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Most UK mortgage lenders will let you borrow 4-4.5 times your salary, but will any offer mortgages based on 5 times your income? Read on to find out.
Is a mortgage 5 times your salary?
Only some lenders will be willing to offer you a mortgage of this size as the majority of UK mortgage providers cap their maximum lending at 4.5 times annual salary.
If you need to borrow 5 times income, not only will you have fewer lenders to choose from, you might also need a stronger application than somebody borrowing 4.5 times salary.
For higher income multiple deals, there are lenders who have stringent requirements for the loan-to-value (LTV) ratio and some will expect you to be earning a higher amount of income.
A 5 times salary mortgage isn’t the highest available in the UK. A smaller number of lenders offer 5.5 times income borrowing, and a handful go up to 6 times salary.
Check if you are eligible
The eligibility requirements for a 5 times salary mortgage can be stricter than the criteria for a mortgage based on a lower income multiple. They are as follows:
- Income requirements: Some lenders a minimum amount of income for 5 times salary mortgages. A typical specified amount is £50k and applicants who earn below this may only be offered a mortgage based on a lower salary multiple.
- Deposit requirements: Your chances of securing a higher income multiple will improve if you have at least 15-20% deposit to put down.
- Mortgage size: Some lenders have a maximum mortgage cap for x5 salary loans. For example, Halifax, won’t offer this income multiple for mortgages over £750k.
- Other factors: Having bad credit, a mortgage term that runs into your 75th birthday and buying a non-standard property are risk factors that can make it more difficult to secure 5 times salary lending, due to restricting your access to lenders and deals.
If you are confident you will qualify for a 5 times income mortgage, you can start comparing rates and deals below. Select the ‘speak to an adviser’ option if you are unsure.
Take the next steps on your mortgage journey with us
Calculate your maximum borrowing
You can use our calculator below to work out how much you can borrow based on five times your household income (and other income multiples for comparison purposes).
The above figure is merely a ballpark estimate for your maximum borrowing. Some lenders will allow you to declare supplemental income, such as benefits, investments, rental income and regular bonuses and commission, on top of your salary to boost your affordability.
Meanwhile, outgoings such as council tax, utility bills, broadband, loans or credit cards, car payments, and childcare costs will be factored in and can reduce your maximum borrowing.
For bespoke affordability calculations, speak to a mortgage broker.
How to get a 5 times salary mortgage
We recommend following the steps below to secure a 5 times income mortgage:
Save extra deposit: You will likely need at least 15-20% deposit to access a lender’s higher income multiple range, but the more you can put down, the better.
Optimise your credit files: You can download your files for free on Checkmyfile. Reviewing them and requesting for outdated or inaccurate information to be removed can boost your credit position and increase your mortgage options.
Speak to a broker: As five times salary mortgages are harder to come by, speaking to a broker is recommended before you proceed. Our brokers have access to lenders who use this income multiple and can help you secure it - get started here.
Which lenders offer five times income mortgages?
The table below shows examples of lenders who will offer 5 times salary mortgages and the criteria they set for this income multiple.
|
Mortgage Lender |
Criteria For x5 Salary Mortgages |
|
LTV less than 90% and total income over £80k |
|
|
LTV less than 85% and total income over £50k |
|
|
Total income over £50k |
|
|
LTV between 75.01-85%, total income over £75k and must be borrowing under £750k |
|
|
LTV less than 85% and total income over £45k (two highest earning applicants combined) |
Example calculations
The table below shows example calculations of how much you can potentially borrow with specific salary amounts between £20k and £75k, based on five times each income amount.
|
Salary Amount |
Max Mortgage Based On x5 Income |
|
£20,000 |
£100,000 |
|
£125,000 |
|
|
£150,000 |
|
|
£35,000 |
£175,000 |
|
£200,000 |
|
|
£45,000 |
£225,000 |
|
£250,000 |
|
|
£55,000 |
£275,000 |
|
£300,000 |
|
|
£65,000 |
£325,000 |
|
£70,000 |
£350,000 |
|
£75,000 |
£375,000 |
Why choose Teito for your mortgage needs?
Now that you have run some calculations you can take the next steps on your mortgage journey by comparing rates and deals for free on our service. You can speak to one of our mortgage brokers at any point in the process if you need advice about your options.
Here are just some of the reasons people source their mortgage with Teito:
- You can access the latest mortgage rates in seconds
- Our brokers can secure exclusive x5 salary mortgage deals
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to get started comparing rates and take advantage of a free, no-obligation chat with a broker who specialises in five times income mortgages? Get started here.
FAQs
Yes, potentially. There are UK mortgage providers who offer mortgages of 5.5, 5.75 and even 6 times the borrower’s annual salary under the right circumstances, but the eligibility criteria becomes increasingly stringent for these higher income multiples.
Mortgages based on 6 times salary tend to be reserved for applicants in prestigious professions, such as medicine, law and the emergency services.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.