£3 Million Mortgage: Monthly Repayments & Income Requirements

To get a large mortgage of £3 million you would typically need a deposit of at least 20%, with some lenders requiring a deposit of 30%. You’re also likely to need an income of at least £500,000 to be approved.

At the time of writing (July 2024) the approximate monthly repayments on a £3 million mortgage are £17,538. This is based on current interest rates being around 5%, a typical mortgage term of 25 years, and opting for a capital repayment mortgage. Based on this, you would repay £5,261,310 over the mortgage term.

If you’re in need of a mortgage worth this amount, you’ve come to the right place. In this guide, you’ll learn how to qualify for a £3 million mortgage, how much the repayments will be, and where to find a broker who specialises in large mortgages.

How much does a £3 million mortgage cost per month?

Your monthly repayments will depend on your interest rate, mortgage term, and the type of mortgage you choose, such as a repayment or interest-only mortgage.

If you secure a mortgage with a longer term, you’ll typically make smaller monthly repayments but will likely pay more over the mortgage term.

It’s a good idea to speak to one of the advisors we work with to better understand what your repayments might look like. They can assist you in obtaining more favourable terms and lower repayments than what you might secure on your own when trying to get a mortgage.

How much do you need to earn to get a £3 million mortgage?

Each mortgage provider will have its own criteria for assessing affordability, but most will base their calculation on your annual income, and multiply it by a fixed amount. The amount you can borrow is based on your salary.

This will typically be 4.5 x earnings, but can be 5 x earnings and may be as high as 6 x earnings, though this is less likely when the amount being borrowed is a larger sum.

If you qualify for a high net worth mortgage exemption, however, usual lending rules may not apply, and it could be possible to take out a mortgage based on more than six times your income.

Although some mainstream mortgage lenders can stretch to loans of this size under the right circumstances, this is typically the preserve of private mortgage lenders.

As the table below illustrates, a salary (or combined salary if you’re applying for a joint mortgage) of at least £500,000 per annum will normally be required for a £3 million pound mortgage at the highest possible multiple:

How much deposit do you need for a £3 million mortgage?

Most lenders apply stricter criteria when assessing larger mortgage applications, and this usually applies to the deposit, too.

Of those lenders that offer mortgages upwards of £1 million, the vast majority require a deposit of at least 20%, which would amount to £600,000 if you are looking to raise a mortgage of exactly £3 million.

However, in the right circumstances, a specialist high-net-worth lender may be able to offer mortgages of up to 95% loan-to-value (LTV), equivalent to a deposit of £150,000.

This is usually only possible in cases where other assets are included in the calculation but could be an option for those with a healthy property portfolio.

How to get a £3 million mortgage

Once you’ve found a property and completed the necessary calculations, your next step should be to find an experienced mortgage broker. This will increase your chances of approval and help you secure the best available terms.

Using our free broker-matching service you can speak to the right broker straightaway by simply enquiring online.

They’ll be able to help with:

• Deposit requirements: To secure a £3 million mortgage, you will need to save a minimum deposit of 20%. The exact amount required will depend on the property value. For example, for a £3,000,000 house, a 20% deposit would be £600,000.
• Reviewing and Optimising Your Credit Reports: It’s important to check your credit history before applying to ensure no bad credit issues exist and remove any inaccurate or outdated information that could hinder your chances of securing the mortgage you need.
• Gathering all the necessary paperwork required for your application: Your broker will be able to guide you through the application process and all the typical documents required – proof of income, at least three months of bank statements, personal ID, proof of address, evidence of deposit, latest P60 form etc.
• Determining Your Borrowing Capacity: Based on typical lender salary multiplier calculations, you might assume that £3 million is the maximum amount you can borrow for a mortgage. However, this may not be the case. A mortgage broker can assess your circumstances and eligibility for better deals from lenders, potentially allowing you to borrow more at better interest rates.
• Identify the Right Lender and Secure the Best Deal: Your mortgage broker can identify lenders offering the best interest rate terms. This can save you time and potentially some money.
• Guiding you through the Mortgage Process: Getting a mortgage can be difficult, especially if it’s your first application. The right mortgage broker can help you with any issues you may face along the way, look after your interests and be a lifeline in case anything goes wrong.

Example monthly repayments for a £3 million mortgage

The table below shows how monthly payments on a £3 million mortgage can change depending on the rate and term.

Interest-only mortgages

It’s sometimes possible to arrange a £3,000,000 mortgage on an interest-only basis under the right circumstances, but you will need to meet certain criteria and find a lender who is willing to offer high-net-worth mortgages on this basis.

The repayment amount for interest-only mortgages stays the same regardless of the loan term. For example, if the monthly repayment at a 6% interest rate is £15,000, it will remain the same whether you choose a 15-year or a 30-year term. This is due to the principal amount not decreasing and being paid off in full until the end using a separate repayment vehicle.

For the purpose of these tables, we assume the interest rate stays the same for the full length of the mortgage. Interest rates can change if you decide to remortgage on to a different rate or move from a fixed or discounted deal on to the lender’s standard variable rate (SVR).

With the Bank of England base rate currently at 5.25% (July 2024) and the average mortgage rates between 5% to 6% the repayment figures along these rows in the table above would be the most realistic at present. This can change as and when the base rate changes.

You are more likely to qualify for the best rates on the market if you have…

• A clean credit record
• A large deposit
• Proof of regular, ongoing salaried income
• A property in good condition and of standard construction type
• A mortgage broker on your side to negotiate the best deal for you

Other costs to factor in

The total amount you’ll pay over the course of a £3+ million mortgage will depend on factors such as the interest rate you’re offered, the lender’s fee structure, the value of your property, any overpayments you make and the term length.

Every lender is different, so it’s impossible to put an exact figure on the cost, but you’ll usually need to cover the following upfront costs first:

• Arrangement fee (if applicable)
• Valuation fee
• Solicitors’ fees
• Insurance
• Deposit
• Survey

Once these are settled, the ongoing costs in the form of monthly repayments will depend on the specific deal the provider offers you, as well as the type of mortgage product you choose (variable, fixed, repayment etc).

Eligibility criteria

In addition to your salary, lenders will look at factors such as:

• Your credit history
• Your age
• Income type
• Additional earnings
• Deposit size
• Your outgoings
• Property type

Each lender will have its own policy on the issues listed above. For example, some will only accept self-employed income if you have enough records to show proof of earnings and an ongoing income stream.

But as a general rule the more ‘non-standard’ aspects to your mortgage application (e.g. self-employed income, non-standard property types), the harder it will be to find a willing lender without the help of a broker.

Get matched with a broker who specialises in £3m mortgages

The best way to avoid falling afoul of lending caps and securing a mortgage worth £3 million or more is to apply through a broker who specialises in large mortgages.

There are brokers in our network who specialise in mortgages of this size, and they have the knowledge, expertise and lender contacts to help you get the best deal, whether that’s from a high street lender or a private mortgage provider whose products are only available through brokers.

Call us today on 0808 189 2301 or make an enquiry and we’ll set up a free, no-obligation chat between you and your ideal mortgage broker today.