Lenders Are Competing Harder for Bigger Mortgages - What It Means If You Need to Borrow More

If you need to borrow a larger sum for your next home, the market has quietly become friendlier to you. Over the past week, several major lenders have rolled out new products and policy changes specifically aimed at bigger mortgages, from raised maximum loan sizes to dedicated underwriting teams for high-value applications. For borrowers with substantial incomes, multiple income streams, or self-employed earnings that push their borrowing needs above the "standard" range, this shift is worth understanding.

A New Wave of Larger-Loan Products

Several lenders have introduced or expanded services this week aimed squarely at borrowers seeking loans of £1 million or more. One high-street name has launched a dedicated larger loans service for residential applications from £1 million upwards, assigning a specialist underwriter to guide the case from decision-in-principle right through to completion. The proposition supports lending of up to £5 million at 75% loan-to-value, £2.6 million at 85% LTV, and £1 million at 90% LTV, spanning purchases, remortgages, and new-build cases alike.

This kind of dedicated handling matters more than it might first appear. Larger mortgages often come with more complex underwriting requirements, particularly where income is drawn from several sources, bonuses, dividends, or self-employment. A named specialist who understands the case from start to finish can make the difference between a smooth completion and weeks of back-and-forth over paperwork.

Santander Raises Its Maximum Loan Sizes

Santander has also made significant changes this week, cutting new business mortgage rates by as much as 0.21 percentage points while simultaneously raising its maximum loan sizes to £2 million across most loan-to-value tiers. Perhaps more strikingly, the bank has streamlined its large loan fee structure into a flat £1,999 charge on borrowing up to £5 million, replacing what was previously a more tiered and often confusing fee arrangement.

A flat fee on large borrowing is a meaningful simplification for anyone comparing deals. Under the old system, fees for bigger loans could scale in ways that were hard to predict upfront. Knowing the fee in advance, regardless of whether you're borrowing £2 million or £5 million, makes it far easier to compare the true cost of a mortgage against competitors.

Why This Matters If Your Income Is Complex or Self-Employed

Borrowers with straightforward, single-employer salaries have never really struggled to access larger loans, provided their income supports it. The real winners from this shift are self-employed applicants, company directors, and anyone with income drawn from multiple sources, precisely the profiles that mainstream high-street underwriting has traditionally found harder to assess quickly.

Dedicated larger-loan teams tend to take a more holistic view of an application, looking at the full picture of a borrower's finances rather than applying a rigid, one-size-fits-all checklist. If you've been putting off a house move or remortgage because you assumed your income structure would complicate a large loan application, now is a sensible time to revisit that assumption with a broker who knows which lenders are genuinely flexible.

Rates Are Still Moving Too

These larger-loan changes haven't happened in isolation. The same week saw a flurry of rate cuts across the market, with reductions of up to 16 basis points on residential and buy-to-let ranges, and first-time buyer two-year fixed rates at 60% loan-to-value falling below 4.5% at some lenders. High loan-to-value products have also come down, with rates on 95% and 98% LTV deals easing slightly.

Taken together, this points to a market where lenders are competing hard on multiple fronts at once, on price, on maximum loan size, and on how quickly and flexibly they can assess more complex cases. For borrowers, that competition is good news, but it also means the best deal for your circumstances depends heavily on matching your specific profile to the right lender.

The Takeaway

If you need to borrow a larger sum, particularly with income that doesn't fit neatly into a standard employed-salary box, this is a genuinely better moment to be in the market than it was even a few months ago. New dedicated larger-loan services, higher maximum loan sizes, and simplified fee structures are all working in your favour. The key is knowing which lenders' new criteria actually fit your situation. At Mortgage Centre, we specialise in matching complex income and self-employed borrowers with lenders who understand cases that don't fit the standard mould, whatever the size of the loan.