Published 28 April 2017 · Last reviewed 20 June 2019 · Older article — see current rates
Mortgage for 4 people using 100% of all incomes to help with affordability.
Increase your mortgage borrowing by using incomes from more than 2 applicants
Believe me common sense can prevail if more than two incomes are coming into a household then we have access to a Lender that will take them into consideration. That’s right up to 4 applicants incomes can be used when assessing affordability and the results can be startling.
To put this innovation into perspective the majority of UK Lenders limit the number of mortgage applicants to two, a typical husband and wife scenario, and have built their systems around this ideal. A case of one size hoping to fit all. Those that had a little more foresight allow for a greater number of applicants but usually calculate the mortgage amount against the two highest salaries and ignore the income from the other applicant’s altogether.
Those avid readers of my blogs will know Niche Advice relentlessly trawls the market to find Lenders willing to break away from the mould and lovingly present the opportunities to our followers. In theory the Lender will do 5 times all 4 applicant’s incomes, but from the testing I have done it normally caps out at 4.5 times nevertheless as the table below shows this could be the difference between studio and penthouse or terrace and detached!
Niche Advice is happy to work out your maximum borrowing ahead of any credit searches or charges.
Example of the benefit of using 4 applicants’ incomes for a mortgage
Applicant 1 Applicant 2 Applicant 3 Applicant 4 Usable income
£35,000 £24,000 £15,000 £12,000 Niche lender £86,000
£35,000 £24,000 Not taken Not taken Normal lender £59,000
So if you were to apply a typical Mortgage Lender 4.5x income multiple you could borrow £387,000 on the Niche recommendation as opposed to £265,000 via normal Mortgage Lenders. That’s right an uplift of £122,000.
Example of the mortgage product for 4 applicants’ income for a mortgage
To see the pricing of a 4 applicant income mortgage, please click here.
So if you were to apply a typical Mortgage Lender 4.5x income multiple you could borrow £387,000 on the Niche recommendation as opposed to £265,000 via normal Mortgage Lenders. That’s right an uplift of £122,000.
Niche Advice offers appropriate advice for mortgage applicants looking to get the biggest mortgage including those that want to enlist multiple applicants. To find out more complete our online contact form or call T: 020 7993 2044.