Can you still get you a mortgage over five times salary and if so what is needed
The answer is “yes” but it depends on your personal circumstances but its not going to be easy to get a mortgage over five times salary. In short the maximum income multiples are currently sitting around 4 to 5 times salary for most applicants who do not have children. If you do have children then it’s unlikely that you would be offered beyond 4.75. It’s not an exact science as the lenders these days look closer at your net income and spend rather than a simple multiplication formula.
However the better news is if you are single and in a good career I can probably obtain a higher amount, read on to find out more.
What is the criteria to get the mortgage over five times salary?
Below is the policy of one lender that regularly lends on mortgages over 5 times salary and on occasions up to 6 times income.
Client profile for mortgage over five times salary
• Applicant must earn over £50,000 a year
• Only 50% of bonuses are taking into consideration for affordability
• New jobs are fine provided the applicant has passed their probation before the mortgage completes.
• Perfect credit profile no late missed or defaulted payments
• Minimum of 25% deposit. Gifts towards this figure from certain family members may be accepted.
• Maximum term of the mortgage can be up to 35 years
What will affect your chances of getting a mortgage over five times salary:
• Outstanding credit cards, personal and students loans will impact on the amount that will be lent.
• Pension contributions.
On the whole mortgage over five times salary are a lot more complex and will always be manually underwritten which means things will take longer to arrange. Be prepared for the lender to ask for a lot of supporting documentation and to question the extent and regularity of your outgoings. The encouraging aspect of these type of lenders is the decision is made by an Underwriter, and with our help together we can explain things better and put the positives across, unlike a cold computerised or factory style decision which is often used in lenders.
For more information on getting a mortgage over five times salary salary. Please complete the enquiry form on this page or alternatively call us on (020) 7993 2044
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
