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Mortgage Advisor & Director
You may know that mortgage affordability is based on income multiples, but can you get a mortgage based on 4.5 times your salary? Find out here.
Is a mortgage 4.5 times your salary?
Yes. At the vast majority of UK mortgage lenders, it can be up to this amount. Obviously you can borrow less than this if you need to, but 4.5 times salary is the typical lending cap you will encounter when searching the market for the right mortgage provider.
A smaller number of mortgage providers will offer mortgages of 5-6 times income under the right circumstances, but there will likely be caveats and additional requirements to meet.
Example calculation: If you have an annual salary of £40,000, the maximum mortgage you will qualify for at most lenders is £180,000 (40,000 x 4.5 = 180,000).
Can you borrow more than this?
The exact amount you can borrow will depend on a few other factors as well as your annual salary. If you have any supplemental income, such as benefits, commission, investments or freelance earnings, some lenders will factor this in to boost your affordability.
It may also be possible to get a mortgage based on 5 times income, 5.5 times income or even 6 times income, but lenders tend to reserve these deals for borrowers with stronger applications, such as individuals with higher deposit amounts and clean credit.
For income multiples over 4.5, some lenders have minimum income requirements (anywhere from £60k up) and LTV caps, expecting it to be 85% or lower. Six times salary mortgages are usually reserved for borrowers in prestigious professions, like medicine and law.
You can use our mortgage calculator below to get an idea of how much you can borrow based on various income multiples. Enter your salary below to get started.
How to get a 4.5 times salary mortgage
If you need to borrow 4.5 times your annual income, the good news is that there are plenty of lenders and deals available. Follow the steps below to find the right ones for you:
Make sure you’re eligible: You will ideally need 5-10% deposit, clean credit and be no older than 75 during the mortgage term. Approval is still possible if you don’t meet these requirements, but you should seek professional advice about your options
Check your credit files: You can download your credit reports for free on Checkmyfile. Review them and request for any inaccuracies or outdated information to be removed as this can strengthen your application and increase your options.
Compare rates online: You can compare mortgage rates from across the market for free on Teito and choose the one you want in real-time - get started here.
Take the next step on your mortgage journey with us!
Example calculations
This table shows what size mortgage you can potentially get with different salary amounts if you were to successfully apply with a lender who uses the 4.5 times income multiple:
|
Salary Amount |
Max Mortgage Based On x4.5 Income |
|
£20,000 |
£90,000 |
|
£112,500 |
|
|
£135,000 |
|
|
£157,500 |
|
|
£180,000 |
|
|
£45,000 |
£202,500 |
|
£225,000 |
|
|
£270,000 |
|
|
£65,000 |
£292,500 |
|
£315,000 |
|
|
£75,000 |
£337,500 |
Which lenders offer 4.5 times salary mortgages?
Only a handful of regional building societies use a lower income multiple than 4.5 times salary to cap their maximum lending. Lenders who go no higher than 4.5 include:
- HSBC (4.49 times salary)
- Bluestone Mortgages
- Scottish Building Society
- Leek Building Society
In addition, lenders including Nationwide and Leeds Building Society use a slightly higher income multiple for maximum borrowing, both capping lending at 4.75 times salary.
Why use Teito for your mortgage needs?
Now that you know how much you can potentially borrow based on 4.5 times your salary, you can take the next steps on your mortgage journey with Teito. Our service allows you to compare rates for free and access support from a whole-of-market broker.
Here are just some of the reasons people source their mortgage through us:
- You can access the latest mortgage rates for free in seconds
- Our brokers have access to exclusive deals
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare rates and deals for free and take advantage of a free, no-obligation chat with a broker who specialises in 4.5 times salary mortgages? Get started here.
FAQs
You will need to declare fixed outgoings such as council tax, utility bills, broadband, loan or credit cards agreements, car payments, and childcare costs during the affordability assessment. Your lender will take these costs into account and deduct them from your declarable income before multiplying the total by 4.5 to work out your maximum borrowing.
Not all outgoings will reduce the amount you can borrow, but it is recommended that you clear any debts you are in a position to pay off before applying for a mortgage.
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.