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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 22nd June 2020*

We hear from countless customers who are wondering whether it’s possible to take out a mortgage based on either 4 or 4.5 times their salary.

The answer very much depends on your personal circumstances and the lender you approach, but the good news is that specialist advice on this very topic is at hand.

Jump to our calculator journey to establish what you can afford, the costs and which of the best deals you’ll qualify for.

In this article, you’ll learn whether you’d qualify for a mortgage based on these income multiples, how to get one, and where to go for the right advice from a whole-of-market broker.

The following topics are covered below…

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Can I get a mortgage based on 4 or 4.5 times my salary?

This level of borrowing is standard for many mortgage lenders, while some providers cap their lending at 3-4 times your income, most will stretch to 4.5 times under the right circumstances. Whether you qualify to borrow at this level will depend on your personal circumstances as lenders will always want to ensure you meet their eligibility and affordability criteria.

To qualify for a higher salary multiple, you’ll have to meet all, or at least most, of the criteria on their eligibility checklist.

Read on to find out more about how a mortgage lender will calculate how much you could potentially borrow or make an enquiry to speak with an expert advisor.

Mortgage Calculator for 4-4.5 times salary

To give you a quick idea of how much you can borrow, we’ve put together a calculator specifically for 4 or 4.5 times your salary. Our calculator can only give you a rough estimate (as other factors such as adverse credit or your employment type will affect the rate offered to you), though you can use it as a starting point when speaking to a mortgage broker.

Affordability Range (4x)

Once you’ve worked out roughly how much you could borrow, make an enquiry. We’ll then match you with a broker who can look for the best deals that are in your price range.

How maximum loan amounts are calculated

You’ll need to know what the maximum loan you’re eligible for is before you take out a mortgage based on 4 or 4.5 times salary.

There are several factors that will affect your eligibility but the main way lenders work this out is to look at your salary and multiply it by the amount you wish to borrow, such as a mortgage based on 4.5 times income.

Lenders also take loan to value (LTV) ratio into consideration, which refers to how much you want to borrow in relation to the value of the property. They will set an upper LTV limit for what the highest mortgage loan they would except though it doesn’t mean you’ll be eligible for it. How much you’re offered is related to your personal circumstances.

So, how much can you afford?

Can you get a mortgage for 4 times your salary? To answer this question, you first need to know what you can afford. This is affected by a number of factors including what your income and outgoings are, and whether or not you have any bad credit.

One of the variables lenders look at is your salary and monthly spending. This may include your benefits and other sources of income as well as bills, any debt repayments you have and general living costs such as food and travel. If you have children your monthly spend may be higher.

You also need to prove you can afford to cover a mortgage and any changing interest rates or unexpected circumstances arising such how you’ll keep up repayments if you’re made redundant.

Many lenders these days use calculations from the Office of National Statistics to work out their affordability so lenders who use the same income multiple can still offer different loan amounts. Thankfully the advisors we work with are highly experienced and know whose calculations are more generous.

The best way to know if you can afford a mortgage, and for how much is to speak to an independent broker who’ll be able to recommend the right provider for your needs, based on your budget and circumstances.

For more information on finding out how much you can afford, see our affordability section, make an enquiry or give us a call on 0808 189 2301 and we’ll refer you to one of the experts we work with.

How much deposit do I need for a 4-4.5 times salary mortgage?

Usually, the more you want to borrow, the bigger the deposit required. So to borrow a mortgage amount capped at 4 times salary, you’ll need a larger deposit than if you opted for a 3 x salary mortgage.

Generally speaking, most lenders will accept a 10% deposit for a residential property, although others will be happy with as low as 5%, under the right circumstances.

The exact amount of deposit you’ll need depends on factors including the type of property you wish to buy and its LTV calculations. Speak to one of the experts we work with to find out what deposit you need for a mortgage based on four times your salary.

Can I borrow 4-4.5 times my salary on a solo mortgage?

Yes, it’s certainly possible to get a mortgage as a single applicant with this income multiple.

For example, if you have an income of £28,000 a year and a lender provides you with a loan 4.5 times your salary, you could potentially get a mortgage of £126,000.

Remember that each lender has different lending criteria, though they will consider your affordability (income and outgoings) to make sure that you can meet the loan payments alongside any other expenses.

What’s the best way to find mortgage lenders offering 4.5 times salary deals?

Make an enquiry here to apply through a whole-of-market broker.

The best way to find out if you are eligible for a 4 times salary mortgage, or what amount you could be considered for is to speak to a mortgage advisor or broker. We can put you in touch with the experts we work with to answer any questions you have to find the right solution for you.

Can I get a mortgage based on 4 times joint income?

Generally speaking, if you’re sharing a mortgage with someone else you should be able to take out a larger mortgage, including a mortgage based on 4.5 times joint salary. Bear in mind that if one person in the partnership is unable to keep up with repayments, the other person will be responsible. If you’ve taken out a mortgage that’s more than you can afford on your own you may have difficulties paying it back.

The best way to know if a joint mortgage it right for you is to speak to an expert like the ones we work who will have experience in this area. Find out more about joint mortgages in this article that explains what’s involved here.

Can I get a Help to Buy mortgage based on 4-4.5 times my salary?

If you’re buying your property with assistance from the Help to Buy scheme, you should be able to find a mortgage lender offering 4.5 times salary as this is the maximum you can apply for in Help to Buy property schemes. Other help to buy mortgage restrictions may apply.

What other factors affect my eligibility for a 4-4.5 times salary mortgage?

Whether you qualify for a mortgage based on a higher income multiple, such as 4.5 times your salary, will likely depend on the factors we’ve already discussed in this article, such as your income, outgoings and then the amount of deposit you have.

However, the following variables could also end up proving the difference between you securing a mortgage based on x4 your salary and a mortgage based on x4.5 your income.

  • Your credit rating: Having bad credit on your file could mean you’re offered unfavourable rates, a lower income multiple or that you’re turned away together. However, there are specialist lenders who cater to bad credit customers. Read more about bad credit mortgages.
  • Your age: Some lenders might be wary of offering you a higher income multiple (such as 4.5 times your salary) if you’re retired. In fact, some lenders won’t lend to anyone over 75, others over 85, and a minority will lend with no upper age limit under the right circumstances.
  • The property type: A specialist lender might be needed if you’re buying a unique property, as some providers will be reluctant to offer a higher income multiple if the building has non-standard construction. Read more on non-standard construction mortgages here.

Borrowing more than a mortgage based on x4 salary

Though you may have planned for a mortgage based on 4 times your salary, or 4.5, some lenders under the right circumstances, may offer a ‘supersize mortgage’ 5x or 6x mortgage. These higher mortgages are aimed at newly qualified professionals such as accountants and solicitors and doctors whose income is expected to increase. Do keep in mind that some customers qualify for less than a 4 x salary mortgage and so may be offered a 3 x salary mortgage.

You can find out more about a mortgage that’s three times your salary here. Or make an enquiry and we’ll refer you to one of the experts we work with who can give you the right advice.

Speak to an expert about mortgage affordability

If you have questions about 4.5 x salary mortgage and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 22nd June 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.