Acquiring Large Mortgage Loans: A Guide
Acquiring Large Mortgage Loans: A Guide
Prime real estate comes at a high cost. Most people require large mortgage loans to secure properties in the £500,000+ range. Unfortunately, these loans have the strictest eligibility requirements, making them more challenging to obtain than others. While not everyone can afford to qualify for such a large mortgage, Prestige offers a guide on how to meet and exceed the requirements for those in a position to take advantage.
This article is a guide to acquiring the large mortgage loans necessary to purchase the most desirable properties. Prestige Mortgage Solutions, Ltd., is the premier mortgage advisor in Glasgow, Scotland, and the UK. Our trained experts are here to help those seeking the perfect mortgage for their dream home, including the properties that fetch the highest prices.
If you want to finance a high-level mortgage, Prestige Mortgage Solutions will help you through every step, from starting your large mortgage application to the time you set foot on your property.
‘Your home may be repossessed if you do not keep up repayments on your mortgage’
Where to Start
Large mortgages of £500,000+ still require the same basic things as a regular mortgage. That means you will want to have key documentation in order, and you will need your credit to be in good shape, and so on. Here we will list some of the most important things you should know or have ready before you start applying for large mortgage loans.
Lenders will look at your credit history before qualifying you for any mortgage, but especially before any loan of such a large amount. Is your credit in good shape? Do you have any outstanding debts or errors you need to dispute? You will want to take care of any issues with your credit history before applying—nothing stymies a financing effort like finding out from the agent that your credit is lacking.
The largest mortgage loans, those of £500,000+ value or more, require sufficient income to meet eligibility requirements. Lenders will typically offer you a multiple of your income for large mortgages, but such a large loan demands a proportionately greater income requirement. Credit history, mentioned above, also factors into play here. The mortgage company will be more willing to lend more money to buyers with good credit, so having a sufficient income is paramount. The lender will feel more comfortable knowing they have the savings to afford the payments, even if unforeseen circumstances impact your finances.
You will want to check with your lender to learn more about what income multiple they will allow for their offer. The larger the multiple, the less you need to make with a single income to qualify.
Please also consider that lenders will look at all your current financial commitments. In addition to a well-tended credit history, it is a good idea to pay off existing debts, even small credit card bills, to remove their impact on your eligibility. Eliminating unnecessary costs is a good standard practice when undertaking such a significant financial burden. Streamline your finances, lowering expenses, and give yourself enough cushion to account for unexpected circumstances.
You can’t avoid the reality that you will need money upfront to secure your desired property. You must make a deposit even if you have received a high-value loan offer. Some large mortgages offer up to a 95% loan-to-value (LTV) ratio, meaning that your deposit amount is 5%, but this is not true for everyone and does come with additional considerations. These kinds of loans are more expensive to obtain, for example, meaning that you will ultimately pay more. Conversely, the lower the LTV, the more you pay in deposit money, but the loan is overall cheaper.
Finding the Right Lender
The mortgage source you choose is a crucial element of the process. Banks are likely to be more stringent in their requirements. Independent lenders are more apt to have favourable offers. Prestige Mortgage Solutions has access to over 90 lenders, meaning that we can always find you the best large mortgage loans. We are the premier mortgage advisor in Glasgow (but serving all of the UK!) for a reason!
Comparing offers is essential. Not every lender will extend the same loan offer, so you may find one that best suits your needs and your means. Our experts are trained and experienced in finding people like you the best offers.
What Happens Next?
Congratulations! You have contacted the leading mortgage advisor in Scotland and applied for a large mortgage loan. Now that they’ve accepted your request. You’ve bought your home and made your plans to move (and no doubt had a few friends suddenly come up “busy” when it comes time to help!). Now you have to consider the recurring costs of such an expensive venture.
What are your interest rates? Generally, a longer mortgage has lower recurring costs, but you will pay more over time because the interest rates add up to a higher total cost. Many lenders also offer reduced interest rates for a certain period, but the rates will increase after this period. Lenders will factor this into the affordability assessments they make to determine your eligibility, so this is a critical factor of which to be aware.
Let’s Get Started
This guide can help you get started, but the full scope of a large mortgage such as this extends beyond what you can read here. We recommend you book an appointment with one of our agents to begin the process. Our expert agents will be happy to answer any questions you might have and help you complete your application. We’ll follow up with you quickly and guide you to the next step of the process.
Large mortgage loans can be a risky and intimidating but ultimately thrilling experience, and we can help you maximise your time, money, and interest. We’re happy to serve your needs to ensure you find both the loan and the home to realise your dreams.