£5 million-plus mortgages rising fast - as more lenders offer larger loans

The number of £5 million-plus mortgages granted by lenders increased by nearly two-thirds between 2020 and 2021, according to research by We Buy Any Home.

Following a Freedom of Information request, the Financial Conduct Authority (FCA) released the following figures: in 2021 property sales with mortgage values of more than £5 million stood at 279, compared to 169 in 2020. This represented a 65% increase. 

The average value of these £5 million-plus mortgages stood at £9.5 million in 2021, up from £8.9 million year-on-year. In addition, their total market value last year was £2.7 billion, an increase of £1.1 billion from 2020. 

Last year 220 mortgages of £5 million-plus were secured on properties in Central and Greater London. This compares with 49 in other regions - and ten classified by the FCA as “unknown”. 

Aaron Strutt, product director at Trinity Financial, says: "Our brokers will do everything possible to secure for you a larger mortgage loan through lenders offering the cheapest mortgage rates.

“One large bank recently removed the maximum loan size on its cheapest interest rates to attract wealthier clients seeking multimillion pound mortgages.

"More banks and building societies now provide £1 million-plus mortgages. They prefer to provide larger mortgage loans as it is easier for them to issue one big mortgage as opposed to multiple smaller mortgages.”

If your financial situation is particularly complex, then Trinity Financial may need to place your multimillion pound mortgage with a private bank.

Further data from We Buy Any Home: mortgages on properties costing more than £10 million almost doubled - from 40 in 2020 to 72 in 2021.

Call Trinity Financial on 020 7016 0790 to remortgage for home improvements or book a consultation