Getting a Mortgage for 5 or 5.5x Your Salary

In this article, we look at how you can borrow up to 5.5x your income, what the criteria is and what the application process involves.

Can you get a mortgage based on 5 or 5.5 times your salary?

Yes, it is possible. Each lender has their own ‘maximum income multiple’, meaning the maximum amount they’ll lend you, as a multiple of your annual salary. Usually, they’ll allow you to borrow up to four times and 4.5 times your total annual income. But, in a few cases, you can borrow more, particularly if your income is high, e.g. over £60,000-100,000.

You may even be able to borrow more than 5.5 times your income. If you’re a young professional, e.g. an accountant, doctor, dentist, lawyer, or pilot, you might be able to get a mortgage for six times your salary.

What about joint applications?

Joint mortgages are common and they are calculated in the same way as a single one would be, the only difference being that both incomes would be taken into consideration. As you have more income, you may also have access to these higher income multiple deals as well.

Understanding how much you can borrow

Here you’ll be able to see how much you could potentially borrow based on 5x and 5.5x your annual salary, comparing it to the standard of 4.5x. Note that 5.5-times income mortgages often require an income of £60,000 or more.

How to borrow over 5x your salary

Your first step should be to find a mortgage broker with experience arranging mortgages based on this salary multiple as this will boost your chances of getting approved at the best terms available.

Using our free broker-matching service you can speak straight away to the right broker by simply making an enquiry online. They’ll be able to help with:

• Readying all the necessary paperwork
• Downloading your credit reports
• Finding the right lender and securing the best deal for you

Other factors that affect your mortgage application

As well as your income, there are a number of other elements that may determine the outcome of your application and how much you can borrow.

While most lenders will set their own set of criteria, there are some common principles you may find:

• Your spending habits and outgoings: While your salary might be high, how you manage that income might be key. The more prudent and stable you are, the stronger your application will be. For example, Norton Home Loans works from income against expenditure as its benchmark, rather than income multiples.
• Your profession and earnings: Some lenders will base criteria on what you do for a living and what your salary is. For example, some will lend to lawyers, doctors and engineers, while others, such as Teachers Building Society, require a minimum £200,000 salary for more than 5x multiple income.
• Deposit amount: If you’re a first-time buyer, it’s likely you will have to put down a substantial deposit to secure a larger income multiple debt. While most lenders will decide this at their own discretion, it’s most likely that 5x salary mortgages will demand at least 15% deposit, such as TSB, for example.
• Credit history: Like the deposit amount, there are no hard and fast rules on this element, however, it is something that will be looked at. A poor credit rating is not necessarily a deal-breaker, but you could face obstacles and a limited choice of lenders if it’s not favourable.

Which lenders are available?

Santander, Barclays, and Halifax all offer mortgages of up to 5.5 times your annual income in certain circumstances. Other lenders, including NatWest and Together Mortgages, do not have a specified maximum income multiple, as income is considered in the overall context of all the factors in their affordability assessment.

What are the typical rates you should expect?

Higher borrowing multiples tend to attract higher rates, as lenders view them as riskier. However, the more attractive and secure you are to a lender, the more stable a borrower you will be considered and therefore rewarded with better rates.