Number of £1 million-plus mortgages agreed at highest level on record

by Aaron Strutt

Dec 01 2018

The number of new £1 million-plus mortgages agreed is at the highest rate since records began.

Latest figures show there were 820 seven-figure mortgages approved in the three months to September. The average loan size was £1.6 million, and they totalled £1.37 billion.

Aaron Strutt, product director at Trinity Financial, says: “More of the lenders have specialist underwriting teams to get large mortgage loans agreed quickly and efficiently. It is quite incredible how cheap the rates are and how many of them can be taken on interest-only.”

The number of £1 million-plus loans was also up 47% on the previous quarter when 559 mortgages were taken out totalling £927 million.

Data from the Financial Conduct Authority published in The Evening Standard, show the highest number of mortgages were agreed since records began in 2014 when there were 363 £1 million-plus transactions.

The rise in the number of larger loans agreed has been linked with homebuyers moving to commuter zones in areas like Kent, Surrey and the Home Counties.

Lenders offering larger loans

Some of the biggest lenders offer £1 million-plus mortgage through their intermediary teams and produce fast mortgage offers. Some lenders have huge maximum loan sizes up to £10 million.

A selection of the high street lenders offering larger loans includes:

Cheapest £1 million-plus fixed rate

Trinity Financial one of a limited number of brokers with access to NatWest for Intermediaries specialist large loan team. The bank is offering one of the lowest short-term fixed-rate mortgages for larger mortgage loans.

The 1.49% rate is fixed until 31/03/2021. At the end of this period, it reverts to the lender's variable rate currently of 4.24%. The overall cost for comparison is 3.80% APRC representative.

The mortgage has a £995 arrangement fee, and it is available for purchases and remortgages. Applicants will need a 40% deposit to qualify. Early repayment charges apply for the fixed period, and the maximum loan is £10 million. NatWest will pay for the property valuation and cover the cost of the standard legal fees when you remortgage to the bank.

Representative example: A capital and interest mortgage of £1,200,000 payable over 25 years, initially on a 1.49% fixed rate until 31/03/2021 and then on a variable rate of 4.24% for the remaining 23 years, would require 26 monthly repayments of £4,793.60 followed by 274 monthly repayments of £6,346.04. The total amount repayable would be £1,866,146.06 made up of the loan amount, plus interest (£663,448.56) and £995 (product fee), £75 (final repayment charge), £30 (completion fee). The overall cost for comparison is 3.80% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration. 

Call Trinity Financial on 020 7016 0790 to secure a £1 million-plus mortgage