The high-end mortgage market is virtually extinct, with most lenders not willing to go one pound over a £1 million mortgage, according to a leading financial adviser.
Head of mortgages at Bestinvest Peter O'Donovan said although there are still high-end mortgage products available, there is a reduced choice for borrowers.
And according to HFM Columbus the reduced availability of mortgages means anyone willing to lend will charge higher rates and fees.
Commenting on the availability of financial products for those looking to buy an expensive home, Peter O'Donovan said: "The amount of lenders who are prepared to go to a million pounds has reduced considerably.
"I think it is partly due to the fact that lenders feel they have a smaller amount of money available to lend to at the present time."
Research by Halifax earlier this year showed the sales of £1 million properties in the UK rose by 36 per cent in 2007 to more than 8,000, with nearly 80 per cent of sales occurring in London and the south-east.
But high-end properties only account for 0.6 per cent of total property sales in the UK.
