High-end mortgage demand continues

Demand for mortgages of more than £500,000 has increased by 42 per cent in the last 12 months, according to a report.

Citing Council of Mortgage Lender figures, the Times said that the prices of multi-million pound homes in the capital could fall in the coming months but high-end mortgages are still in vogue.

James Cotton of the mortgage broker London & Country said that millionaires were finding that the cheapest way to fund their new property purchase was to go into debt rather than compromise the earnings from deposits in high interest accounts.

However, while "millionaire mortgages" often came with five-star customer service, often the best rates were not available with high-end products.

"Those willing and able to commit to a home loan of £1 million or more may be surprised to find they don''t have access to the best fixed-rate deals on the market," he told the newspaper.

Meanwhile aboutproperty.com recently reported that house prices had fallen by 2.6 per cent during September.

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