Those high street lenders can stop away from offering such a large mortgage loans in the wake of the financial crisis. Currently, property prices just coaxed these lenders back into a large loan market and buyers looking for mortgages of £1m plus are finding themselves with lots of choices than ever.This isn’t to say that applying for huge mortgage loans is a cinch factor. Depending on the circumstances there may be some factors of which one need to be aware. There are some famous tips for applying for large mortgages.
- Let’s be prepared to prove our income.Those whose income streams are simple there isn’t much of an issue, but applicants with specialising in large mortgages may often derive their income from multiple sources. Some with various income streams (e.g Applying for contractor mortgages) may find that the best suitable rates aren’t available to them and even that some lenders will reject their applications out of the option.
- If the income stream is less than straightforward –for example, it is largely made up of bonus payments to make sure we are prepared for a longer than usual process to get the application underway.
- Affordability is another key criteria for lenders of huge mortgages. High outgoings and loan to value ratios can directly send up red flags for some lenders ,which automatically stop the mortgage application in its tracks.
- Some lenders are highly flexible such as Nationwide, Santander has specialist writing team of specialising in large mortgages who are ready to do more to understand the critical situations of wealthy clients.Nevertheless, by carefully documenting the outgoings is a smart move regardless of whatever lender you’re approaching.
- We need to be aware of arrangement fees.Some lenders charge higher fees than the usual standard for arranging large loans – particularly the newer underwriting teams at high street who is only just returning to the large mortgage market. Their fees can run into tens of thousands of pounds for arranging mortgages.
- Those just looking to take out large mortgages like private banks (e.g. Barclays Wealth, RBS Private) is almost the only option in the wake of the credit crunch. These kind of private lenders are still operational and can still offer the best rates for direct loans of £1m+ or as little as 2.1 percent for the right clients .But they often require the transfer of assets under management to secure those rates. This can be as much as 50 percent of the loan value.
- Whether someone uncertain of which lenders to consider,it’s how to present the income and outgoings, whether or not one is eligible for the best rates, all specialising in large mortgages lenders can greatly ease the process of directly applying for a large mortgage.
Conclusion:A mortgage broker who specializes in a lot of loans will often have pre-existing relationships with both high streets as well as private banks. That means that not only they know exactly how those lender’s applications to be presented to them ,but also, they can negotiate on behalf of their clients to access deals which would otherwise be unavailable.