We asked our brokers to describe the ‘best mortgages’ available if someone wants to borrow £3 million pounds, and the answers we received are below. These mortgages will be available for higher and lower amounts subject to status.
‘Best’ isn’t always about the interest rate, it depends on your circumstances, your income and your plans.
We look at Loan to Value (LTV), Early Repayment Charges (ERC’s) Assets Under Management (AUM) as well as private banking and bridging finance.
Cheapest £3 million pound mortgage rates in the market
£3 million pound variable rate mortgage
| We asked our brokers to describe the ‘best mortgages’ available if someone wants to borrow £3 million pounds, and the answers we received are below. These mortgages will be available for higher and lower amounts subject to status. ‘Best’ isn’t always about the interest rate, it depends on your circumstances, your income and your plans. We look at Loan to Value (LTV), Early Repayment Charges (ERC’s) Assets Under Management (AUM) as well as private banking and bridging finance. Cheapest £3 million pound mortgage rates in the market£3 million pound variable rate mortgage
£3 million pound fixed rate mortgage
*Interest-only subject to repayment vehicle and status.
Cheapest 5 year fixed mortgage for £3,000,000
Best Private Bank for £3m mortgagesWith Assets Under Management
Without Assets under management (dry mortgage)
Highest loan to value90% Loan to Value
In exceptional circumstances, we can arrange up to 95% loan to value. Reserved for very high earners from sports, entertainment and business leaders in their fields. There has to be a reason why this is required and the loan to value will need to be reduced rapidly with agreed over payments. 100% loan to value can be arranged if cash or other assets are lodged with the bank as additional security. This is useful for Non-Doms, Foreign Nationals or those who have recently sold business, for example.
For a fast offer and completionSpecialist lenderWhere we control the process; offer within 7 days possible. This would be used where the transaction has to be completed urgently and there is a subsequent refinance when time is more relaxed.
Utilising RelationshipIf time is less pressured and there is a very clean and high grade credit position we would lean on our excellent private bank relationships to create best in class service. This is what we have achieved in 2 weeks recently
With no or no provable little incomePrivate Bank based on Asset or Net WorthThis lender is also great if you have no income but a large amount in Investments or other assets. Instead of needing to show income multiples, as you would with a high street bank, if you have over £3m of net assets (mostly investments) then the lender can use the High Net Worth exemption rules to justify the mortgage.
Personalised agreement; a mortgage structured to your needsAnother option is to individually create a mortgage based on your circumstances. This is highly negotiated and tailored to mitigate risk and work within regulations. Options include pre-paying interest, 3rd party security or intangible factors. Below are typical rates
Buy to let mortgages over £3mBest Price
Highest Loan to Value85% loan to value is possible but this often requires a very strong income and asset profile on top of the rental income generated by the property.
In a Limited Company
Cheapest Bridging Rate
Interest can be rolled up or added within LTV limits. For exceptional cases, like everything else, this can be negotiated. All of these rates and products were available on 10/01/2019 and of course are subject to status. For a personalised illustration based on your circumstances, please speak to our expert team on 0207 758 9393. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
£3 million pound fixed rate mortgage
| Rate: | 1.50% 2 year fixed |
| Lender Fee: | £995 |
| Max LTV: | 60% |
| ERCs | 2% year 1, 1% year 2 |
| Repayment Type: | Repayment mortgage or Interest only up to 50%* |
*Interest-only subject to repayment vehicle and status.
Cheapest 5 year fixed mortgage for £3,000,000
| Rate: | 1.95% 5 year fixed |
| Lender Fee: | £995 |
| Max LTV: | 60% |
| ERCs | 5% year 1, 4% year 2, 3% year 3, 2% year 4, 1% year 5 |
| Repayment Type: | Capital and interest or interest-only up to 50% |
Best Private Bank for £3m mortgages
With Assets Under Management
| Rate: | 1.50% over margin for 5 years |
| Lender Fee: | 1% of the loan amount |
| Max LTV: | 70% |
| ERCs: | None |
| Repayment Type: | Interest-only |
| AUM required: | £1,500,000 minimum, then negotiable |
Without Assets under management (dry mortgage)
| Rate: | 2.39% 2 year fixed |
| Lender Fee: | 0.50% of the loan amount |
| Max LTV: | 75% |
| ERCs: | 2% in year 1 & 1% in year 2 |
| Repayment Type: | Interest-only |
Highest loan to value
90% Loan to Value
| Rate: | 4.04% variable for 2 years |
| Lender Fee: | 0.5% of the loan amount |
| Max LTV: | 90% |
| ERCs: | None |
| Repayment Type: | Capital and interest or interest-only up to 50% |
In exceptional circumstances we can arrange up to 95% loan to value. Reserved for very high earners from sports, entertainment and business leaders in their fields. There has to be a reason why this is required and the loan to value will need to be reduced rapidly with agreed over payments.
100% loan to value can be arranged if cash or other assets are lodged with the bank as additional security. This is useful for Non-Doms, Foreign Nationals or those who have recently sold business, for example.
For a fast offer and completion
Specialist lender
Where we control the process; offer within 7 days possible. This would be used where the transaction has to be completed urgently and there is a subsequent refinance when time is more relaxed.
| Rate: | 0.48% per month (5.76% annually) |
| Lender Fee: | 2% of the loan amount |
| Max LTV: | 60% Gross |
| ERCs: | 1 month minimum |
| Repayment Type: | Interest-only |
Utilising Relationship
If time is less pressured and there is a very clean and high grade credit position we would lean on our excellent private bank relationships to create best in class service. This is what we have achieved in 2 weeks recently
| Rate: | 2.39% 2 year fixed (the rate was discounted to 2.24% as an exception to policy) |
| Lender Fee: | 0.50% |
| Max LTV: | 75% |
| ERCs: | 2% in Year 1 & 1% in Year 2 |
| Repayment Type: | Full interest-only |
With no or no provable little income
Private Bank based on Asset or Net Worth
This lender is also great if you have no income but a large amount in Investments or other assetrs. Instead of needing to show income multiples, as you would with a high street bank, if you have over £3m of net assets (mostly investments) then the lender can use the High Net Worth exemption rules to justify the mortgage.
| Rate: | 1.49% over Base for 2 years |
| Lender Fee: | 0.5% of the Loan amount |
| Max LTV: | 60% Loan to Value |
| ERCs: | None |
| Repayment Type: | Interest Only |
Personalised agreement; a mortgage structured to your needs
Another option is to individually create a mortgage based on your circumstances. This is highly negotiated and tailored to mitigate risk and work within regulations. Options include pre-paying interest, 3rd party security or intangible factors. Below are typical rates
| Rate: | 2.75% plus BOE base,2 year fixed – 3.1% & 5 year fixed 3.5% are typical offers |
| Lender Fee: | 0.50% |
| Max LTV: | 60% |
| ERCs: | None for variable (2% per annum for fixed) |
| Repayment Type: | Interest-only |
Buy to let mortgages over £3m
Best Price
| Rate: | 2.79% 2 year fixed |
| Max LTV: | 70% |
| Lender Fee | £1,999 |
| ERCs: | 5/4/3/2/1/NONE |
Highest Loan to Value
85% loan to value is possible but this often requires a very strong income and asset profile on top of the rental income generated by the property.
| Rate: | 3.99% |
| Lender Fee: | 1.25% |
| Max LTV: | 85% |
| ERCs: | 4% year 1, 3% year 2 |
| Repayment Type: | Interest-only |
In a Limited Company
| Rate: | 3.39% |
| Lender Fee: | 1.25% |
| Max LTV: | 75% |
| ERCs: | 3% years 1&2 |
| Repayment Type: | Interest-only |
Cheapest Bridging Rate
| Rate: | 0.48% per month |
| Lender Fee: | 2% fee |
| Max LTV: | 60% Gross |
| ERCs: | 1 month minimum |
| Repayment Type: | Interest-only |
Interest can be rolled up or added within LTV limits. For exceptional cases, like everything else, this can be negotiated.
All of these rates and products were available on 10/01/2019 and of course are subject to status. For a personalised illustration based on your circumstances, please speak to our expert team on 0207 758 9393.
