LARGE MORTGAGE LOANS
Buying high-end property
LARGE MORTGAGE LOANS
Buying high-end property
Large Mortgage Loans
In many ways, buying a high-end property is very similar to purchasing a standard family home. You’ll pay a deposit and want to take out a mortgage, only with far larger sums of money. Unfortunately, those large figures can erect a few extra hurdles, which is why you need specific companies, offering large mortgage loans, to help turn your dreams into reality.
Here’s all you need to know about this unique situation.
Why Are Specific Large Mortgage Companies Needed?
When financing the purchase (or remortgaging) of a high-end property, many lenders won’t accept your application simply because the figure you wish to borrow is above their maximum threshold. It doesn’t matter whether you have the deposit to secure a good LTV ratio or if you have a guaranteed that means you can easily meet the repayment terms.
This is because most lenders view one large account as a bigger risk than lots of little ones. Large mortgage loans companies do exist, though, and are happy to lend you larger sums of money. This is, of course, dependent on you satisfying their criteria.
What Figure Is Considered A Large Mortgage Loan?
As a general rule of thumb, most people consider loans of above £500,000 to fall under the large mortgage loans category. However, some non-large mortgage loan lenders will be able to satisfy the lower bracket, especially if the LTV ratio is under 80%. However, large loan lenders are often willing to lend a multi-million-pound fee.
Aside from the far higher ceiling, the other major difference between these companies and traditional lenders is that they will often use far more generous multipliers. While standard mortgages are usually capped at a maximum of 5x your salary, this route offers up to 7x.
Can Company Directors get Large Mortgage Loans?
As the director of a company, your earnings and worth can be a little harder to prove. Even large loan lenders will often limit their considerations to earned salary and dividends. This can be a little problematic if you tend to leave profit in the business. While you could take it out now, the fact you’ll need to prove earnings for two years can cause a few issues and delays.
Some large mortgage lenders will take your share of the company’s net profit into account, though. Large mortgage brokers can help you find them, and prepare the application so that you have the best chance of still being accepted.
How To Get The Best Large Mortgage Deal?
In many ways, applying for large mortgage loans is very similar to a standard mortgage application. Proof of earnings, a large deposit, and a good credit score can lend you a better interest rate. Furthermore, while the pool of potential lenders is far shallower, it still pays to search the market and understand the full terms including additional fees.
The best thing you can do, however, is to connect to a large mortgage broker. Their dedicated and specialised support will go a long way to securing the best deal and providing peace of mind throughout every stage of the process.
If you are considering a Large Mortgage then we would love to speak to you here at Active Mortgage. We can arrange a detailed discussion with you to give you all of the fundamentals that you may need to ensure that you are going to be accepted.
These articles are for information only and no advice should be conferred from the content within. Please seek independent financial advice prior to taking any action.
As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments.
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