trinity Financial on 020 7016 0790 to secure a £1 million+ mortgage or book a consultation
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