Switch your £1 million mortgage to a rate well below 2%

by Aaron Strutt

Nov 01 2014

Banks and building societies are actively competing with each other in order to lend more money so that they can hit their end of year lending targets. This is good news for borrowers looking for larger mortgage loans.

The lenders are trying to attract more high-net-worth borrowers by lowering their mortgage rates and increasing more of their maximum loan sizes.

Aaron Strutt, product manager at Trinity Financial, says: "We regularly arrange larger mortgages for our clients through a range of high-street lenders and private banks.

"At the moment there are a host of two-year fixed rate mortgages available below 2% and sub-3% five-year fixes - even if you are looking to borrow £1 million.

"If you have a good deposit, a clear credit history and you can meet the lenders mortgage affordability calculations, you should be able to qualify for some of the leading mortgages."

£1 million two-year fix

If you are looking to raise £1 million to purchase or remortgage a property, Trinity has access to a lender offering a three-year tracker rate at 1.65% with an APR of 3.5%.

This mortgage has a £1,999 arrangement fee and borrowers would need a 35% deposit to qualify. After the tracker rate period, the mortgage reverts to 3.99%, the lenders current variable rate.

The monthly repayments on an interest-only basis would be £1,375, although this rises to £4,071 on a full capital repayment deal over a 25-year term.

This mortgage does not have any early repayment charges, so clients can switch to a fix when the Bank of England base rate finally starts to rise.  

£1 million five-year fix

For clients looking to secure a five-year fixed rate for £1 million mortgages, Accord Mortgages, the broker lending arm of the Yorkshire Building Society, is offering a leading five-year fix at 2.79%. The APR is 5.1%.

If you were to borrow £1 million, the monthly mortgage repayments would be £2,325 on an interest-only basis or £4,633 on a full capital repayment basis over a 25-year term. Borrowers would need a 35% deposit to access this rate.

After the fixed period, the mortgage reverts to 5.99%, the lenders current standard variable rate.

If you would like help to secure a large mortgage loan, call Trinity Financial on 020 7016 0790.