Mortgages over £2 million

The loan size is the starting point.

If you are considering borrowing £2 million, £3 million or more, start with the loan you need and the property it would support. Explain the purchase price or current value, any existing borrowing, available funds and the reason for the finance. Taxes, legal costs, valuation, advice fees, works and a cash reserve need their own budget.

This guide focuses on residential mortgages, including London homes and substantial properties elsewhere in the UK. A high-value property or a large asset base does not itself establish that a particular mortgage is available. The individual borrower, property, repayment plan and current terms need assessment.

For HNW and UHNW borrowers, show the whole picture.

High-net-worth and ultra-high-net-worth circumstances can involve business interests, property, investments and income received in several ways. The practical brief should distinguish what you own from the income available to meet payments and the assets you can actually use. These descriptions do not automatically place you in a particular lending or regulatory category.

• Income: separate salary, variable pay, business distributions, rent and other sources, with an explanation of anything changing.
• Assets and debts: show ownership, existing borrowing or other claims, and whether money is available or committed elsewhere.
• Liquidity: identify cash needed for living costs, tax, business commitments and planned expenditure after completion.
• International circumstances: include residence, income and asset countries, currencies, transfer timing and the professionals already advising you.

With your permission, the mortgage discussion can be coordinated with existing legal, tax and investment advisers. Their specialist advice remains separate. Start with an outline rather than sending sensitive records in an initial message.

Repayment, interest-only or part-and-part?

MoneyHelper explains repayment and interest-only mortgages. The FCA defines a repayment strategy around how outstanding capital will be repaid.

Possible repayment resources: questions to work through.

These are subjects for an individual assessment, not a list of accepted repayment methods or recommendations. Show which resource is intended to meet which debt, so the same money is not counted twice.

Selling another property

Identify the owner, current value evidence, existing debt and expected net proceeds after costs and tax. Consider occupation, the ability to sell and a delayed or lower-priced sale. Gross property value is not the amount available to repay a mortgage.

Selling the mortgaged home or downsizing

Include the cost of the next home, moving and any other debts. The plan must leave a realistic housing arrangement after the mortgage is cleared. Do not depend on future house-price growth to make the figures work.

Stocks, shares, funds and investment ISAs

Record ownership, current value, existing pledges, access restrictions, currency and when funds could be realised. Investment values can fall; selling near the mortgage end date could crystallise a loss. Concentrated holdings and illiquid assets create different uncertainties. A projected return is not a guaranteed repayment amount.

Discuss investment suitability, tax and the timing of asset sales with appropriately qualified advisers. This mortgage guide does not recommend investments, selling particular holdings or borrowing to invest. The FCA explains investment risk and returns, including the possibility of losses.

Cash, planned capital payments and other events

Separate funds already held from an expected bonus, business sale or inheritance. Uncertain future events should not be treated as guaranteed. Check any restrictions, charges and the timing of proposed mortgage overpayments before relying on them. Pension access or business-sale planning needs the relevant specialist advice.

MoneyHelper’s repayment-plan guidance describes the need for a credible plan and regular review. Raise a possible shortfall early rather than waiting until the term ends.

Offset savings: an interest feature, not a repayment method.

An offset arrangement links eligible cash savings to a mortgage so the savings can reduce the balance on which interest is calculated. The underlying mortgage can have its own repayment basis; availability and account mechanics must be checked. Shares and funds are not the same as cash held in an eligible linked account.

Compare the full mortgage cost and fees with the interest forgone on savings and the cash you expect to keep available. Drawing on the cash reduces the benefit. If the savings also form part of a repayment plan, identify how much will genuinely remain for that purpose. MoneyHelper explains offset mortgages.

Explore offset preparation · Try the illustrative offset calculator

A fictional £2.4m part-and-part brief.

Proposed total loan

£2,400,000

Repayment portion

£1,000,000

Interest-only portion

£1,400,000

The brief must explain affordability for the whole mortgage and how the £1.4 million interest-only portion would be repaid. The buyer mentions a separate investment portfolio and another property, but neither is assumed to be accepted or sufficient. Ownership, debts, access, costs, values and timing need review. The price contribution excludes transaction costs and retained reserves.

If the scheduled repayment portion clears as agreed and no extra capital is paid against the interest-only portion, £1.4 million still needs to be repaid at the end of its term. A sale delay or fall in asset values could change the plan. No rate, payment, approval or outcome is claimed.

Explore another fictional £2.4m London purchase brief ↗

What to prepare for the first discussion.

1. The property, price or value, proposed loan and current borrowing.
2. Income sources, commitments and the cash contribution available.
3. Your preferred repayment approach and why you are considering it.
4. Any assets proposed for repayment, their ownership and debts or restrictions.
5. Important dates, other advisers involved and anything still uncertain.

There is no need to solve the structure before contacting Jack. The first step can identify the information required and whether more specialist input is needed. Fees and service scope are explained before proceeding.

Is the £2m+ loan for a different purpose?

These are different finance assessments. The residential illustration above does not describe their terms, eligibility or regulatory treatment.

Your questions, answered