The team at Large Mortgage Loans are experts in securing large mortgages for our clients.
We have close relationships with more than 200 finance providers including well known High Street names, specialist private banks, challenger banks, small building societies, boutique and peer-to-peer lenders. Our global reach ensures that our expert team of brokers can secure competitive rates for all kinds of investors seeking to secure a mortgage of £500,000 or more.
Do you qualify for a mortgage of this size?
Below, we’ve put together a short guide on the basic requirements you’ll need to consider when applying for a £500,000 mortgage. If you need specialist advice, please don’t hesitate to get in contact with our team.
Do you have a sizeable mortgage deposit?
You are much more likely to be accepted for £500,000 home loan if you can provide at least 10% of the purchase price upfront. As a general rule, the higher the deposit, the more attractive your mortgage terms will be. As you will not need to borrow as much, there is less risk to the lender.
Can you keep up your monthly mortgage repayments?
Once the lender has established the Loan to Value (LTV) ratio – which will be based on your initial deposit – they will need you to prove to them that you can comfortably meet the monthly mortgage repayments on your £500,000 loan.
They will also need you to prove that you will be able to pay the other monthly outgoings that are bound to be associated with the property. Have a think about the prospective costs of utility bills, council taxes, service charges and other similar fees, and ensure you will be able to cover these alongside your other commitments.
The majority of lenders will ask you to provide them with recent bank statements so they can analyse your living costs and review your financial position.
To work out how much you can expect to pay on a monthly basis, consider the following:
• The type of mortgage you have applied for, specifically, whether you’ve chosen a repayment or interest-only mortgage
• The interest rate that’s being applied to your repayments by the bank or building society
• The length of your mortgage term – this tends to be around 30 years, but can also be 25 years. A shorter term will increase your monthly repayments but may save you money in the long term, as you will be paying interest for a shorter period of time overall
• If you are considering an interest-only mortgage, the lender will require proof of a credible repayment strategy
How much are the monthly repayments on a £500,000 mortgage?
For a rough idea of the expected monthly repayments on a £500,000 mortgage, use our online mortgage calculator. Bear in mind that this tool will only give you ballpark figures – it will not take the lender’s own terms into consideration. For a more detailed point of view, contact our expert team of advisers, who can offer you bespoke feedback on your options.
Is your income consistent?
Those who are in regular employment and receive a consistent wage will typically find it easier to secure a £500,000 mortgage. If you are self-employed, or you have a more complicated income structure, your chosen lender may wish to see proof of earnings from the last two or three years to establish your eligibility for the loan. Therefore, it’s a good idea to get all your paperwork in order if you’re looking to start the process soon.
Have you considered arranging a joint mortgage?
If you are a single applicant, lenders will still consider your application fairly. However, if you’re thinking of securing a mortgage on a £500,000 house, it could make better financial sense to share the financial load with another individual, such as your partner or a close family member.
This will mean both of your incomes can be used to determine how much you can borrow – so you may have a better chance of securing your £500,000 mortgage and enjoying competitive interest rates thereafter.
Is your property mortgageable?
Mainstream mortgage providers will not lend on certain types of homes and you may struggle to secure lending on a converted property, a house/cottage with a thatched roof, or a Grade I listed building. You may also run into difficulty in securing your £500,000 mortgage if your dream home is close to a flood plain, as there is a more substantial risk of damage.
However, finding a suitable £500,000 mortgage on an unusual property is not impossible. Large Mortgage Loans specialise in finding lending solutions where others may struggle, and we have access to a number of specialised lenders who will consider all property types.
What to do if you need help in securing your £500,000 mortgage
Our expert adviser team understands that a £500,000 plus mortgage is a big financial commitment, and one that must be considered at great length before any contracts are signed. They will start by understanding your overall financial and lifestyle goals, whether business or personal. They will then use their expertise and experience of the market to create a bespoke solution, tailored to your individual situation.
We work with lenders who are flexible in their underwriting criteria and therefore treat clients on a case by case basis, which means we can often find solutions where others fail. Contact us today to find out more.
