Securing a large mortgage loan exceeding £5 million requires a bespoke approach, as standard lenders often have restrictive limits or rigid criteria. Mortgage Knight specialises in arranging high-value mortgages through strong relationships with private banks and specialist lenders.
Whether you’re purchasing a luxury residence, an investment property, or refinancing, our team provides tailored solutions that align with your financial goals.
In this guide, we explain how large mortgage loans work, highlight case studies, and demonstrate how our close relationships with private banks ensure a seamless experience.
Understanding Contractor Mortgage Challenges
Contractors often face different challenges when applying for mortgages compared to traditionally employed borrowers:
Income Documentation Differences: Contractors typically don’t have standard payslips or employment contracts. Instead, you have day rate contracts, invoices, and business income records that require different presentation approaches.
Lender Understanding Varies: Some lenders have extensive experience with contractor applications, whilst others focus primarily on employed borrowers. Finding the right lender match is crucial for a smooth application process.
Assessment Method Differences: Lenders may assess contractor income differently – some focus on day rates and contract terms, others prefer historical business accounts. Understanding these differences helps in choosing the right approach.
What Are Large Mortgage Loans?
Large mortgage loans, often referred to as jumbo loans, are designed for individuals purchasing or refinancing properties valued at £5 million or more. These loans typically require bespoke underwriting, with terms tailored to the borrower’s financial profile, income structure, and asset portfolio.
Key Features of Large Mortgage Loans:
- Loan Amounts: Typically exceeding £5 million.
- Flexible Criteria: Assessments include income, assets, and global wealth rather than standard affordability calculations.
- Personalised Solutions: Loans structured to fit high-net-worth individuals’ unique financial circumstances.
- Private Banking Options: Often arranged through private banks, offering exclusive services and benefits.
Why Choose Mortgage Knight for Large Mortgage Loans?
At Mortgage Knight, we understand the complexities of arranging large loans and have built strong relationships with private banks and specialist lenders. These connections allow us to offer exclusive terms, quicker approvals, and bespoke solutions tailored to high-value borrowers.
Our Relationships with Private Banks
Our close ties with renowned private banks, including Coutts, Investec, and Handelsbanken, provide access to exclusive mortgage products unavailable through traditional lenders.
Private banks take a holistic view of your financial situation, considering assets, investments, and global wealth to create a customised mortgage solution.
Specialist Expertise in High-Value Mortgages
Large mortgages often require an understanding of complex income structures, including:
- Bonus or commission-based income.
- International earnings.
- Portfolio income from investments or property rentals.
Our team specialises in navigating these complexities to secure the best terms for our clients.
Discretion and Personalised Service
High-value property transactions require privacy and efficiency. Mortgage Knight ensures a discreet and seamless process, working closely with your legal and financial advisors to manage every aspect of the loan application.
Case Studies: Large Mortgage Loan Successes
Case Study 1: £7 Million Loan for a London Penthouse
Client Profile: A high-net-worth individual (HNWI) residing in the UAE sought to purchase a £10 million penthouse in central London. The client had a significant global investment portfolio but inconsistent annual income due to investment distributions.
Challenges:
- Standard lenders struggled to assess affordability due to irregular income streams.
- The client needed a high loan-to-value (LTV) of 70% to preserve liquidity.
Solution:
Mortgage Knight secured a £7 million loan through Coutts, leveraging the client’s investment portfolio as collateral.
The private bank offered flexible repayment terms and a competitive interest rate, tailored to the client’s unique income structure.
Outcome:
The client successfully purchased the penthouse while maintaining liquidity for future investments.
Case Study 2: £5.5 Million Loan for a Country Estate
Client Profile: A UK-based entrepreneur wanted to refinance a country estate valued at £8 million to release equity for business expansion.
Challenges:
- The client’s income was largely tied to business profits, with limited salary drawings.
- Traditional lenders hesitated due to the complexity of the client’s income structure.
Solution:
Mortgage Knight partnered with Investec to arrange a £5.5 million loan with flexible terms, considering the client’s overall asset portfolio and business valuation.
The loan featured interest-only repayments for the first five years, aligned with the client’s cash flow needs.
Outcome:
The client secured the funds for their business expansion without selling other assets or incurring unnecessary costs.
Case Study 3: £10 Million Loan for an International Property Portfolio
Client Profile: An international investor with properties across Europe sought a £10 million mortgage for a prime central London property as part of their growing portfolio.
Challenges:
- Multiple currencies and jurisdictions complicated income and asset verification.
- The client required cross-border financing aligned with Sharia principles.
Solution:
Mortgage Knight collaborated with a private bank specialising in cross-border lending and Sharia-compliant products.
The lender offered a customised Murabaha mortgage, ensuring compliance with Islamic finance principles while securing competitive terms.
Outcome:
The client added the London property to their portfolio, enhancing its rental income potential and meeting all compliance requirements.
Benefits of Large Mortgage Loans with Private Banks
Private banks offer unique advantages for borrowers seeking large mortgage loans:
Tailored Underwriting:
- Holistic assessments consider income, assets, and global wealth.
- Loans structured to align with your investment goals and cash flow needs.
Exclusive Rates and Terms:
- Access to competitive interest rates and bespoke repayment options.
- Flexible LTV ratios, often exceeding 70% for eligible borrowers.
Comprehensive Wealth Management:
- Integrated services, including financial planning, investment advice, and estate planning.
- Solutions tailored to complement your broader financial strategy.
Discretion and Personalised Service:
- Private banks prioritise privacy and efficiency in high-value transactions.
- Dedicated relationship managers ensure seamless communication and support.
Key Takeaways for Large Mortgage Loan Borrowers
- Work with an Experienced Broker:
Mortgage Knight’s relationships with private banks ensure access to exclusive terms and bespoke solutions.
- Prepare Comprehensive Financial Documentation:
Organise income records, asset valuations, and investment details to streamline the application process.
- Consider Private Banking Options:
Private banks offer tailored solutions, especially for borrowers with complex income structures.
- Evaluate Repayment Structures:
Choose from options such as interest-only, offset, or capital repayment plans to align with your financial strategy.
Frequently Asked Questions
Q 1: What is the typical LTV ratio for large mortgage loans?
Ans: Most private banks offer LTV ratios of 60-75%, though higher ratios may be available for borrowers with significant assets or collateral.
Q 2: Do I need to have UK-based income to qualify for a large mortgage?
Ans: No, private banks often accept international income, including earnings from investments, businesses, or properties abroad.
Q 3: Are large mortgage loans available for buy-to-let properties?
Ans: Yes, many lenders offer high-value loans for buy-to-let investments, often through SPV structures for added efficiency and tax benefits.
Q 4: Can I secure a large mortgage loan if my income is irregular?
Ans: Yes, private banks take a holistic view of your financial profile, considering assets and investments alongside income.
Professional Contractor Mortgage Guidance
If you’re a contractor looking for professional mortgage guidance, we’re here to help. Our specialist knowledge and lender relationships enable us to provide expert advice tailored to your situation.
Schedule your consultation today. We’ll discuss your circumstances, explain your options, and provide honest advice about the best approach for your contractor mortgage application.
