Head of Content
Mortgage Advisor & Director
What is considered a large mortgage?
In the UK, borrowing over £500,000 is typically considered a large mortgage.
Sometimes referred to as 'jumbo' mortgages, these large mortgage loans are generally offered by specialist lenders, although given the right circumstances a standard lender may offer a deal. For most lenders, they will see one large loan to a single borrower as riskier as several smaller loans to several borrowers.
Large mortgage loans are considered on a case by case basis, and every lender is different. The number of lenders in the market will depend on how much you're looking to borrow.
As a specialist mortgage product, we would recommend engaging a competent, experienced broker. Not only can they recommend the most appropriate lenders and boost your chances of mortgage approval, but also find you the best rates. At Teito, our team of experts have helped many people like you to find the best deal possible on their large mortgage.
To get started, complete our simple online form today, and we promise to make your mortgage journey as stress-free and straightforward as possible.
Loan to value for large mortgages
For large mortgages, lenders will likely cap the amount they are willing to lend based on the Loan to Value (LTV) ratio.
The higher the LTV, the higher the risk and the less you will be able to borrow. For a smaller LTV, you will be able to borrow more as the risk is reduced for the lender.
As an example, at 80% LTV you may be able to borrow a maximum of £500,000, rising to £1 million at 65% LTV.
With a large enough deposit, you may be able to borrow up to £5 million or even more given the right circumstances.
How much can I borrow with a large mortgage?
Understandably, affordability is critical for large mortgages. As a rule of thumb, you will be able to borrow four times your income, or up to six times given the right lender and circumstances.
This means that to borrow £1 million, you will need to earn between £165,000 to £250,000.
Potential lenders will be looking for assurance that you will be able to afford your mortgage repayments, both now and in the future.
What deposit will I need for a large mortgage?
The amount of deposit you'll need will depend on how much you are looking to borrow.
For a mortgage of more than £1 million, lenders will generally look for a deposit of 35-40%, rising to 50% for borrowing over £5 million. All lenders are different; however, if you meet the right eligibility criteria, you may find you can borrow up to 80% of the value of the property.
Large mortgages for company directors
Company directors can often struggle to find the right lender who understands their income. For company directors who choose to retain profits in their business rather than take a dividend, this negatively impacts on their income when it comes to applying for a mortgage. There are some lenders who will take retained profits into their calculations for borrowing; our advisors can help with this.
Compare large mortgage deals
At Teito, we have access to more than 20,000 mortgage deals, including those from lenders specialising in large mortgages. Our expert advisors have helped many people like you to get the best deal possible on their large mortgage, complete our simple online form today to get started.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
