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Large Mortgage Loans Going Mainstream At Halifax

Written by Sam Jones on 17 May 2013.

Halifax has cut rates on a range of two year products on their range of loans above £1m.

It now offers two-year fixes for house purchase at 4.49% with a £999 fee up to 80% loan to value; For two-year trackers for purchase at 80% loan to value, the bank has cut prices back to 4.19% with a £999 fee.

For remortgages the rate is slightly higher at 4.54% also with a £999 and available up to 80% loan to value.

The rate cuts show a trend towards 1 million mortgages becoming a more mainstream product as they have become quite specialised and niche.

For such a large amount it is essential that you speak to a qualified broker to get the right deal. Getting the wrong interest payments on a £1m loan can be very costly indeed. Halifax's deals are only available through brokers recognising the complex nature of the deal and the need to get it right for customers lending so much.

Lender maze

While Halifax' move shows large loans are becoming more mainstream there is a whole specialist market of private banking that is available for large loans. Most private banks are interested in you as a customer so want not just your mortgage business but also your investment portfolio and savings.

Transferring significant amounts into private banks investment arm could result in a significant reduction on mortgages. They operate only with a select number of clients and do not work in the same way as high street banks that churn thousands of customers daily.

Deals can be done and it is a broker who is best placed to cut them for you. Private banks are notoriously shy of attracting customers because they do not want any old customers, they want customers with lots of money.

For that reason they do not market themselves and it is virtually impossible for an individuals to know what is going on . A large loan broker will have connections with major banks and know their appetite for lending and whether you are suitable.

Sometimes it is a matter of timing that a bank is looking for a certain customer and only a specialised broker will have access to this type of information.

A broker will scour global banks from Singapore to Canada to find you the perfect suitor and it could prove to save you lots of money.

Mainstream

Alternatively a broker can search the mainstream banks, such as Halifax, to find you a loan more than £1m although many will have limits of £2m loans. Only private banks will be able to lend you money into the millions and the interest rate may rise as more cash is put on the line.

After the financial crisis many banks pulled out of large loans as it was seen as a higher risk and area in the middle of such turmoil. But now many are moving back into the space with Santander also showing an appetite to lend with its private banking arm Cater Allen.

Large mortgage loans are more available in the mainstream as lenders look to ere-enter sectors they left.

But there are also private banking deals to be had from firms you will not know about unless you speak to a broker. With such large amounts a stake it could be the best call you ever make.

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