Million Pound Mortgages

Most banks lend around 4.5 to 5 times your annual income. On that basis, a £1 million loan typically needs household income of about £200,000 to £222,000.

However, some lenders consider higher income multiples for qualifying borrowers. The Enness Lender Database identifies 27 of our 134 tracked residential lenders as publishing an income multiple of six times income or more.

At six times income, a £1 million mortgage requires approximately £166,667 in annual household income.

These figures are illustrative calculations, not lending promises. Actual borrowing depends on lender affordability assessments, financial commitments and individual criteria.

Lenders can also take different approaches to variable income.

For example, some assess bonuses using a two-year average. Others use a proportion of the latest bonus or focus primarily on guaranteed earnings.

Business owners may be assessed using salary, dividends or company profits. The treatment depends on the lender and how the business generates income.

Our advisers identify lenders whose income assessment reflects your financial position. This is particularly important when your earnings extend beyond a standard monthly salary.

Lenders typically ask for a deposit of 15% to 25% or more on £1m+ loans, but some can offer terms at just a 5% deposit depending on your broader circumstances and wealth.

The maximum LTV often falls as the loan size rises, due to the added risk for the lender of providing a high value loan.

Enness's lender research identifies 71 tracked residential lenders publishing a maximum LTV of 85% or more. Of those, 33 also publish a maximum loan of £2 million or more.

FCA rules allow lenders to take a different approach to affordability for eligible high-net-worth borrowers. The relevant thresholds are typically annual net income of at least £300,000 or net assets of at least £3 million.

This route recognises that some high-net-worth borrowers have financial arrangements that don't fit standard affordability calculations.

For example, a business owner might receive relatively modest personal income while holding significant business interests and other assets.

A wider assessment can help a lender understand the borrower's overall financial position.

However, meeting the thresholds doesn't automatically qualify you for a mortgage or guarantee approval. Lenders still assess the application and the borrower's ability to meet the proposed repayments.

The relevant FCA requirements and thresholds should be confirmed against the current MCOB rules before publication.

Lenders at this level usually look at your whole financial position, but each treats bonuses, dividends, investment and foreign-currency income differently. Some count all of it; others count only part.

A standard payslip rarely tells the complete story for a high-earning business owner, investor or international executive.

The way your income is structured can influence which lenders consider your application.

Common income sources include:

• Bonus and commission: Lenders assess whether variable earnings are consistent, sustainable and supported by historical records.

• Dividends: Some lenders consider dividend income alongside salary. Others examine company profits and the applicant's shareholding.

• Company income: Business owners may need to provide accounts, tax calculations and evidence of retained profits.

• Restricted stock units (RSUs) and vested shares: Lenders differ in how they assess share-based remuneration and its reliability.

• Investment income: Rental income, portfolio distributions and other investment returns can contribute to an affordability assessment.

• Foreign-currency income: Lenders consider exchange-rate risk and can reduce the income amount used in their calculations.

The important distinction is that lenders don't all assess these income sources in the same way.

Enness Global's lender research identifies 42 of the 134 tracked residential lenders as stating that they consider complex income.

Yes, some lenders accept non-UK residents and income in other currencies, though many reduce the amount they count to allow for exchange-rate risk.

International mortgage applications often involve additional considerations, including your country of residence, tax residency, employment arrangements and the currency in which you receive income.

For example, an executive living in Dubai and earning in US dollars may need a lender comfortable with overseas residency and foreign-currency earnings.

A German national purchasing a UK property faces a different set of considerations. The lender needs to understand their residency, income and financial arrangements.

Enness works with international buyers, expats and foreign nationals seeking substantial UK mortgages. Our advisers understand the additional documentation and underwriting considerations involved.

We work with clients from a range of international backgrounds. Our office network includes Mayfair, Dubai, France and Jersey.

Whether you're based overseas or receive income in another currency, we can compare lenders that consider your particular circumstances.

Yes, interest-only mortgages are available for £1m+ borrowing. Lenders typically require a lower LTV and a clear plan to repay the capital at the end of the term.

With an interest-only mortgage, your monthly payments cover the interest rather than reducing the outstanding loan.

The original capital remains outstanding throughout the mortgage term, and you must repay it when the mortgage ends.

This structure can suit borrowers with substantial assets, investment portfolios or income arrangements that support an alternative repayment strategy.

However, lenders need evidence of a credible repayment plan. This is often called an exit strategy.

Acceptable strategies depend on individual lender criteria. They can include:

• The planned sale of an investment property.

• The sale of other suitable assets.

• Investment portfolios or other qualifying investments.

• Other documented sources of capital repayment.

Some borrowers prefer a part-and-part mortgage. This combines interest-only borrowing with a repayment element, reducing the capital outstanding over the mortgage term.

Private banks can offer more tailored structures for certain clients, although their terms and lending conditions vary.

Our advisers compare available repayment structures and can explain how each affects your borrowing and outstanding balance, and fits into your wider lifestyle and cash flow requirements.