Author: Dot Piper

In some ways it’s best not to be a millionaire. Honestly. When it comes to getting a mortgage, for instance.

There has been an immense increase in the property market for homes valued at £1m plus, according to Land Registry figures. This demand is in some part explained by the excellent growth in the stock market, combined with an outstanding City bonus season.

This has not caused the avalanche of lenders which you might expect. Many of them are exercising a degree of caution when it comes to the more affluent mortgage seeker. Surprisingly, the really good deals go to the smaller borrower. There is the launch of a headline making, spectacular, never to be beaten, amazingly low mortgage, which sounds too good to be true. In reality the amount of money which lenders have available at this rate will be very limited and certainly not available for large loans. Also, bigger is not always better, and many lenders would prefer to lend 10 borrowers £200,000 rather than one loan of £2m, in order to spread the risk.

It is, however, beginning to get easier to find lenders willing to fund the loans on houses valued at £1m or more, as the number of properties in these price brackets rocket. Recent figures from the Land Registry show a massive increase in the number of houses sold for more than £1m.

When it comes to getting a mortgage, five of the top deals we found on offer are:

1. Lloyds TSB, available through Savills Private Finance, offer a two year tracker at a rate of 3.99%. There is a fee of £199, which rises to £999 on a loan greater than £1.5m. There is no maximum loan size and they will lend 95% of the value of the property.

2. The Halifax, also a 2-year tracker, offers a rate of 4.24%. The fee is £1,499, but this includes valuation and legal work on re-mortgages up to 75%. Maximum loan size is £2m. They will lend 90% of the property value. This available through selected brokers.

3. Bank of Scotland offer a 2-year tracker, with a rate of 4.29%. The fee is 0.1%. They will lend 90% of the value of the property. The minimum loan is £500.000 and the maximum is £2m. This is on offer through brokers.

4. Bank of Scotland. 2-year tracker, with a rate of 4.39%, the fee is £599, and they will lend up to 75% of the value of the property. The minimum loan is £500,000 and the maximum is £5m. This offer is direct from the Bank of Scotland.

5. Cheltenham and Gloucester offer a two year fixed rate if 4.45%, with a minimum deposit of 10%. The fee is £699 and the maximum loan is £1.5m.

It is probable that some of the people requiring these large mortgages may have complicated financial affairs and it would be especially advisable to seek the advice of a broker, who will talk directly with the underwriters. They will certainly find the best company for your particular needs.

This is the best advice we can offer, whatever the size of loan. Contact an on-line broker and a whole range of options will be available to you. Millionaire or not!

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