How much does a £1.5 million mortgage cost?
£1,500,000 Mortgage: Monthly Repayments & Income Requirements
£1.5 Million Mortgage Requirements
Discover how you can secure a £1.5 million mortgage with expert guidance from Trinity Financial.
To qualify for a £1.5 million mortgage, you typically need a deposit of at least 10% of the purchase price, though some lenders may require up to 20%. Additionally, a single or joint income of at least £300,000 is usually required.
At the time of writing this article, the estimated monthly repayments for a £1.5 million mortgage are around £5,625 on interest-only or £7,600 on capital repayment. This calculation is based on an interest rate of 4.5%, a 30-year term, and a capital repayment structure. Providing applicants have a 40% deposit.
In this guide, we’ll outline expected repayments, income requirements, and other key factors affecting your mortgage costs.
How many lenders offer £1.5 million mortgage?
A surprising number of mortgage lenders offer larger mortgage loans, including many of the high-street banks and building societies. HSBC, Santander, Halifax, and NatWest typically offer competitively priced larger mortgages. Private banks like Coutts, Investec, and Barclays also want to issue larger mortgages.
How much does a £1.5 million mortgage cost per month?
Lenders determine mortgage affordability based on income and expenditures, applying a multiple of earnings to assess borrowing capacity. Since criteria vary across lenders, some may offer more flexibility than others, particularly for high-value loans.
Most lenders base affordability on salaried income, typically allowing borrowing up to 4.5 times annual earnings. In some cases, this may extend to 6 times income. A portion of annual bonuses may also be considered, though rarely in full unless through specialist providers. Additionally, lenders assess fixed expenses such as childcare, private school fees, cars on finance, gym memberships and credit cards or loans through a process known as ‘stress-testing.’
If you had a 25% deposit the monthly repayments on a £1.5 million interest-only mortgage would be approximately £5,312.50, increasing to £7,379.10 on a full capital repayment mortgage over a 30-year term. This based on a rate of 4.25%.
Deposit Requirements for a £1.5 Million Mortgage
Lenders generally require a deposit between 10% and 20% of the property value. The loan-to-value (LTV) ratio plays a crucial role—lower LTVs reduce lender risk and result in lower repayments.
Many high-street lenders enforce income caps for high-value loans, typically limiting lending to 75-80% LTV for mortgages above £1 million. This means that, depending on the lender, you may need a minimum deposit of 10% to secure financing.
However, if you meet the necessary criteria and present a strong application with minimal risk factors (such as a good credit history and large income), you may still secure a £1.5 million mortgage with standard deposit requirements similar to those for conventional residential loans.
Call Trinity Financial on 020 7016 0790 to secure a £1.5 million mortgage, submit a questionnaire or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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