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How much does a £5 million mortgage cost?
Page edited and updated 19/12/2024.
Trinity Financial has access to a selection of high street lenders competing with the private banks to provide £4 million and £5 million mortgages to wealthier clients.
More high-street lenders are undercutting private banks to attract high-net-worth clients and provide mortgages to fund those unique properties. This has led to more competitively priced rates and much lower setup fees.
View our £1 million+ mortgage loan best buy table and borrowing calculators.
Strong competition between lenders to attract clients looking for larger mortgage loans
The high-net-worth lending teams at banks like HSBC for Intermediaries, NatWest and Barclays for Intermediaries offer fixed and tracker rates priced from 4.09% for large mortgage loans. Arrangement fees also start from £1,499. Other lenders like Nationwide for Intermediaries also offer larger mortgage loans.
Trinity Financial's expert advisers have access to dedicated broker-only departments at the lenders, agreeing to million+ mortgages quickly and efficiently. It is not unusual for mortgage offers to be produced within a week or two.
How much does a £5 million mortgage cost on a two-year fix?
Suppose you want to raise £5 million to purchase a property on an interest-only, part interest-only or full capital repayment basis.
At the time of writing Trinity Financial has access to a large lender offering a two-year fixed rate of 4.17%. The overall cost for comparison is 6.8% APRC.
The monthly payments on a 4.17% interest-only mortgage would be £17,375, rising to £24,363.39 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 unless you remortgage or complete a product transfer. The overall cost for comparison is 6.8% APRC.
Aaron Strutt, product director at Trinity Financial, says, "Mortgage rates have increased, but they may come down early next year. Lenders are still keen to provide larger mortgage loans to different borrowers, including business owners, bankers, and entrepreneurs.
"Many lenders offer two-year tracker rates without early repayment fees so borrowers can refinance onto a fixed rate without charge or make lump sum overpayments. Most lenders have had a good start to the year and still provide a fast service. One lender has a flexible 4.83% two-year tracker with a £3,999 arrangement fee. Halifax also offers a 1.5-year fixed rate for borrowers who prefer shorter-term options."
How much is a £5 million mortgage on a five-year fixed rate?
If you prefer a longer-term rate, Trinity Financial has access to large banks like Nationwide for Intermediaries. It offers £5 million mortgages with a 4.09% five-year fix. The monthly repayments would be £17,041.67 on interest-only or £24,130.92 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 7.74%, and the overall cost for comparison is 5.9% APRC.
Private banks vs the high street mortgage lenders
In recent years, there has been less focus on transferring assets and current accounts to private banks as part of the mortgage process.
If you are planning to buy an expensive property and need a larger mortgage, it is often better to research the overall market and check the private banks to ensure you get the best deal. With rates fluctuating so much now, shopping around could get you a rate that's 0.75% (or more) cheaper, so it would be 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. Some are more conservative and prefer 30% or 40% deposits.
Contact Trinty Financial's large loan experts
With Trinity Financial's wealth of experience, your £5,000,000 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 will:
- Assess whether a private bank or high street lender should be used.
- Use lenders who are happy with country homes with outbuildings and lots of land.
- Work with lenders who are happy with bonuses or Restricted Stock Units income.
- Arrange interest-only mortgages or part interest-only mortgages.
- Use onshore and offshore income from royalties and trusts and global assets.
- Income from different companies, in overseas currencies and property portfolio income.
Call Trinity Financial on 020 7016 0790 to secure a £5-million mortgage. Submit a mortgage questionnaire 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
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.
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.
