Published 19 November 2015 · Last reviewed 30 September 2019 · Older article — see current rates

Great news for borrowers – another Lender has announced that they can now potentially offer Mortgages above five times income multiples

We now have another Lender who has decided to join the ranks of Lenders who would potentially lend Mortgages above five times income multiples.  The product is predominantly focused on high net worth individuals who they class as clients whose needs meet the basic income threshold of £75,000 for individuals or £100,000 for joint applicants.  The Lender has increased the maximum income multiple for applications from 5 x to 5.5 x.

The criteria around annual bonus contributions has also been tweaked, as historically they were limited to the level of the applicant’s basic income, these have been removed for individual borrowers earning more than £150,000 which can help many applicants working in the City who have no basic salaries but are subsidised by large bonuses.

The change to the annual bonus criteria will apply to residential applications only; other rules on annual bonuses will remain in place.

The downside to this particular Lender and its product range is that they will take into account the applicants part of the pension contribution, as well as things like council tax, which can have a big impact on affordability. You also have to open up a Premier current account and go through the qualification process before you can apply for the mortgage.

Niche Advice have a number of Lenders that can potentially lend over five times income for applicants, but each have their own specific lending criteria, which need to be met to avoid disappointment at application stage.

If you are looking at Mortgages above five times income multiples, the general rule is that you need to be earning a very good level of income, certainly over £50,000, and with most lenders put down substantial levels of deposit.