Multi-million pound mortgages from high street lenders are heading for extinction, mortgage brokers said yesterday, as banks impose tough new limits on how much they will lend, or charge steep arrangement fees of up to £40,000.

Abbey, Nationwide, Chelsea and Intelligent Finance have all slashed the maximum amount they will lend in recent months, while mortgages for £2m and more at the Halifax, Bank of Scotland, and Birmingham Midshires brands carry fees running to tens of thousands of pounds.