Table of Content
Introduction
Securing a large mortgage can be a complex process, especially when you’re working with a 10% deposit. Mortgage lenders typically classify loans exceeding £500,000 as large, but they can go significantly higher. While high earners and financially stable applicants may assume they’ll have easy access to large loans, lenders tend to view them as higher risk.
Although 5% deposit mortgages exist, the options decrease as the loan size increases. In this guide, we’ll explore how much deposit you’ll need for large mortgages, which lenders may be suitable, and the factors that impact your eligibility.
How Much Deposit Do I Need for a Large Mortgage?
The deposit required ultimately depends on your financial situation and the size of the loan. While options exist at various deposit levels, the higher the loan amount, the fewer lenders are available. This can also mean slightly higher interest rates and stricter lending criteria.
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£500,000 Mortgage
For a £500,000 mortgage, many mainstream lenders still allow a 10% deposit, meaning you would need at least £50,000 upfront. Some lenders may require 15%, but overall, there are still plenty of options.
£750,000 Mortgage
Once you borrow above £750,000, lender choices start to become more limited. Many mainstream lenders require a 15% deposit, but a small number will still consider 10% deposits. If you have less than 10%, your options are extremely limited and likely restricted to specialist lenders.
£1 Million Mortgage
For mortgages of £1 million or more, most high street lenders will expect at least a 15% deposit. Lenders willing to accept a 10% deposit at this level tend to be more specialist and may charge higher rates. 95% LTV options for loans of this size are extremely rare.
Which Lenders Are Good for Large Mortgages?
The best lender for a large mortgage will depend on your income, affordability, and the available rates at the time. However, some mainstream lenders tend to be more flexible than others when it comes to larger loans:
- Santander, Nationwide, and Metro Bank – More accommodating for high-value mortgages.
- Kent Reliance and specialist lenders – Offer options for large mortgages, often at a higher cost.
For loans over £2 million, you may need a bespoke underwriting approach with a specialist lender.
What Rates Are Available for Large Mortgages?
Interest rates on large mortgages depend on the lender, your deposit size, and the wider market conditions:
- 15% deposit – Unlocks a competitive range of rates from mainstream lenders.
- 10% deposit – Still has good options, but fewer lenders are available.
- Sub-10% deposit – Expect to pay a premium, with options often limited to specialist lenders.
Other Factors That Affect Large Mortgages
While deposit size is a key factor, lenders also assess:
- Residency status – Some lenders may have restrictions for non-UK residents.
- Property type – Flats, new builds, and non-standard properties may require a higher deposit.
- Affordability – Lenders typically assess income, existing debt, and other financial commitments.
- Purpose of the mortgage – Buy-to-let mortgages often require a larger deposit than residential ones.
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Can I Get Interest-Only on a Large Mortgage?
Yes, interest-only mortgages are available for large loans, but they typically require a minimum 25% deposit and a clear repayment strategy. Some lenders may allow a mix of repayment and interest-only structures.
Can I Get an Offset Mortgage for a Large Loan?
Offset mortgages are available for large loans, but not all lenders offering high-value mortgages provide this option. Offset mortgages can be more expensive, so it’s important to calculate the overall savings before committing. Use an offset mortgage calculator to assess whether it’s the right choice for you.
How Do You Qualify for a Large Mortgage?
For mortgages below £2 million, the application process is similar to standard mortgages, with income assessments and affordability checks. However, for loans exceeding £2 million-£5 million, lenders may require bespoke underwriting and additional financial documentation.
Can I Get a Large Buy-to-Let Mortgage?
Yes, large buy-to-let mortgages are available, but they often require a minimum 25% deposit. Lenders assess affordability in two ways:
- Rental income assessment – The expected rent must meet lender stress test requirements.
- Top slicing – Some lenders allow applicants to use surplus personal income to meet affordability criteria.
What Are the Costs of a Large Mortgage?
Costs depend on the loan size and lender, but consider:
- Interest rates – Some lenders offer better deals for larger loans or premier clients.
- Fees – Arrangement fees can range from £0 to £2,500 or be a percentage of the loan.
- Higher deposit discounts – A larger deposit may help secure a better rate.
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Do I Need to Use a High-Net-Worth Mortgage Broker?
While it’s not a requirement, using an experienced high-net-worth mortgage broker can significantly increase your chances of securing the best deal. Brokers have access to specialist lenders and exclusive rates that may not be available directly to borrowers.
Summary & How Strive Mortgages Can Help
Securing a large mortgage with a 10% deposit is possible, but it requires careful planning. The right lender and product will depend on your financial profile, the loan size, and the deposit amount.
At Strive Mortgages, we specialise in large mortgages and can help you:
- Assess your borrowing power and eligibility.
- Find the best lenders and rates for your situation.
- Guide you through the mortgage application process to ensure success.
If you’re considering a large mortgage, get in touch with Strive Mortgages today for expert guidance and support.
FAQs
Yes, many banks offer million-pound mortgages, but higher deposits and stricter criteria apply.
Costs vary based on deposit size, interest rates, and lender fees. A mortgage broker can provide a tailored estimate.
Mainstream lenders typically process large loans within 1-2 weeks, while specialist lenders may take 3-6 weeks.
This is rare, but some specialist lenders may consider it. Most lenders require at least a 15% deposit.
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Jamie Elvin
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