Santander improves larger loan range for mortgages between £250,000 and £3 million
Santander is the latest lender to improve the rates on its mortgages between £250,000 and £3 million.
Over the last year many of the banks and building societies have lowered their fixed and tracker rates, and they are regularly available for larger mortgage loans.
The cheapest mortgages are two-year fixes or two-year trackers, but there is not a huge premium to pay for the security of a five-year fix.
Santander's lowest rate is priced at 1.26% and fixed until 2 April 2022 - it has a £999 arrangement fee. Applicants will need a 40% deposit to qualify, and the overall cost for comparison is 3.6% APRC. It is available for mortgages up to £1 million.
Aaron Strutt, product director at Trinity Financial, says: "If you were to borrow £1 million and you had a 50% deposit, the monthly payment would be as low as £1,050 a month on interest-only rising to £3,887 on capital repayment over a 25-year term.
"The two-year rate for mortgages between £1 million and £3 million increases to 1.44% and the arrangement fee rises to £2,499. The overall cost for comparison is 3.60% APRC."
Santander's mortgage rates revert on to the lenders current standard variable rate of 4% although Trinity Financial broker's arrange rate switches to ensure our clients do not have to pay higher rates.
Call Trinity Financial on 020 7016 0790 to secure a mortgage. You can also book a mortgage consultation.
Post Office for Intermediaries is offering a £1 million mortgage on a full interest-only up to 60% loan-to-value.
The 1.27% two-year rate is fixed until 31/01/2022 and reverts to the lenders 4.74% standard variable rate for the rest of the mortgage term. The overall cost for comparison is 4.3% APRC.
The £1,058 on interest-only and £3,892 on capital repayment over 25 years.
You would need to earn around £225,000 a year to borrow just over £1 million. A joint application would mean £120,000 each.
Santander’s will lend a maximum of 50% loan-to-value on interest-only. Any lending up to 85% loan-to-value must be on capital and interest.
If an applicant's gross income is more than £250,000, the maximum loan-to-value is 75%. The applicants will need a minimum of £150,000 equity at the end of the mortgage term.
The bank will not lend above any applicant's intended retirement age and the maximum term is 25 years and must not exceed the oldest applicant's 70th birthday.
It used to be the case that when clients asked for a £1 million+ mortgage we went to the private banks but the biggest high street lenders have upped their game to compete for the business.
If the application is particularly complex then a private bank might be the best option, but for the cheapest rates are hard to look past if you want a best-buy rate.
The high street lenders does not ask for assets under management as part of the deal and they provide longer mortgage terms.
We have noticed that more of our clients have even more complex financial situations because of the rise in self-employment and the way people earn their money.
To deal with the rise in complex cases and quirky properties the lenders have started offering specific teams to deal with the more tricky cases.
We regularly receive enquiries from clients with…
Retained profits from self-employment. Using one year of accounts or net profit plus salary to boost mortgage affordability.
5.5 times salary income stretches.
Properties with lots of land.
£1 million+ mortgages.
Different income sources.
Plans to consolidate debt.
Foreign income.
Seeking lower monthly payments through interest-only mortgages.
Adverse credit or missed payments.
Guarantor mortgages.
Non-standard construction.
Older borrowers.
Properties with two kitchens.
Bridging loans.
There has also been an increase in lenders offering contractor mortgages.
Here is a link to some of our example case studies: https://www.trinityfinancialgroup.co.uk/case-studies/
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