Mortgages worth over £1m could soon be wiped out and the few remaining deals charge unreasonably high fees, according to HFM Columbus.

However, it is not all bad news as private banks are predicted to intervene by allowing high net worth clients to purchase expensive properties.

Gary Festa, director HFM Columbus said, “Private lenders rarely looked attractive in the past, but now many of them are looking very attractive against the limited retail offering. The difference of course is that rates and fees are individually negotiated, which is where mortgage broker expertise comes in,” he says.

The company says many lenders will offer mortgages of up to £1m, but just one pound over this amount and the options available to borrowers become very limited.

Mr Festa added, “Assuming you can find a lender prepared to arrange a loan in excess of £1m – and we are talking about barely a handful – the fees become crippling, even for those with up to 50% loan to equity.”

HFM further says buyers at the top end of the market are even more limited, with just four lenders offering mortgages of over £5m.

According to the company, private banks are likely to become an attractive option for wealthy buyers and add that mortgage brokers are well placed to help clients.