Is it possible to get a large mortgage?
Yes. It is possible to get a large mortgage but you need to understand which lender you should apply to in order to stand a good chance of obtaining the desired level of mortgage. Lenders are usually reluctant to offer a large mortgage as it exposes them to a higher level of risk. Mortgages of small amounts granted to multiple borrowers can help the lenders to achieve a better risk spread. You will often find that your application is rejected by lenders due to factors such as affordability, income or LTV requirements. However, every lender operates a different policy when it comes to lending. It is possible that your application will be accepted by one lender even if has been rejected by other lenders. There are various specialist lenders who will offer mortgage in excess of £7 million to the right type of borrower.
Is it possible to get a large mortgage with high loan to value?
Yes, it may be possible for you to obtain a large loan with a high LTV. Various lenders operate different policies when it comes to the maximum LTV offered. However, lenders will also factor in the risk associated with an application in order to determine the LTV. For example, one lender may limit a maximum loan amount to £700k at 90% LTV while another lender may offer £800k at the same LTV. It is possible to get large mortgage above £2 million at a high LTV in the right circumstances.
How is my affordability determined for a large mortgage?
Affordability can play a critical role when arranging a large mortgage. Affordability is usually calculated based on annual income in terms of salary, profits or salary + dividends and based on the source of that income. Usually, the maximum loan amount is limited to 4 to 5 times total annual income. However, there are lenders who will consider discretionary income for certain wealthy clients and offer mortgages of over 6 to 7 times their annual income.
Can I get a large mortgage as a director of a limited company?
Yes, it is possible to arrange a large mortgage as a director of limited company. However, this may be difficult since in such cases many lenders consider income based on salary and dividends which can limit your maximum loan amount. Directors usually allow a significant amount of profit to be reinvested into the business rather than drawing this as personal income. However, there are many specialist lenders who will consider a share of profits while calculating annual income and offer a large mortgage accordingly.
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