How to get a million pound mortgage
11 May 2021
What are high net worth mortgages?
High net worth mortgages are typically classed as loans over one million pounds to individuals with an income of at least £300,000.
Million pound mortgages or greater can be difficult to place. Peritus Private Finance has access to specialist lenders and the industry experience and knowledge to help you secure these niche mortgages.
How to get a million pound mortgage
Individuals looking for a mortgage of over one million pounds can encounter several difficulties.
Firstly, many lenders have a maximum loan size of £1m, and at this loan amount, they may only offer between 60% and 75% loan to value. For example, even with a 15% deposit, you may not be able to purchase a property of circa £1.2m.
Secondly, as a high net worth individual, you may have complex/multiple income streams received in many different ways. In order to successfully apply for this type of mortgage, it requires great care when packaging and presenting the cases to specialist lenders.
How can we help?
Lender access
As mentioned above, there number of lenders lending more than £1m is limited, however, thankfully there are options available. Peritus have access to specialist lenders and private banks with exclusive products that can consider lending above £1m. These lenders can also consider lending at higher loan to values meaning you may be able to secure a purchase with a lesser deposit.
Market Knowledge and experience
Our advisers have years of experience placing million pound mortgages for high net worth individuals. It is this experience that ensures Peritus clients secure the best deal to fit the clients’ specific needs, in the quickest time available. Peritus provide clients with bespoke options as part of our professional and efficient service.
How has Peritus helped? Case studies
Residential Purchase of £4.9m with a 15% deposit
Peritus were delighted to assist a client of ours with an 85% mortgage against a property being purchased for £4.9m. We had to look beyond the High Street to a private bank that could look at the client's overall position and future trajectory. The transaction was complicated by the fact the client was working in Italy and fell outside of affordability for most other lenders.
Residential Purchase of £4.1 income stretch
Peritus recently secured borrowing for one of our clients looking to borrow £1.8m against a property being purchased for £4.1m. This was an income stretch for the majority of the market. However, due to the adviser’s market knowledge and lender access we were able to secure the mortgage at an income multiple of circa 6 times the client's income.
Residential Purchase of £3.5m
Peritus have been able to recently assist a client with a new residential purchase of £3.5m by relying on projections of the client's accounts over the next 3 years. The client approached Peritus with just under 2 years of accounts and Peritus were able to assist as the client had secured contracts showing future income, which although not yet paid, could be relied on. This was in conjunction with the lending being at 6.5x their income.
If you are a high net worth individual looking for a mortgage, or you know of anyone who is looking for a specialist mortgage, please do not hesitate to get in touch.
We like to make things happen.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
