How much stamp duty is due on a £2m+ home?
In England, stamp duty on a main home is charged in bands. The portion from £925,001 to £1.5m is taxed at 10%, and anything above £1.5m at 12%. On a £2m+ purchase, that is a large sum to fund from cash. It is usually due within 14 days of completion.
An additional property attracts a 5% surcharge on top, and non-UK residents pay a further 2%. These can apply together. Stamp duty cannot normally be added to a standard mortgage, so plan your liquidity carefully. Check figures with our stamp duty calculator and take tax advice for complex purchases.
What is the planned high value council tax surcharge?
The government plans an annual surcharge on homes in England valued over £2m, collected from April 2028. Published proposals suggest charges of roughly £2,500 to £7,500 a year, depending on value band. Details are subject to consultation outcomes and final legislation.
The surcharge is paid by the owner, on top of normal council tax. It is worth factoring into your long-term running costs now. The Autumn Budget on 28 October 2026 may bring further detail. We do not give tax advice, so speak to a tax adviser about your position.
Owners may be able to challenge their valuation band once notified. If you are buying close to the £2m line, the band your home falls into could make a noticeable difference to running costs. Keep records of the price paid and any works carried out.
How much can I borrow on a high-value home?
Many lenders offer up to around 75% to 80% loan-to-value on loans up to £1m, with lower maximums as loans rise above £2m. Some high-street lenders cap their total lending per borrower. Private banks and specialist lenders often lend larger amounts, sometimes on a more flexible basis.
Affordability on large loans is usually assessed manually. Lenders look closely at your income structure and assets. If you are relying on an onward sale, see our bridging loan guide. Remember that bridging is expensive short-term borrowing.
Will lenders understand complex income?
High earners often have income that standard scoring cannot read well. Specialist and private bank lenders are more likely to consider:
- Large or variable bonuses, often averaged over several years.
- Dividends and retained profits for company owners.
- Partnership drawings, LLP profit shares and carried interest.
- Rental and investment income, including from overseas.
- RSUs and deferred compensation, in some cases.
Presenting this income clearly, with accountant support where needed, makes a real difference. Lenders usually want two or three years of evidence for variable pay, such as P60s, bonus letters, LLP accounts or tax returns. A short covering summary of how you are paid can help an underwriter understand your case quickly. A broker can approach lenders whose underwriters handle these structures regularly.
Should I consider interest-only?
Interest-only is common on high-value loans because it keeps monthly payments lower. Lenders require a credible repayment plan, such as the sale of the property, investments, pensions or other assets. Many set minimum income or equity levels for interest-only.
With interest-only, the loan does not reduce over time. If your repayment plan falls short, you may need to sell. A part-and-part mortgage, mixing repayment and interest-only, can be a middle ground. Read our interest-only mortgages guide before deciding.
Why can valuations be harder on prime property?
Prime London homes are often unusual, with few direct comparables. Valuers may take a cautious view, especially for very large, newly refurbished or highly individual properties. A down-valuation can reduce your loan and leave a funding gap.
For leasehold flats, check lease length, ground rent and service charges carefully. Short leases can limit lender appetite. Listed buildings, mixed-use properties and homes with large grounds may also narrow the lender panel. Raising these points early helps avoid late surprises.
Timing matters on competitive purchases. Large loans can take longer to underwrite, especially with complex income or overseas assets. Source-of-wealth checks can also add time. Agreeing a lender's approach before you offer, and having a valuation booked quickly, can make your position stronger with the seller.
How should I prepare?
Start with a clear picture of your income, assets, liquidity and timescales. Line up a solicitor experienced in prime property and, where needed, a tax adviser. Then compare high-street, specialist and private bank options together.
OMB is based in Mayfair and arranges large and complex mortgages across the market. See our high-value mortgages page and our guide to private bank mortgages.
Your home may be repossessed if you do not keep up repayments on your mortgage.
High-value mortgagesLarge mortgages of £1m, £2m and above for prime London and high-value homes across the UK.
Explore high-value mortgagesFrequently asked questions
What is the maximum LTV on a £2m mortgage?
It varies by lender. Many lenders offer up to around 75% to 80% on loans up to £1m, with lower maximums on larger loans. Above £2m, around 60% to 75% is more typical, though private banks may consider other structures. Your income, assets and the property all affect the outcome.
When does the £2m council tax surcharge start?
Current plans are for the high value council tax surcharge to be collected from April 2028 on homes in England valued over £2m. Published proposals suggest annual charges of around £2,500 to £7,500. Details may change following consultation and final legislation, so check the latest position.
Do I need a private bank for a mortgage over £2m?
Not necessarily. Some high-street and specialist lenders lend above £2m, subject to their criteria. Private banks often suit borrowers with complex income or significant assets, and may expect you to hold investments with them. Comparing all routes shows which is most suitable.
Can I get an interest-only mortgage on an expensive home?
Yes, many lenders offer interest-only on high-value homes if you have a credible repayment strategy and meet minimum income or equity requirements. The loan balance does not fall over time, so your repayment plan must be realistic and reviewed regularly.
How is bonus income treated on a large mortgage?
Lenders often average bonuses over two or three years, or use a percentage of the most recent bonus. Some specialist and private bank lenders take a fuller view of variable pay. Evidence such as P60s, payslips and employer letters is usually required.
Is stamp duty higher on homes over £1.5m?
Yes. In England, the portion of the price above £1.5m is charged at 12% for a main home. Additional properties pay a further 5%, and non-UK residents pay an extra 2%. These surcharges can apply together. Take tax advice on complex purchases.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.