In this guide, we will refer to the biggest mortgage lenders in the UK in relation to how much they have learnt and which mortgage lenders offer the biggest mortgage on average to borrowers.
It is important to note that because a mortgage lender offers a big mortgage on average this doesn't mean you will be eligible for a similar sized mortgage with the lender and you should always seek financial advice from a mortgage broker if necessary.
The biggest mortgage lenders in the UK based on total lent were:
Lloyds banking group- £290bn
Nationwide Building society- £176bn
Santander UK- £154bn
Royal Bank of Scotland- £136bn
The biggest mortgage lenders in the UK based on average borrowed:
These mortgage lenders are listed based on the average they will borrow on the scenario below.
- Annual income: £30,000
- Deposit: £25,000 (which was 10% of the property price)
- Mortgage term: 25 years
Barclays lent on average £150,000 with an income multiple of 5
Lloyds Banking Group (Halifax, Scottish Widows, Lloyds Bank) lent on average £142,500with an income multiple of 4.75
HSBC lent on average £142,500 with an income multiple of 4.75
Coventry Building Society lent on average £135,000 with an income multiple of 4.5
TSB lent on average £135,000 with an income multiple of 4.5
Nationwide lent on average £134,700 with an income multiple of 4.49
Virgin Money lent on average £134,700 with an income multiple of 4.49
Yorkshire Building Society lent on average £134,700 with an income multiple of 4.49
Santander lent on average £133,500 with an income multiple of 4.45
RBS lent on average £127, 500 with an income multiple of 4.25
If you are looking for a mortgage you may be able to get some government help with your mortgage deposit and a government home buying scheme could even reduce the total amount you have to borrow from a UK mortgage lender.
Some of the government schemes available include:
- Lifetime ISA- gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
- Help to buy ISA- gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
- Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
- Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
- Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
- Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
- Right to buy- allows you to buy your home at a discount price.
- Preserved right to buy- same as above.
- Right to acquire- same as above.
You may also be able to get 0% LTV mortgages from specialist mortgage products.
They are a certain type of mortgage known as a family springboard mortgage, they include mortgages from lenders such as the Barclays family springboard mortgage, the lloyds lend a hand mortgage or thebpost office family link mortgage.
If you are looking to get a big mortgage then you may want to seek the help of a mortgage broker as mortgage brokers will have access to more products than a mortgage lender and will be able to inform you on which mortgage lender may be able to offer you the biggest mortgage based on your mortgage affordability.
If you have bad credit (you should build credit to improve your mortgage affordability) or are self-employed then you may need to speak with a bad credit mortgage broker or a self-employed mortgage broker as your situation may be more complex and getting mortgage offer for a big mortgage may be much harder.