How to secure a mortgage for buying a prime property in Mayfair

by Aaron Strutt

Dec 10 2023

How to secure a mortgage to buy a multi-million-pound property in Mayfair, London. 

The property market is booming in Mayfair with mainly international buyers purchasing properties. According to Beauchamp Estates, twice as many Mayfair “super-prime” homes worth upwards of £10 million have sold in 2023 compared to last year.

There is also no shortage of homes to purchase, with approximately 100 flats or houses for sale in Mayfair's W1J postcode. Also, hundreds more are available within a quarter of a mile.

Increasingly, overseas buyers from countries such as America, China and the Middle East are transforming the ultra-luxury market in prime London. Many are buying second homes, houses for their families or mixed-use buildings. These include commercial elements as they diversify their portfolios and consider the UK a safe place for their money.

Acquiring finance to buy a multi-million-pound property does not have to be complex: you simply need to know which lender to approach. Also, many private banks want to issue large mortgages to international clients with often multiple sources of income.

Aaron Strutt, product director at Trinity Financial, says: "Some private banks are reportedly providing around half of their new mortgages to international buyers and use multiple names on their mortgage applications. They are also working faster to issue mortgage terms as many sellers want to exchange promptly due to the current global economic situation. 

"These banks can provide multi-currency mortgages to help buyers leverage risk. They also have reserve accounts where borrowers can obtain remortgages agreed in advance to buy additional properties and be classed as cash buyers."

Higher-value purchases typically involve a combination of personal resources: mortgages, refinancing, and the international transfer of business or family funds for the deposit. While many prime properties are bought with cash, buyers often want to refinance, recouping their finances and invest in other areas. 

Steps to consider when buying in Mayfair

When planning to buy a super-prime property in Mayfair or London, you will typically need a deposit of 25 per cent, although some lenders require the smaller deposit of 10 per cent. Also required will be proof of your income, assets and credit history. Lenders want to understand and see proof of your overall financial situation.

Trinity Financial has access to private banks and financial institutions which normally pre-approve wealthy borrowers for their mortgages. Our brokers have a track record of securing large mortgage loans for clients with a wide range of financial situations, many are entrepreneurs and company directors.

Network with estate agents and buying agents 

Super-prime properties still regularly go to sealed bids, while many do not even enter the wider property market. 

One private bank recently explained an Indian client paid £1 million more than the asking price of the house due to the amount of interest in the house. These banks suggest to buyers they get their funds ready to be in pole position to buy even £1 million+ homes.

Trinity Financial works closely with Winkworth estate agents covering Mayfair and also works with its Asian Pacific desk.

What is happening in the prime mortgage market? 

Building societies, high street banks, and private banks are all competing to offer wealthier clients finance, whether to fund a purchase transaction or refinance once completed. Some buyers are losing out on securing properties because their finances are both complex and they had not agreed mortgage agreed in principle.

The cost of funding fixed rates has come down in recent months, and mortgages are now available below the current 5.25% base rate set by the Bank of England. Some lenders will ask for financial assets, like stocks and shares, to be transferred to them to manage for £1 million+ property transactions, while others do not request funds. 

Be prepared for due diligence

Banks and building societies will conduct thorough due diligence. Be prepared to provide all necessary documentation, including financial records, source of wealth and the deposit. You will also be assessed as to whether you are a politically exposed person or not.

Trinity Financial's high-net-worth specialists work closely with lenders to negotiate terms that are favourable to you, taking into account interest rates, repayment schedules, and any potential equity arrangements.

Remember, acquiring finance for a multi-million property is a complex process. It's crucial to seek professional advice at all stages of the transaction to ensure success and mitigate risks.

Stamp duty payments 

Different Stamp Duty Land Tax rates will apply to purchasers of residential properties in England and Northern Ireland who are not residents of the UK. Rates are two percentage points higher than those purchases made by UK residents.

This surcharge applies to freehold and leasehold property purchases. Also, it increases the Stamp Duty Land Tax payable on rents on the grant of a new lease. The surcharge also applies to certain UK-resident companies that are controlled by non-UK residents.

Many international buyers purchasing expensive homes are working out how they can be tax-efficient; they speak to their financial advisers to determine the best way to proceed with their purchases.

Click here to use Trinity Financial's stamp duty calculator. 

Stunning homes for sale in Mayfair

Properties typically range in price from £50 million for a large home to £800,000 for one-bedroom flats in Mayfair. According to Beauchamp Estates, property sales reached a combined value of £313 million in Mayfair, almost triple the equivalent value of £123 million in 2022.

One property just on the market has a real history. The Times reports that back in Georgian London, the lavish mansion in Mayfair of 139 Piccadilly was the scene of some of the city’s biggest society bashes — and scandals. Lord Byron bought the vast home in 1815 and wrote some of his most famous poems there, including Parisina. However, the property needs refurbishment and is listed as a members' club. It is selling for £29.95 million.

Some of the most expensive homes for sale are on Brick Street (pictured above), Berkeley Square, Grosvenor Square, Mount Street and Charles Street. 

An Indian billionaire has reportedly spent £138 million buying a 25,000 sq ft mansion in Mayfair. This is the most expensive UK property buy of the year and the second most valuable home ever sold in London.

Speak to a mortgage expert

Trinity Financial has two offices: one based just off Piccadilly at 13 Charles II Street and the other in Angel, Islington.  One of our directors recently scooped the Best Broker for Large Loans award at the British Mortgage Awards.

Call Trinity Financial on 020 7016 0790 to secure a Prime Property 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