Constant growth in the UK housing market has created more £1m mortgages. Within the last twelve months the number of these higher than average mortgages has increased by almost 20%. In addition, the number of mortgages of more than £500,000 has grown to one in 14 overall borrowers. According to Natwest, the lender approved more than 230 mortgages of more than £1m last year and has approved more than 200 already this year.

Interest rates have been at a below average level for some time now which has facilitated the number of high value mortgages. With the rise in base rate expected in the next few months, the number of high value mortgages will likely start to decline or at least not grow as much as they have this year and last.

Andrew Montlake of Coreco mortgage brokers commented on the number of high value mortgages obtained, saying: “We are seeing a return of high street lenders into the £1m plus arena, eager to bolster their lending levels. Many lenders are comfortable again and returning to the £1m to £2m lending market.”

Montlake added: “We have seen some eye-watering payslips over the past few months, as well as large bonus payments or exceptional sets of accounts which have been used to prove income and affordability.

High value mortgages have been in a growth mode for the past two years. Not to be unmatched, the number of remortgages obtained during the past two months is at a feverish pace. House owners are taking advantage of the remortgage option before the Bank of England raises the base rate causing an increase in interest rates.