How much does a £5 million mortgage cost?

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.

Trinity Financial specialises in arranging larger mortgage loans and we constantly monitor the market to ensure we know which lenders have the best £1 million+ deals and the lowest arrangement fees.

To ensure that we can secure mortgages for our clients as efficiently as possible we have built relationships with the top lenders to get cases agreed without calling the standard broker phone lines. We go directly to the high net worth lending teams.

It typically takes the mortgage lenders around one or two weeks to produce mortgage offers once they have received all of the information they require to process the application. If you are in a hurry to complete we can approach the lenders with faster turnaround times.

It is possible to access a £5 million mortgage 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.

Some private banks will write 'bullet repayments' into the mortgage contract, especially if you take a higher loan to value product.

It all comes down to price. The high street mortgage lenders are undercutting the private banks and they are also typically charging cheaper arrangement fees. If you have a relatively straightforward financial situation then you may not need a private bank to access a mortgage.

Suppose you want to raise £4 million to purchase a property on an interest-only, part interest-only or full capital repayment basis.

Trinity Financial has access to a large lender offering a five-year fixed rate of 4.09%. The overall cost for comparison is 7% APRC.  

The monthly payments on a 4.09% interest-only mortgage would be £13,633.33 rising to £19,304.74 on full capital repayment over a 30-year term.

The mortgage arrangement fee is as low as £1,499, and you will need a 40% deposit to qualify. After two years, the rate reverts onto the lender's current 7.49% standard variable rate.

Early repayment charges apply on this mortgage for the full five years.

High street banks, building societies, and private banks offer £4 million mortgages. We will always aim to put our clients with a high street lender unless their situation is particularly complex, they are buying a unusual property, maybe with commercial elements, or they want a private bank to manage some for investment portfolios. 

Trinity Financial has access to a private bank offering 10% - 15% deposit mortgages for wealthier borrowers looking to borrow £5 million.

If you opt for a 10% to 15% deposit £5 million interest-only mortgage, the private bank will likely expect lump sum capital repayments, which would be quarterly payments, to reduce the loan to value. 

Most lenders expect higher-net-worth clients to put down 25% to 40% to access the most competitively priced rates. One private bank offering 10% deposit larger mortgage loans charges around 5.5% on its two—and five-year fixes.

Once you have contacted one of our consultants by calling 020 7016 0790 or completing our enquiry form we will give you an idea of how much you can borrow and the best rate. 

Based on the information supplied (identification, payslips, accounts, etc) we provide you with illustrations for the most suitable lender for your circumstances. 

We collect the information and documentation that the lenders and providers will need, and submit and manage the application through to completion. We liaise between all involved parties such as valuers, estate agents and solicitors.

Ultimately we will do everything possible to get your mortgage agreed. 

Certain banks and building societies will accept income paid in foreign currency. This includes US dollars, Euros, and Swiss Francs.

Other accepted currencies include: Australian Dollar, Bulgarian Lev, Canadian Dollar, Croatian Kuna, Czech Koruna, Danish Krone, Hungarian Forint, Japanese Yen, New Zealand Dollar, Norwegian Krone, Polish Zloty, Romanian Leu, Singapore Dollar and, Swedish Krona.

Some lenders will factor in currency fluctuation and take a "haircut", so the amount you can borrow may be reduced.