If you’re looking for a large mortgage, you’re not alone. New research from one of the UK’s largest lenders has found that the million pound mortgage market is at its strongest level for six years. FT Adviser reports that more and more borrowers are being pushed into the high net worth mortgage bracket as property values increase.
If you’re looking for a large mortgage you’ll generally find the marketplace tougher than an average borrower. With many high street lenders restricting their loan size to under a million pounds, it can pay to seek specialist large mortgage advice. We look at the latest research and explain why seeking the help of a high net worth mortgage broker can help you get the best million pound mortgage.
Million pound property sales reach a six year peak
New research from Lloyds TSB has revealed that the number of properties that sold for more than £1 million rose by 2 per cent last year, from 2,270 in 2011 to 2,397 in 2012. This represents the highest number of million pound sales since the peak of the housing boom in 2007.
Although transactions are still 10 per cent lower than they were six years ago, the high net worth sector has outperformed the rest of the housing market, with sales of homes worth under £1 million falling by 3 per cent in 2012.
Lloyds found that properties worth more than £1 million still only account for 1.1 per cent of all national sales, with the majority of them (85 per cent) situated in London and the South East.
Nitesh Patel, housing economist for Lloyds TSB, said: “Strong demand from wealthy, cash-rich buyers, both from the UK and overseas, as well as limited supply, has supported this sector of the market.
“As a result sales at the very top end of the market are much closer to their peak levels than the market as a whole.”
If you’re looking to buy a prime property and need a mortgage of over £1 million it can pay to speak to a large mortgage specialist, as we see next.
Specialist large mortgage advice can help you if you need a million pound deal
“If you approach a lender offering a ‘best buy’ deal that you’ve found online the chances are that you won’t be eligible for the product if you want to borrow over £1 million,” said Islay Robinson, CEO of London mortgage broker Enness Private Clients.
“Most traditional banks and building societies have a maximum loan size of between £500,000 and £1 million, meaning that if you want to borrow a seven figure sum you will have to look elsewhere,” he added.
While some banks do still offer larger mortgages, it can pay to speak to a high value mortgage broker as they often have access to a wide range of institutions with an appetite to agree multi million pound mortgage deals.
Mr Robinson added: “For the right high net worth clients the private banks have a huge appetite to do deals. As well as offering tailored mortgage rates, they also have the underwriting expertise to agree large mortgages for clients who don’t fit the ‘tick box’ mentality of mainstream lenders. This often includes unusual ownership structures, foreign nationals and clients who derive their income from non-traditional sources.”