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3 Million Pound Mortgage

A 3 million pound mortgage isn’t easy to come by, but with the right guidance, you can get one. Read on to find out how.
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The rate of mortgage approvals in the UK has fluctuated significantly since 2020. If you’re looking for a 3 million pound mortgage in this market, you might be worried about it getting approved.

But don’t worry! With our guide by your side, you’ll know everything there is to know about getting a £3 million mortgage approved. So, let’s not waste time and get to the details.

Where To Get A 3 Million Pound Mortgage

Since the amount involved here is considerable, not every lender would be able to get you the mortgage. Most lenders have lending caps in place, which prevent them from offering such large mortgage amounts.

Fortunately, there are options available. Mainstream banks and private lenders, for instance, may consider offering £3 million mortgages, provided you meet their specific requirements.

These lenders usually offer bespoke deals for high-value customers, though most of them operate through brokers only. That’s why, to get such a large loan approved, it’s best to appoint a professional broker with experience in handling such large loans.

£3 Million Mortgage Repayment Costs

The monthly repayment for a £3 million mortgage will depend on the following factors:

  • The interest rates
  • The deposit amount 
  • The term of the mortgage
  • The type of mortgage, i.e. repayment or interest-only

As you can understand, the higher the interest rates are, the higher the amount you’ll need to pay per month. For instance, if you’re taking out a £3 million mortgage for a standard term of 25 years at 3.5%, then for a repayment mortgage, your monthly payment will come to around £21,400, whereas for interest only, it will come to £8,700 or thereabouts.

Some of the factors that need to work in your favour in order to get the mortgage application are:

  • An excellent credit history
  • A large amount of deposit
  • Proof of regular income
  • A good condition property of standard construction
  • An experienced mortgage broker who can help you

If any of these seem unattainable at the moment, please contact us at Lendingline. Our mortgage experts can help you get the best possible deals, even for a £3 million mortgage.

Additional Costs To Consider

Please note that the example monthly cost is simply an illustration; the real scenario is usually a bit more complex. Apart from the repayment amount, there are other costs to consider when taking out a mortgage. Some of these are:

  • Lender’s fees
  • Arrangement fees
  • Legal fees
  • Insurance costs
  • Surveying costs

However, these are mostly one-time costs that you’ll need to bear during the application process.

Eligibility Criteria For A £3 Million Mortgage

As always, the most important eligibility criteria for any mortgage is your monthly or yearly income. Most mortgage providers have their own benchmarks for this, and this is typically calculated as per your yearly salary.

For instance, it’s standard practice to consider the loan approval amount as 4.5-6 times your annual income. So, if you’re looking for a £3 million loan, and the multiplier being used is 5, then you need an annual income of about £600,000. 

However, if you are a high-net-worth individual, then you might be able to get bespoke deals with higher multipliers in place.

Other than income, some of the other criteria lenders consider are:

  • A good credit history
  • Whether you’re salaried or self-employed
  • Your age
  • Extra earnings from secondary sources
  • The amount of deposit you can put in
  • The location and type of property you’re about to purchase

Each lender you approach will have its own variations of these rules. Some might want the last three years’ profit records if you’re self-employed, while others might require collateral to be put down as security for the loan.

If you’re determined to get your £3 million mortgage application approved, then we once again recommend working with professional mortgage experts who can guide you in this matter.

Frequently Asked Questions (FAQs)

1. What deposit amount is needed for a £3 Million Mortgage?

For a £3 million mortgage, you’ll usually need a deposit of around 20%, or £600,000. But in special cases, you can get a mortgage of around 95% LTV, which means you’d need a deposit of around £150,000.

2. Can a £3 million mortgage be interest only?

Yes, some specialist lenders might be able to offer a £3 million mortgage on an interest-only basis. However, for this, you’ll need to find a lender that offers high-net-worth mortgages. And meet their eligibility criteria for the type of loan you’re looking to get.

3. Is working with a broker mandatory for a £3 million mortgage?

In theory, no. But in practice, it’s best to work with a professional to get the loan approved faster. Especially if you have a complicated credit history, then we recommend going with a broker.

Your home may be repossessed if you do not keep up repayments on your mortgage.

All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.

CeMAP & CERER Qualified Mortgage Adviser

I am CeMAP & CERER qualified mortgage adviser and have helped a number of clients realise their dreams when they thought it would not be possible. I’m skilled at getting mortgages sorted for people with a history of missed payments, CCJs, defaults, debt management programmes, IVAs and bankruptcies.

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