What are the best £3million mortgage products in the UK?

We asked our brokers to describe the ‘best mortgages’ available if someone wants to borrow £3 million pounds, and the answers we received are below. These mortgages will be available for higher and lower amounts subject to status.

‘Best’ isn’t always about the interest rate, it depends on your circumstances, your income and your plans.

We look at Loan to Value (LTV), Early Repayment Charges (ERC’s) Assets Under Management (AUM) as well as private banking and bridging finance.

 

 

Cheapest £3 million pound mortgage rates in the market

£3 million pound variable rate mortgage
Rate: 1.44% 2 year tracker (0.69% above BOE BR)
Lender Fee: £999
Max LTV: 60%
ERCs None
Repayment Type: Repayment Mortgage Only

 

£3 million pound fixed rate mortgage
Rate: 1.50% 2 year fixed
Lender Fee: £995
Max LTV: 60%
ERCs 2% year 1, 1% year 2
Repayment Type: Repayment mortgage or Interest only up to 50%*

*Interest-only subject to repayment vehicle and status.

 

Cheapest 5 year fixed mortgage for £3,000,000

Rate: 1.95% 5 year fixed
Lender Fee: £995
Max LTV: 60%
ERCs 5% year 1, 4% year 2, 3% year 3, 2% year 4, 1% year 5
Repayment Type: Capital and interest or interest-only up to 50%

 

Best Private Bank for £3m mortgages

With Assets Under Management
Rate:  1.50% over margin for 5 years
Lender Fee: 1% of the loan amount
Max LTV:  70%
ERCs: None
Repayment Type: Interest-only
AUM required: £1,500,000 minimum, then negotiable

 

Without Assets under management (dry mortgage)
Rate: 2.39% 2 year fixed
Lender Fee: 0.50% of the loan amount
Max LTV: 75%
ERCs: 2% in year 1 & 1% in year 2
Repayment Type: Interest-only

 

Highest loan to value

90% Loan to Value
Rate: 4.04% variable for 2 years
Lender Fee: 0.5% of the loan amount
Max LTV: 90%
ERCs: None
Repayment Type: Capital and interest or interest-only up to 50%

In exceptional circumstances we can arrange up to 95% loan to value. Reserved for very high earners from sports, entertainment and business leaders in their fields. There has to be a reason why this is required and the loan to value will need to be reduced rapidly with agreed over payments.

100% loan to value can be arranged if cash or other assets are lodged with the bank as additional security. This is useful for Non-Doms, Foreign Nationals or those who have recently sold business, for example.

 

For a fast offer and completion

Specialist lender

Where we control the process; offer within 7 days possible. This would be used where the transaction has to be completed urgently and there is a subsequent refinance when time is more relaxed.

Rate: 0.48% per month (5.76% annually)
Lender Fee: 2% of the loan amount
Max LTV: 60% Gross
ERCs: 1 month minimum
Repayment Type: Interest-only

 

Utilising Relationship

If time is less pressured and there is a very clean and high grade credit position we would lean on our excellent private bank relationships to create best in class service. This is what we have achieved in 2 weeks recently

Rate: 2.39% 2 year fixed (the rate was discounted to 2.24% as an exception to policy)
Lender Fee: 0.50%
Max LTV: 75%
ERCs: 2% in Year 1 & 1% in Year 2
Repayment Type: Full interest-only

 

With no or no provable little income

Private Bank based on Asset or Net Worth

This lender is also great if you have no income but a large amount in Investments or other assetrs. Instead of needing to show income multiples, as you would with a high street bank, if you have over £3m of net assets (mostly investments) then the lender can use the High Net Worth exemption rules to justify the mortgage.

 

Rate: 1.49% over Base for 2 years
Lender Fee: 0.5% of the Loan amount
Max LTV: 60% Loan to Value
ERCs: None
Repayment Type: Interest Only

 

Personalised agreement;  a mortgage structured to your needs

Another option is to individually create a mortgage based on your circumstances. This is highly negotiated and tailored to mitigate risk and work within regulations. Options include pre-paying interest, 3rd party security or intangible factors. Below are typical rates

Rate: 2.75% plus BOE base,2 year fixed – 3.1% & 5 year fixed 3.5% are typical offers
Lender Fee: 0.50%
Max LTV: 60%
ERCs: None for variable (2% per annum for fixed)
Repayment Type: Interest-only

 

Buy to let mortgages over £3m

Best Price
Rate: 2.79% 2 year fixed
Max LTV: 70%
Lender Fee £1,999
ERCs: 5/4/3/2/1/NONE

 

Highest Loan to Value

85% loan to value is possible but this often requires a very strong income and asset profile on top of the rental income generated by the property.

Rate: 3.99%
Lender Fee: 1.25%
Max LTV: 85%
ERCs: 4% year 1, 3% year 2
Repayment Type: Interest-only

 

In a Limited Company
Rate: 3.39%
Lender Fee: 1.25%
Max LTV: 75%
ERCs: 3% years 1&2
Repayment Type: Interest-only

 

Cheapest Bridging Rate

Rate: 0.48% per month
Lender Fee:  2% fee
Max LTV: 60% Gross
ERCs: 1 month minimum
Repayment Type: Interest-only

Interest can be rolled up or added within LTV limits. For exceptional cases, like everything else, this can be negotiated.

 

All of these rates and products were available on 10/01/2019 and of course are subject to status. For a personalised illustration based on your circumstances, please speak to our expert team on 0207 758 9393.

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