High Value Mortgages for Ultra-High-Net-Worth Individuals

Ultra-High-Value Mortgages: Interest Rates, Deposits & Fees

A high-value mortgage, whether for example, £15 million, £20 million or even £50 million (and all in between!) is a substantial financial commitment that demands expert advice, bespoke terms, and a clear understanding of the associated costs.

At Kerr & Watson, we specialise in sourcing tailored mortgages for individuals and investors.

When purchasing a prime residence for your family to occupy or financing an investment property, here’s what you need to know.

Key Factors That Influence High-Value Mortgage Costs

Interest Rates

Interest rates are one of the most significant factors affecting your monthly repayments. The rate you’re offered depends on:

• The lender and product type (e.g. fixed vs variable)
• Your personal financial profile
• Loan size and deposit available

For ultra-high-value loans, private banks may offer preferential or individually negotiated rates. These are not always advertised publicly, which is why working with an experienced mortgage adviser is recommended.

Loan-to-Value (LTV) Ratio

LTV refers to how much you’re borrowing compared to the property’s value. The more you can contribute upfront, the better the terms that you will generally be offered.

Typical high-value mortgage LTV ranges:

• Up to 80% for some circa £15m mortgages and below (potentially subject to stricter requirements for higher loan to value mortgages)
• 60% to 70% LTV is often more favourable for circa £20m mortgages
• 50% to 60% LTV is usually the maximum on a £50m or more loan, due to lender exposure limits

This information is in general though so can move over time and lenders may go outside of these amounts, depending on the deal. As a result, individual advice should be sought.

Higher deposits help reduce monthly payments and increase approval chances with some lenders.

Mortgage Term Length

Lenders usually offer mortgage terms between 15 to 30 years, often requiring full repayment by age 75 (they may be able to go beyond this for some borrowers, for example, if you have strong retirement income or own other significant assets.).

A longer term reduces monthly payments but increases the total interest paid. Professional advice can help you balance cash flow against long-term cost.

Estimated Monthly Repayments For Various Examples

Here’s how repayments vary by loan size, term, and interest rate, based on a capital and interest mortgages using the examples of £15 million, £20 million and £50 million.

£15 Million Mortgage

• 25 Years at 4%: ~£79,170/month | Total Repayment: £23.75m
• 25 Years at 5%: ~£87,690/month | Total Repayment: £26.31m
• 30 Years at 4%: ~£71,610/month | Total Repayment: £25.79m

£20 Million Mortgage

• 25 Years at 4%: ~£105,560/month | Total Repayment: £31.67m
• 25 Years at 5%: ~£116,920/month | Total Repayment: £35.08m
• 30 Years at 4%: ~£95,480/month | Total Repayment: £34.38m

£50 Million Mortgage

• 25 Years at 4%: ~£263,900/month | Total Repayment: £79.17m
• 25 Years at 5%: ~£292,300/month | Total Repayment: £87.69m
• 30 Years at 4%: ~£238,700/month | Total Repayment: £85.93m

These figures are estimates for standard repayment loans. Opting for interest-only terms can significantly reduce monthly costs for example:

A £50m interest-only mortgage at 4% would cost around £166,667/month.

Every case is different and when working with large loan amounts, terms are often bespoke. As a result, speak to our team for a personalised quote, as we would need to carry out research and speak with lenders on your behalf.

Deposit Requirements by Loan Size

Deposit requirements can vary widely by lender and risk profile. Below are typical examples for a £15 Million Mortgage:

• 10% deposit (£1.5m): Higher borrowing & stricter criteria, strong lender appetite needed.
• 20% deposit (£3m): More competitive rates and more options generally available.
• 40% deposit (£6m): Access to top-tier deals

These figures are starting points, however we can help you understand what deposit levels apply in your unique circumstances.

Additional Fees to Consider

High-value mortgages often come with larger associated fees. Being prepared for these upfront costs is crucial.

Arrangement Fees

These may be:

A flat fee (e.g. £10,000 to £20,000)

Or a percentage of the loan (for example, 1%)

Using the 1% example, that’s:

• £150,000 on a £15m loan
• £200,000 on a £20m loan
• £500,000 on a £50m loan

Each lender and product carry a different fee so your mortgage adviser can confirm this for you.

Valuation and Legal Fees

Valuations: Expected from £2,000 to over £10,000 for large estates. With your budget, the property that you are buying will be very luxurious and a thorough inspection should be carried out so this is reflected in the fee for a survey.

Legal fees: Typically between £5,000 and £15,000 depending on complexity.

For survey and legal fees, we can help you find out these costs. Your lender will need to arrange a survey which will likely be at your expense as the borrowers. The lender will advise this cost.

We can help you source a solicitor to give you an estimate of your legal costs.

Income & Eligibility Requirements

Lenders will closely assess your income, assets, and outgoings to evaluate affordability. This includes:

Lifestyle expenses (travel, staff, school fees, maintenance, holidays etc)

Existing debts (loans, credit cards, car finance)

Indicative Income Expectations:

Although it varies according to the lender, deposit, and income make up, a common multiple is 5 times income. For the mentioned examples, this may mean incomes as per the following:

• £3 million/year for a £15m loan
• £4 million/year for a £20m loan
• £10 million/year for a £50m loan

Those with complex income, such as entrepreneurs, investors, and company directors may need to provide:

• Company accounts and tax returns
• Bonus/commission records, P60’s, payslips, bank statements for PAYE income
• Investment or dividend statements, share and fund portfolios.
• Proof of overseas or trust income

A mortgage adviser experienced in complex financial structures is recommended to present your case effectively to lenders.

Why Work with Kerr & Watson?

High-value mortgages are not just bigger versions of standard mortgages, they require bespoke underwriting, direct access to both high street and private banks, and a strategic approach in arranging the mortgage.

At Kerr & Watson, we:

• Have relationships with private and specialist lenders
• Understand complex income profiles
• Provide clear, tailored advice

Conclusion

Whether you’re borrowing at our examples of £15 million, £20 million, or £50 million, securing the right mortgage can be a complex process, but with the right guidance, it doesn’t have to be impossible if you are meeting lender criteria, although options are of course thinner at this level.

Kerr & Watson offers discreet, professional advice to high-net-worth individuals across the UK and internationally.

If you’re considering a high-value mortgage, we’d love to hear from you. Book a confidential consultation with our team to explore your borrowing potential.