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700000 Pound Mortgage

Are you looking for a 700,000-pound mortgage but not sure where to begin? Read our concise guide to understand the details.
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Getting a £700,000 mortgage in the UK might seem like a momentous task. But it’s by no means impossible.

If you can get the amount approved, it can open up opportunities to buy prime property in the UK. However, it’s a complex task that must be approached systematically and professionally.

Today, we’ll explore what you need to know about 700000 pound mortgage in the UK.

Why Would You Need Such A High Mortgage Amount Anyway?

To be honest, property prices in the UK have been typically rising, and £700,000 is a very common price tag for properties in prime locations, such as central London.

If you’re looking to buy such a prime property, then this is a sum of money you might consider to get a mortgage. 

700000 Pound Mortgage Eligibility Requirements

Eligibility requirements for a £700,000 mortgage are the same as with any other mortgage amount. Lenders will look at things such as your credit history, income and employment history, assets and liabilities, age, and the property in question to determine the loan amount.

You will also need to put down a deposit amount of around 10-25% of the property value typically. Keep in mind that for a £700,000 property, this deposit amount required can be higher as often lenders want a higher deposit to minimise risk when they are lending such a high amount.  

Factors To Keep In Mind When Taking A £700,000 Mortgage

You don’t really need us to tell you that taking out such a large mortgage is a significant financial responsibility. So, there are certain factors you need to keep in mind before taking the plunge:

  • The interest rates, which can be fixed or variable
  • Repayment strategy, such as traditional or interest-only
  • Careful budgeting for monthly repayments
  • Market volatility 
  • Fluctuations in property valuation
  • Income stability

Since there are so many complex factors at play, it’s best to seek professional advice when obtaining such a large loan amount.

At Lendingline, our experts have the required knowledge and experience to help you get everything in order for fast approval of your mortgage application.

The brokers we partner with can help you compare offers, get bespoke deals, and negotiate terms that suit you. Additionally, they will assess your unique financial situation and recommend products that are tailor-made for you.

Related: Million Pound Mortgage

Monthly Repayments For A 700,000 Pound Mortgage

As the borrower, one of the most essential aspects of a large loan that you need to evaluate is the monthly payments.

While too large a payment can put your budget under pressure, too small one can lead to longer terms and, hence, greater interest payments in the long run. So, you need to strike the right balance between the two.

To give you an idea, here’s an example: if you’re taking out a £700,000 mortgage with a term of 25 years at 3%, your monthly payments would be between £3300 and £3500.

However, in case of an interest-only mortgage at the same rate and term, you’ll need to pay £1750 per month. This is an example of choosing the correct repayment type subject to meeting the lenders criteria where you look at interest only. 

The monthly payments are also affected by the amount of deposit you’ve made. In general, the larger your deposit, the lower your monthly repayments will be as lenders offer lower interest rates.

So, if you’re looking for an optimum monthly payment, then ensure you can lower your interest rates by increase your deposits as much as possible if this is what you wish. 

Read More: How to get 500K Mortgage

Frequently Asked Questions (FAQs)

1. Is it allowed to make overpayments on a £700,000 mortgage to repay it earlier?

Yes, overpayments on such large mortgages are allowed, which enables you to pay off the loan earlier, resulting in lower overall interest. However, the lender may impose certain conditions on this, so it’s essential to check your loan agreement carefully. Ultimately, overpayments will be dependant on the specific lender and mortgage product applied for. 

2. Is it possible to use inherited money to put down the deposit for a £700,000 mortgage?

Yes, you can use inherited or gifted money to make the deposit, but the lender will need to verify and document it. It’s best to consult with a mortgage advisor to ensure that you comply with your lender’s requirements.

3. Can the lender put restrictions on the type of property I can purchase with my mortgage?

Lenders might have their own terms and conditions about the type of property they’ll allow you to buy, so it’s best to discuss this with your lender or mortgage advisor at the very beginning of the mortgage process.

4. How long does it take for a £700,000 mortgage to get approved?

This is tough to estimate as it depends on the complexity of your application, the documentation, and the lender’s internal processes. However, you can expect the entire process to take several weeks to complete.

Our goal is simple - to provide most up-to-date and accurate mortgage information to make your mortgage journey as stress-free as possible. Have a question? Fill up the quick form and one of our mortgage advisor will connect with you.

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