I need a mortgage over five times income. Can you help me?
The answer is “maybe”. That’s because it is all dependent on your current circumstances. After the recent mortgage market review changes in 2014 things have certainly become more difficult when looking for a high income stretch. It’s no secret that the Government is trying to cool down the market and through the Bank of England and Financial Conduct Authority and has introduced measures to put pressure on the lenders not to lend so much. This is probably the reason why you:- the prospective buyer is searching on my site for solutions.
Most building societies now curtail lending between 3.5 to 4.5 times someone’s income. To surpass this level you are normally looking at centralised lenders and banks, many of whom are not directly assessable to the general public. Why is this? Well those institutions want to include an independent intermediary ‘mortgage broker’ (such as Niche Advice) in the process as it increases the chances that the borrowing is not excessive and that the income is sustainable, as the intermediary too is obliged to adhere to the regulator on this front.
What is the biggest detractors from getting, say getting 5.5 times your income? Well normally variable income (such as commission and bonuses), financial dependents (children that live at home), outstanding personal finance (such as personal loans, student loans and credit cards), other commitments (nursery fees, school fees and maintenance).
If you are unsure I would speak to a professional mortgage broker, such as Niche Advice, to ensure your individual case is positioned in the best possible way to the lender. This is not something that can be completed on a comparison site as all the lenders run their own affordability models so cross referencing is not possible unless you have had first-hand experience.
As a London based mortgage broker I’m regularly called on to deliver over five time income and do so successfully. I have the contacts in the lenders and will speak to them on your behalf. It could be the difference between your ideal home and compromising, my standard fee structure is fair* so why not give us a try.
*My standard fee for arranging a residential mortgage is £399. This is only payable once the mortgage has been fully approved and completes.