If your property is worth more than £1m, how much is your monthly mortgage?

[someoneiou]

Because honestly, I'm looking at rentals and the they're about £3,800-£4,500pcm for a house around that value (1-1.5m) and can't believe so many people would be paying this as a mortgage every month.

So if your property is worth over £1m what's your monthly mortgage payment? Did you buy it decades ago, or recently?

Just being nosey

Paid £1.5m for the house 5 years ago, worth about £1.8m now after quite a lot of work

Mortgage is around £5k a month for £900k with about 15 years left to go on it

Many ppl have a 1m+ pound house don’t have huge mortgages, as many lenders require a 20-30% deposit for houses over 500k. Those that do probably have the salary to match.

Our house is worth £700k but we have increased the monthly payments to around £4k so we can pay off the mortgage in 10 years. A lot of people will be paying that much.

Worth £1.2m, mortgage has £117k left, we pay £900pm. We're in our mid 40's/early 50's and bought our first houses in our early 20's so have been able to build up equity. We've also overpaid bonuses into it to get it right down. A tracker mortgage at 0.59% over base rate has helped a lot too.

Does anyone on mumsnet earn a normal (as in average) wage ? I'm fascinated by how so many can afford monthly mortgage payments of £4-5k.

£440k left on our mortgage and we pay £3,450pm.

House worth £1.1m

Our house isn’t in that sort of category, but the potential rental income is about 3 x our mortgage.

We pay around £600 a month, but it would cost us us around £1800 to rent a similar house in the area.

Not quite a million but about £250 interest only mortgage

@juliettbravo yes lots do but people like hearing about abnormally rich people so ask these questions and the abnormally rich like to respond.

@Juliettbravo this is a thread about £1mil+ homes though, so it’s bound to be full of high earners or people who have a lot of family money.

I think it comes into a few categories-bought early, good deposit, good or excellent salary, low cost of living (e.g. minimal holidays etc.)

A lot of people living in houses that expensive will have bought the house years ago so won't have paid anywhere near that amount. They might also have benefited from increases in value so they've had previous equity to use.

Additionally, it used to be possible to get an interest only base rate tracker mortgage without any concrete plan to pay the mortgage off. You're then only committed to paying the monthly interest, which might be not very much at all if it was one of the low margin lifetime trackers that were ten a penny pre 2007 crash.

So a relatively small proportion of people living in a million pound plus house will have anywhere near a million pound mortgage with thousands a month in repayments.

Mum in laws house is edging up to a million, it’s not especially big. Very desirable area 15 mins to central London on the train. She bought it thirty years ago. That was post divorce I know DH childhood home that was sold for the divorce is now worth 2 million! it sold a couple of years ago.

@Juliettbravo

Does anyone on mumsnet earn a normal (as in average) wage ? I'm fascinated by how so many can afford monthly mortgage payments of £4-5k.

I do. I don't know why I look at threads like this to be honest!

I had a mortgage a few years back of 1.2m. The repayments were just over 7k. I rented it out for a short time for much more than that.

My friend recently bought 1.3million pound house - he was lucky in that his previous home had shot up in value and so he had a large deposit, and pays 1500 a month mortgage.

Purchased in autumn of last year - 1.15 mortgage on a 1.55 house. Monthly payments are 3.7k.

Julietbravo the internet is always worth a pinch of salt

We know a couple of abnormally high earners, DH friends from University who work in international banking and earn silly money sort of in the 250k per annum. We have a lot of friends who are academics as our lifelong careers have been in higher education. The highest earner of that peer group was my mate an especially highly paid Professor who was on 100k per annum. Most academics will never earn anywhere near that salary. He still mooched in to the dept with holes in his jumper :) he was a total stereotype of how people view academics and a bona fide genius.

Paid just shy of £1.2 for this but no mortgage anymore, don’t know what it’s worth now, maybe £1.4 as we’ve done some work and the market has improved since. We bought this house with a load of equity from our previous house and a modest (relatively speaking) mortgage on this place. I think it was around £350k. I’d be surprised if most people with £1m+ houses have high LTV %.

We are looking to buy at the moment that are in the £700k range (I know, not over a million!). Our mortgage would be around £1500-1600. We have a large deposit. I would assume if you are able to buy something for over £1m and are looking to rent it out, presumably to make a profit, you would be looking to rent it for around that.

To give you some indication, I have a friend who is currently trying to buy a flat. Flat being purchased for £170K. Rents for a flat like that in the area are about £900-1000 pcm. That seems ridiculous to me! Only a bit less than what my mortgage would be on a 700+k house. But I think that is the rental market in many places.

@RosieLemonade me too. I read the education threads as well and the mind boggles. Discussions about Harrow and Winchester, this prep school v that one.... It's a different world.

We have an interest only mortgage for £150k so repayments are not much. Interest rates are low, so it's worth keeping the mortgage and keeping other funds invested rather than rather than pay it off.
House is worth approx £1.1m, we got it at a very good price a few years ago and put down about 65% deposit after selling previous house that was owned outright.

Paid 1.2M 6 years ago. Significant deposit of £290k from previous property...sold at the right time. Mortgage is £3,400 per month.

My dads property is worth over a million (due to area). He brought it for £250k, 20 years ago before the area became super desirable!
I'm not sure how much he pays, never asked- but suspect it's not several thousand a month!

I think the bigger question is not for those whose homes are worth £1m plus, as they may have bought it when it was a lot cheaper, but for those who bought homes at £1m plus!