Large mortgages, sometimes referred to as high value or jumbo mortgages, sit in a different part of the market from standard residential lending. Assessment is more individual, lenders are more selective, and the right introduction makes a genuine difference to what’s achievable. We work with specialist and private banking lenders who are comfortable operating at this level.
There’s no single definition of a large or high value mortgage in the UK, but most industry practitioners consider loans above £750,000 to be in this category, with private banking solutions becoming increasingly relevant above £1 million or £2 million. The FCA’s mortgage rules apply equally at all loan sizes, but how lenders interpret affordability varies considerably at the higher end of the market. Standard affordability calculators often undervalue complex income structures, which means the right lender choice becomes critical. According to UK Finance lending data, high value lending has grown consistently as property prices across London and the South East have pushed more standard purchases into this bracket.
Professionals in financial services, law and sales often have base salaries significantly below their total earnings. Standard lenders may use base salary only for affordability, which undervalues total income considerably. Specialist lenders can factor in bonus history, averaged over a period, to reach a more accurate income figure.
Entrepreneurs and directors drawing income from a mix of salary, dividends and retained profit often find that standard lenders struggle to assess their actual financial position. Private banks and specialist lenders understand business income structures and can underwrite accordingly. This links closely to our guidance on the self employed mortgages page.
Buyers with income in a foreign currency or working overseas face additional complexity around exchange rate risk and income verification. A number of specialist lenders and private banks operate in this space and are comfortable with overseas income, provided documentation requirements are met.
Some buyers have significant wealth held in assets such as investments, pensions or property equity, but a comparatively modest declared income. Certain private banks operate on a lending model that considers the full balance sheet rather than income alone, sometimes referred to as asset backed lending.
A solicitor at a City law firm earns a base salary of £120,000 plus an average annual bonus of £80,000 over the last three years. A standard lender using a 4.5x income multiple on base salary alone would offer a maximum of £540,000. A specialist lender averaging the last three years’ total earnings, including confirmed bonuses, extends that to £900,000 on the same income stream.
A founder and director draws a salary of £50,000 from their profitable business, which generates £350,000 annual net profit. Under salary plus dividends assessment from a mainstream lender, the maximum loan is limited. A specialist lender assessing salary plus net profit reaches a borrowable figure in line with the actual financial position, enabling the purchase to proceed.
A UK national working in Dubai earns the equivalent of £180,000 in UAE dirhams. Several UK high street lenders decline due to overseas income. A specialist UK lender with an international lending division considers the application with appropriate currency risk documentation and appropriate evidence of income continuity, and proceeds with a mortgage on a London property.
There’s no official definition, but most specialists consider loans above £750,000 to be in this category. Private banking solutions typically become relevant above £1 million.
Yes, many specialist lenders will consider averaged bonus income over two to three years. The key is providing evidence of the bonus history, such as payslips and P60s covering the relevant years.
Not always. Some private banks are open to new clients introduced by brokers, particularly where the financial profile is strong. We have introductions to several who operate on this basis.
Yes, though the criteria vary. Specialist lenders and certain private banks are comfortable with overseas income and foreign national buyers, subject to documentation requirements.
At this level, we’d suggest speaking to an adviser before you find a property if possible. Understanding what’s achievable, and with which lender, before you make an offer saves time and reduces uncertainty during the purchase process.
