Arranging a mortgage worth £1 million or more isn’t as straightforward as applying online and waiting for approval. When you’re borrowing this much, everything from how your income is structured to where your assets are held plays a role.
These mortgages require a tailored approach, and the right guidance can make a significant difference. If you’re considering high-value finance, keep reading to find out how million-pound mortgages work and what lenders look for.
What Is a Million-Pound Mortgage?
A million-pound mortgage is a home loan of £1,000,000 or more, usually secured against luxury properties in prime locations like London or the Home Counties. These loans aren’t standardised.
They’re tailored to reflect your entire financial profile, including income, assets, and liabilities. Working with specialist mortgage brokers is often key, as they can structure bespoke lending solutions suited to individuals with complex financial arrangements and high-value borrowing needs.
Who Usually Takes Out These Mortgages?
Million-pound mortgages are most common among high-net-worth individuals. This includes entrepreneurs, company directors, property investors, and those with substantial international income. Rather than relying solely on salary or payslips, lenders may assess:
- Dividend income from businesses
- Overseas property or assets
- Trust fund distributions
- Investment portfolios and securities
- Crypto holdings or luxury assets
Traditional banks often struggle to assess such profiles using standard approval models. That’s where private banks and boutique lenders become more relevant. They’re equipped to consider your entire financial footprint.
How Lenders Assess Your Eligibility
Securing a mortgage of this size involves more than just proving income. Lenders want confidence in your ability to manage large debt responsibly. Here’s what they typically evaluate:
Income and Cash Flow
Even if your income varies, lenders want to see consistency or a reliable source of funds. You may need to demonstrate how you’ll cover repayments through business income, asset sales, or dividends.
Net Worth and Assets
The more wealth you hold across different areas, such as property, investments, or art, the more options you’ll have. Some lenders may even offer interest-only terms or flexible repayment schedules based on your asset base.
Credit History and Liquidity
While perfect credit isn’t always necessary, a solid history helps. Lenders will also want to see if you can access enough liquidity to cover deposit requirements, typically 25 to 40 percent of the property’s value.
Why Structure Matters in High-Value Lending
The way your mortgage is arranged can affect everything from tax planning to international compliance. For example, if you’re purchasing through a company or using offshore income, the mortgage must be structured to align with those elements.
Expert brokers help by coordinating with legal and tax advisers, ensuring that the mortgage complements your overall wealth strategy. This joined-up thinking is crucial when assets, income, and plans stretch across borders.
Tailored Support for Complex Cases
Million-pound mortgages suit clients who value discretion, tailored solutions, and a lender who understands complex needs. With access to hundreds of global financiers, including private banks and family offices, you can secure flexible lending options whether purchasing in London or refinancing a high-value property across borders.
Final Thoughts
Million-pound mortgages go beyond property value. They’re tailored to your full financial profile. If you have complex income or global assets, this option offers more flexibility than standard lending. Work with a specialist adviser to secure the right solution and navigate every stage of the process with clarity and confidence.
