Bespoke rates available
With the UK housing market taking a steep uphill hike in recent years, mortgages on these properties, naturally follow the same curve. According to lenders, high earners are opting to utilise the low interest-rates and save their cash to splash on other things.
Even the rich are maximising the low interest-rates
Affordability checks are still required for all mortgage applications, even where the applicant has high income levels. However, with rising property prices and low interest rates, the £1million+ mortgages have become more affordable.
Natwest alone issued 233 £1 million+ mortgages in 2014 and 207 by the end of Quarter 3 in 2015.
According to Halifax, the average income of a £1million mortgage holder is just under £390,000 per year and often the banks are able to negotiate low-cost interest-only deals on bespoke rates.
These property owners choose to borrow against their property so their cash is free to spend on their other investments, ventures and luxury items such as yachts and cars.
1 in 14 with mortgages over £500,000
London is accountable for 8 out of 10 £1million+ mortgages with 13% in the home counties and a few in other areas in the UK, according to Nationwide.
Supersize, elite mortgage borrowers could also choose to borrow from private banks however, others within the £1 – £3 million bracket, are opting for the high-street lender.
The Guardian reports there are also 1 in 14 borrowers with mortgages over £500,000.
Dental & Medical Financial Services can help with your mortgage and planning the best way to apportion your wealth.
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