The average mortgage loan in the UK is around £167,000 and assuming you have a good credit score and an income, you’ll usually find a deal on the high street that suits you. There are best buy tables in the weekend press and comparison websites for you to see what’s available.
If you need something out of the ordinary it’s not so straightforward. Most lenders cater for the mass market so if you need a mortgage of over £500,000 you’re not their typical customer.
You won’t be surprised to learn that high value loans are more common in the South East and in particular London. Across England and Wales, the average house price is £183,861. In London the average is £488,782*
Most of my clients work in the City. They often work in finance so have the added complexity of an income partly made up of annual bonus. Bonus income is not always considered by lenders but for my clients, ignoring that income has a big impact on the amount they can borrow. Bonuses in the City are often higher than a client’s basic salary.
Interest only is also a very common request amongst our client bank.
If you read the press you would think it was impossible to get an interest only mortgage these days but this is not the case.
For the right client profile they can be readily available from high street banks and often with the same rates as you would have been offered had it been a repayment mortgage.
Clearly this is a niche market and in the same way that it is important to pick the right lender it is also important to pick the right broker to help you arrange your finances. At LIFT we specialise in high value loans and understanding the complex needs of our clients. We are working with higher and additional rates tax payers’ day in day out and we are known in the market as a broker that places a lot of high value business across the market.
Why review your existing mortgage?
The Bank of England (BoE) Monetary Committee voted last week by 8 to 1 to keep the base rate at 0.5%. Their recent Inflation Report said the outlook for inflation was ‘muted’ and several lenders cut their rates following this report.
Mark Carney (the Governor of the BoE) has said that rates may well increase towards the end of the year so I’m advising clients to review their arrangements now and look to tie in a rate for the next few years.
The table below shows some typical rates available through LIFT-Mortgages. We are a whole of market broker and can often access deals that aren’t available elsewhere.
|Loan to Value||2 years fixed||3 years fixed||5 years fixed|
|60 (and below)||1.39%||1.89%||2.29%|
*Source: Land Registry House Price Index July 2015
If you need a mortgage over £500k, please get in touch. david.baker@LIFT-Financial.com 0161 929 2626