How difficult is it to arrange a large mortgage loan?

How difficult is it to arrange a large mortgage loan?

Whether you’re looking to buy your dream home, a high-end property as a rental investment or a high-value commercial property, you’ll more than likely need to arrange a large mortgage loan to finance the purchase. But how easy is it to find this type of mortgage and how stringent are the lending criteria?

What is a large mortgage loan?

Lenders vary with what they offer as large mortgage loans, with some starting from £500,000 and others from £1 million. How much you can borrow depends on your affordability, including the amount you can pay as a deposit, the loan-to-value (LTV) ratio you need to borrow as well as your income and assets.

What difficulties can be encountered with large mortgage loans?

Whilst you may have adequate cash or savings to purchase a high-value property, you may prefer not to tie up all of your funds in it. Taking out a large mortgage loan gives you the flexibility to maintain your liquidity and have funds to hand for other investments. However, it’s not always straightforward when approaching high street lenders to obtain a large mortgage loan.

Lending limits

When applying for a large mortgage loan, the first hurdle is that not all high street lenders offer them. Those who do may restrict the amount they’re prepared to lend. This is because such a large loan for one high-value property increases their risk. This is where specialist lenders and private banks come in. They specialise in large mortgages and many offer loans that go into the tens of millions. Some lenders don’t have an upper limit.

Your income or ownership structure

Another issue you may encounter is your income structure. As a high net worth individual, you probably have an irregular income. This may include being paid in bonuses, share dividends and foreign currencies. High street lenders generally prefer borrowers to have a steady income to reduce their risk. You may have a complicated ownership structure, such as having a limited company, a trust or a foundation. Whichever scenario applies to you, high-street lenders tend to have a set mortgage application process to follow. This can be both time-consuming and frustrating when it comes to your complex situation.

Specialist lenders and private banks, however, offer bespoke solutions for borrowers looking for large mortgage loans. A high net worth mortgage, for example, offers incredible flexibility. You can benefit from a high LTV, an interest-only arrangement and a short term if you prefer. You may want to protect your assets or require a much larger loan than is offered by high-street lenders. Whatever your situation, no matter how complex it is, a specialist lender or private bank will take a holistic approach when assessing your case. They will tailor a large mortgage solution to specifically meet your needs.

Let us handle the complexity of your large mortgage loan

To take advantage of using a specialist lender or private bank for a large mortgage loan, you usually need to use a specialist mortgage broker as an intermediary. Our expert brokers – located throughout Kent, London and Edinburgh – are highly experienced in arranging high-value mortgages for clients with complex cases. Simply give us a call on 01322 907 000 to discuss your situation and discover how we can help with your large mortgage loan requirements.

As an alternative to a residential or commercial large mortgage loan, you may prefer a large bridging loan instead. This type of finance gives you access to the funds you need faster. As with a large mortgage loan, a large bridging loan is arranged on a bespoke basis. With our brokers’ extensive expertise and the flexibility offered by niche lenders, you can save time with your application, save costs on your chosen lending product and proceed quickly with your project.