Coutts, Metro Bank and Santander ease £1 million+ mortgage deposit requirements
Banks and building societies are working harder to attract wealthier borrowers looking for £1 million+ mortgages.
Over the last few weeks, three players in the large mortgage loan space have made changes to attract more high-net-worth borrowers.
Here is a summary of the changes:
10% deposit for £1.125 million mortgages with Metro Bank
Metro Bank for Intermediaries has increased the maximum loan size applicants can borrow if they have a 10% deposit from £675,000 to £1.125 million. For borrowers with 15% deposits, the maximum loan size has gone up significantly from £1m to £2m.
Many lenders limit the mortgage loan size for borrowers raising over £1m with smaller deposits, although Metro Bank has changed its rules to target this market.
Santander's £1m+ mortgage changes
Santander has made some big improvements to its large mortgage loan proposition.
- The maximum loan size on residential fixed products was increased from £1.5m to £3m for borrowers, providing they have a 25% deposit.
- Santander increased the maximum loan size from £1m to £2m on residential fixed products providing borrowers have a 15% deposit.
- The bank has launched new 40% deposit two and five-year fixed rates with a £1,999 arrangement fee for mortgages between £3m and £5m.
Coutts Private Bank: New 25% deposit mortgage for Super Prime Properties
Coutts has lowered the size of the deposit borrowers need to secure mortgages to buy in London's Prime postcodes.
The private bank, owned by NatWest, now requires borrowers to have a 25% deposit, rather than a 35% deposit, to buy in certain London Prime postcodes.
The mortgages are only for properties over £10m, excluding new builds and properties valued over £30m.
Aaron Strutt, product director at Trinity Financial, says: "If you are seeking a large loan, it is well worth checking NatWest's mortgages, as they generally are not capped when borrowers have larger deposits.
"The price difference between lenders offering large and bespoke mortgages can be pretty substantial. It makes sense to ensure you are getting the most competitively priced rates.
"Prime mortgages can be complex, so you may want to discuss them with us. We’re happy to answer your questions."
Call Trinity Financial on 020 7016 0790 to secure a larger mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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