How lenders assess larger amounts
Expect a fuller look at income and its sustainability, particularly for variable earnings, bonuses or self-employment. Lenders will want a clear purpose and, for some uses, evidence such as quotations or a completion statement.
A physical valuation is more likely than an automated one, and the lender may apply a lower maximum LTV for larger amounts. Our guide to what lenders check covers the evidence in detail.
Term and total cost
On £100,000, a difference of one percentage point in the rate or five years in the term changes the total interest by tens of thousands of pounds. Use the calculator to compare terms, and read the total amount repayable rather than the monthly payment alone.
A shorter term with a higher payment may be affordable and far cheaper overall. Ask for both illustrations.
Fees on larger loans
Where a broker or lender charges a percentage fee, a larger loan produces a larger fee for the same work. Ask for the amount in pounds, whether it is capped and whether adding it to the loan is the only option.
Remortgage or secured loan?
At this scale a remortgage often deserves a serious comparison. If your current mortgage rate is low or carries an early repayment charge, a second charge may still win; if not, a single larger mortgage can be cheaper. Ask the broker to show both routes with total costs.
Before you commit
- Compare a shorter and a longer term on total amount repayable.
- Ask for fees in pounds and whether they are capped.
- Have the remortgage alternative costed alongside the secured loan.
- Allow time for a physical valuation and fuller income checks.