Almas Uddin
Founder and Mortgage Advisor
21 Feb 2024
Mortgages at Fives Times Annual Income
UK lenders typically offer mortgages at four or 4.5 times your income - so what happens if you need to borrow five times your salary to get the mortgage you need?
Let's look at mortgages at five times income, how to qualify, and what sort of criteria will impact your application.
If you need a mortgage at five times your earnings, give us a call on 0330 304 3040, or email the team at [email protected] and we'll provide independent advice about the best way to secure this level of borrowing.
What are the Main Criteria for a Mortgage at Five Times My Income?
Generally, lenders prefer to loan a lower multiple of your earnings. This is partly because the Bank of England restricts lenders to offer no more than 15% of their loans at over 4.5 times income, and also because the higher the multiple, the higher the risk.
However, it is possible to get a mortgage at five times your income, or even at six times, with the right support from a whole-of-market broker.
Can a Mortgage Calculator Help with a Five Times Salary Application?
Online calculators are useful, and we offer a range of free calculators on the Revolution Brokers website.
They are a convenient way to get a rough idea about what you might be able to borrow but are only estimates and therefore can't give you any information about the likelihood of your application being approved.
For a detailed assessment of your circumstances, give the Revolution Brokers team a call.
Is a Joint Income More Likely to be Approved for a Higher Multiple Mortgage?
Joint mortgages are assessed on the same basis as individual applications, with both people's income combined.
In some cases, it isn't advisable to combine income to achieve a higher mortgage level, since each applicant will need to be separately assessed.
Should one of you have a clear credit history and the other not, for example, you might make it less likely that you'll secure a higher mortgage.
Given that five times income mortgages are a less common product, it's essential to meet lender criteria as closely as possible.
How DO I Know if I Can Get a Mortgage at Five Times my Income?
A lot depends on how closely you match the lending criteria. Each lender is different in how they calculate affordability, or what risk they are willing to accept, but all will consider:
- How much deposit you have - the larger the deposit, the lower the risk.
- Your income - the higher your salary, the better, and the type of employment you have is also a factor. If you are self-employed or earn variable income based on commissions, for example, you might be best off with a specialist lender.
- Affordability - lenders will need to assess any other debts you have and your regular outgoings to see whether you can afford the monthly repayments.
- Credit - a higher-risk mortgage of this nature will need you to have a healthy credit score and no severe issues on your credit record.
- The property - any unusual constructions or non-standard properties will be harder to mortgage at five times your income.
Professional Advice with Mortgages at Five Times Income
If you need a mortgage at five times your salary, the best way to get started is to consult an independent, whole-of-market broker who can search the market for the most viable products, and negotiate the terms on your behalf.
Give the business loan broker team a call on 0330 304 3040, or drop us an email at [email protected] to get your application started.
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