With the average London house price shooting up to £472,000, the number of people tempted into looking at a million pound mortgage is sure to increase. For some, this may be one of the only ways to secure your dream home in some of the most desirable locations in the Capital.
However, this solution is not just helpful for those looking to get on the London property ladder, as the number of houses in Cornwall valued at over £1,000,000 is set to quadruple by 2030. If you’re thinking of taking out one of these mortgages, then the experts at Enness Private have put together a few essential things you need to know.
Are million pound mortgages hard to get?
It’s unlikely you’ll find the major high street lenders offering mortgages of this amount to clients with average salaries because they are a very big risk – especially if the client lacks the means of paying it back. Often, you will need to provide evidence of your income stream, financial history and credit rating if you want your application to be successful.
Many of the lenders who offer this service are private or internationally based with little exposure, so it’s important that you contact a broker that has extensive links with the major institutions in this sector to ensure you get the best deal – and this is where Enness Private excels.
Will having debt affect my chances?
Plentific believes that debt is one of the first things brokers look for in an application. Having a County Court Judgement or a credit card default against your name may hinder your application because it will create doubts over whether you can afford the repayments on a £1,000,000+ mortgage. This is why it’s vital you get your affairs in order as soon as possible – so you can work with your lender to find the best solution for you.
Can I get a million pound mortgage if I live abroad?
Yes but, once again, you will need to demonstrate to the lender that you can afford the repayments. You will need to produce bank statements and payslips, and you will need to ensure they are in English – otherwise your application will not be acceptable.
Trusting a well-connected broker like Enness Private to handle your affairs while you’re overseas means that we can secure exclusive rates for our clients – ones which would be unreachable to the high street lenders.
Will I need to pay a deposit on a million pound mortgage?
For the vast majority of million pound mortgages, a deposit will be required because this helps to provide reassurance to the lender. The amount you pay will depend on the amount you borrow, but Mansion Global believes this rate is around 35-40%.
However, with Enness Private, if you can contribute at least 25% of the purchase price, we will be able to help you secure the most cost-efficient payment structure.
Million pound mortgages can often be tricky and littered with rules and regulations, so expert help is essential. Why not contact Enness Private and let us guide you through the options. Our exceptional pool of clients has made us one of the most trusted brokers in the UK, and lenders often come to us first with their most exclusive deals – meaning we are sure to have a plan that suits you.