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How much does a £3 million mortgage cost?
Page edited and updated 19/12/2024
Trinity Financial offers a bespoke service for high-net-worth individuals looking for £3 million+ mortgages to purchase or remortgage prime postcode properties.
Our expert advisers work with a wide range of private banks, high street banks, and building societies, providing £3 million+ mortgages. At the time of writing this article, Trinity Financial has access to a building society offering large loan two-year fixes from 4.17% and five-year fixes from 4.09%.
Click the links for our million-pound mortgage best buy table and borrowing calculators.
How much does a £3 million mortgage cost?
Private banks and high-street lenders still compete to attract high-net-worth clients by easing acceptance criteria and lowering their rates.
Suppose you want to raise £3 million to purchase or remortgage a property on an interest-only, part interest-only or full capital repayment basis. Trinity Financial's brokers can access a lender offering a two-year fix at 4.17%, and the overall cost for comparison is 7.1% APRC.
The monthly payments on a 4.17% interest-only mortgage would be £10,425, rising to £14,618.036 on full capital repayment over a 30-year term. The mortgage has a £1,499 arrangement fee, and you need to put down a 40% deposit to qualify. After the fixed rate, borrowers revert to the 7.49% standard variable rate unless they switch products.
This product is available for mortgages up to £5 million, and rates are not much more expensive if you have a smaller deposit. Rates tend to be higher through the private banks.
What about £3 million five-year fixed rate mortgages?
Nationwide for Intermediaries offers some of the most competitively priced larger loan five-year fixes.
Aaron Strutt, product director at Trinity Financial, says: "If you prefer a longer-term fixed rate option to borrow £3 million, our brokers have access to a 4.09% five-year fix through our large loan contacts at Nationwide for Intermediaries.
"The monthly repayments on a £3 million mortgage would be £10,255 on interest-only or £14,478.55 on capital repayment over a 30-year term."
This mortgage has a £1,499 arrangement fee, and borrowers must put down a 40% deposit. The standard variable rate is 7.49%, and the overall cost for comparison is 6.6% APRC.
What types of £3 million+ mortgages are borrowers taking?
More of our clients are taking two-year rather than five-year fixes because they expect mortgages will come down over the shorter term.
Five and some ten-year fixes are often cheaper than two-year fixes, although the gap has closed compared to last year.
Private banks have been improving their rates over the last month, and they are significantly lower than they were.
What is the most generous mortgage income multiple for a £3 million mortgage?
Banks and building societies offer mortgages up to 5.5 times single or joint salaries to wealthier borrowers. While many homebuyers will not need the entire 5.5 times salary multiple, it is a valuable tool for enabling us to get the mortgage loan size required.
Income stretches help because the lenders reduce the maximum loan size if borrowers have children, cars on finance, private school fees, other residential properties or ongoing credit commitments.
Most private banks target high-net-worth clients and tend to have minimum mortgage loan sizes between £750,000 and £1 million. Some private banks require borrowers to earn at least £300,000 a year to qualify or have more than £3 million in net assets, while others have tighter rules for overseas investors.
Lenders can vary their affordability rules for high-net-worth clients and make exemptions or take charges on worldwide assets like property portfolios or investment funds.
Private banks vs the high street mortgage lenders
There has been less focus on transferring assets and current accounts to private banks as part of the mortgage process. One private bank just announced it is removing the requirement to transfer assets to try and attract more clients.
If you are planning to buy an expensive property and need a larger mortgage, it is often better to research the overall market and the private banks to ensure you get the best deal. With rates fluctuating so much now, if you can get a rate that's 0.75% cheaper through shopping around, it is well worth the effort.
Some private banks are well known for issuing larger loans to borrowers with smaller deposits, while others will lend to overseas buyers using income from multiple sources.
Contact Trinty Financial's £3 million+ mortgage large loan experts
You can be assured that, with Trinity Financial's wealth of experience, your £3,000,000 mortgage application will be in safe hands.
We work hard to produce fast mortgage offers and update you at every important stage of the application process. Our experts consistently arrange mortgages where:
- Assess whether a private bank or high street lender should be used.
- Arrange fast mortgage offers.
- Use lenders happy when bonuses are higher than the basic salary.
- Arrange interest-only mortgages or part interest-only mortgages.
- Secure vested stock bonuses and RSU income.
- Use onshore and offshore income from royalties and trusts and global assets.
- Income from different companies and property portfolio income.
Call Trinity Financial on 020 7016 0790 to secure a £3-million mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Accessing a £3 million buy-to-let mortgage through a more standard lender is more complicated than a £3 million residential mortgage. Lenders offer larger buy-to-let mortgages, but often on a case-by-case basis.
Some more standard lenders offer £3 million+ buy-to-let mortgages, but the choice is limited, and the rates are also higher in many cases.
Private banks will offer terms on larger buy-to-let mortgages and tend to be on tracker rates.
The Family Building Society for Intermediaries rate for property purchases and remortgages is 5.44%, with a 0.4% arrangement fee. Landlords must make a 40% deposit to qualify.
The lender's Residential Investment Managed Mortgage Rate is fixed for two years. The APRC is 7.2%. The monthly payment on a £3 million interest-only mortgage would be £13,600 monthly. This rises to £16,920.91 on capital repayment over a 30-year term.
Call Trinity Financial on 020 7016 0790 for a quote.
The Financial Conduct Authority does not regulate most Buy to Let Mortgages
The vast majority of borrowers take fixed-rate mortgages, which typically have early repayment charges, but there are still some competitively priced tracker rates available to borrowers without tie-ins and discounted mortgages available without early repayment charges.
Halifax for Intermediaries recently launched some flexible tracker rates without early repayment charges. The most competitively priced tracker is 0.08% above the Bank of England base rate, and arrangement fees start from £1,499. For mortgages between £1 million and £5 million, the arrangement fee is £3,999.
• You contact one of our consultants by calling 020 7016 0790 to or complete our enquiry form. You can also complete our mortgage questionnaire for a more detailed initial response.
• You tell us what you are looking for and we assess your mortgage and financial protection needs based on your monthly
budget.
• We collect the information and documentation that the lenders and providers will need.
• Based on the information supplied, we provide you with illustrations for the most suitable products for your
circumstances.
• With your agreement, we then submit the application on your behalf with a view to securing a mortgage offer
as quickly as possible.
• We manage the application through to completion and liaise between all involved parties such as valuers, estate agents
and solicitors.
• Post-completion we are available for any questions. When you reach the end of your initial product, we are
also able to discuss any further mortgage, will or financial protection product requirements.
High-street mortgage lenders have set up specialist high-net-worth departments to provide wealthier borrowers with larger mortgage loans.
The banks and building societies are consistently providing £1 million+ mortgages to borrowers purchasing properties or remortgaging.
Some of the lenders will provide mortgages up to £5 million or £10 million with £999 arrangement fees.
The lowest deposit borrowers need to access a £3 million mortgage is likely to be 10%.
Many lenders require a 40% deposit to access the most competitively priced mortgage rates; however, not all our clients want to put down such a large deposit.
Trinity Financial has access to one private bank that issues £3 million mortgages to wealthier clients earning over £300,000 yearly or with £3 million in net assets and 10% deposit mortgages.
As part of the mortgage, lump-sum overpayments will be written into the contract to bring down the loan-to-value, particularly if the mortgage is taken on interest only.
Interest-only mortgages are available to wealthier clients looking for larger mortgage loans. The lenders accept a range of repayment vehicles for interest-only repayments, including the sale of the mortgaged property, lump-sum overpayments from bonuses or the sale of other properties.
It is not always necessary for wealthier borrowers to use private banks to secure large mortgage loans if they can prove their income through tax returns, company accounts or payslips.
The benefit of using a high street bank or building society over a private bank often comes down to cost.
High street lenders have been taking part in a price war over the last few years and some of them have been offering their cheapest ever rates to borrowers taking £1 million+ mortgages.
The price of £3 million+ mortgage loans for borrowers with larger deposits is often priced around 4% with £999 arrangements fees.
If you are remortgaging, the lenders even provide free property valuations.
If you are looking for a larger mortgage loan, it is important to secure the lowest rate with the most competitive arrangement fees.
As part of our service, we take the time to understand exactly what our clients require and then research the market to obtain the leading deals and the fast possible mortgage offers.
We understand the larger loan mortgage market and what it takes to get applications agreed as efficiently as possible.
It typically takes the mortgage lenders around two weeks to produce mortgage offers once they have received all of the information they require to process the application.
If the lenders asked for additional information or requesting figures from an accountant this can slow down the process.
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
