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Can I get a mortgage for 5 times my income?

Are there mortgage lenders who cap their loans at x5 salary? Find out here.

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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: 27th August 2019 *

We’re frequently asked ‘can I borrow 5 times my salary on a mortgage?’ Very often, by borrowers who’ve come across lender after lender who’s wary of lending anything above 4-4.5x.

In this article, you’ll learn about 5 times income mortgages - what they are, where to find them, and what it takes to get one.

Trying to get a mortgage for 5 times salary, or need a little advice? Get in touch. The mortgage experts we work with can help to clear up any confusion. They might be able to find the perfect 5 x salary mortgage for you.

Here’s what you’ll learn in this piece

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What do I need to know about getting a 5 x income mortgage?

As you may have already discovered, many lenders will ‘cap’ what they lend at 4-4.5 times your income. They do this for a few reasons - firstly, there’s restrictions set by the Bank of England designed to prevent lenders from holding more than 15% of their mortgages at 4.5x or higher.

Secondly, there’s the risk involved. Loans at higher income multiples are riskier and, as you probably know, risk isn’t something that your lender is particularly keen on.

Is a mortgage always 5 times your salary?

No. The income multiple offered in a mortgages is typically between 4-6 times your annual salary. Most lenders draw the line at 4.5x income, some go up to x5 and a few to x6.

Can I get a mortgage for 5 times salary?

Possibly. It depends mostly upon your personal circumstances and the property you’re trying to buy.

Mortgage Calculator for 5 times salary

We’ve put together a handy calculator which will provide you with a rough idea of how much you could borrow. You only need to enter a few basic details to get going, and once you have your estimate, it could provide you with a better idea with regards to your property budget. 

Affordability Range (5x)

Once you’ve got your estimate, make an enquiry. The experts we work with can review your circumstances and find lenders using their whole-of-market access. We don’t charge a fee and there’s no obligation to make a purchase.

What determines whether a lender will offer a mortgage for five times your salary?

Here are some things that will determine whether a lender will make you the offer or not.

Your personal credit

This is possibly the biggest factor. A history of bad credit can seriously reduce the number of lenders willing to offer you a mortgage at 5x salary. You may need the help of a broker.

It’s also a particularly complex subject, so if you want to find out more take a look at our guide to bad credit mortgages or get in touch with one of the experts that we work with.

The size of your deposit / your loan to value (LTV)

The more money you can put down (and as a result, the lower your LTV), the better.  

If you want to find out about LTV in greater detail, take a look at our guide to mortgage deposits. 

The property itself

The construction and location of the property will also help to determine whether a lender will make you an offer. 

Regardless of your personal circumstances, deposit size and credit record, there are some lenders just won’t touch certain types of property with a barge pole. Alternatively, they might be willing to lend at a lower multiple - but won’t make an offer on a mortgage at 5 times income.

To find out more, take a look at our guide to non-standard construction mortgages.

Your income, and how you make it

Most lenders prefer customers on large PAYE salaries. If you earn money through self-employment, variable income such as bonuses, or draw dividends from your company - a lender will lump you in as ‘non-standard’ and things may become difficult.

Again, there are a lot of variables in this one, so take a look at our guide to mortgages for the self-employed if you want to find out more.

Other factors

Other factors the lender may consider include…

These will all be factored in to affordability, so even with a lender who goes up to 5 x income, by the time any committed expenditure has been taken into account, the amount the lender is willing to offer could be much less.

What about if it’s five times joint income?

The idea of a combined salary is simple enough. Say you make £40k a year, and your partner makes £40K a year, a lender would take your joint salary of £80k to make you an offer of £400,000. In theory, this is straightforward enough.

However, getting a joint mortgage isn’t always the best course of action, even if you’re on a combined salary. This is because the individual profiles of each applicant are also taken into account.

For example, if you have stellar credit and are eligible for a favourable deal on your own, but your partner has a recent history of bad credit or visa issues, you’re not likely to get a good offer from a lender, it’s likely that your partner’s ‘negatives’ will outweigh your ‘positives’. 

As a result, it can sometimes be harder to get a mortgage for 5 times your joint salary unless both of you have excellent credit. You may get a lower income multiple (such as an offer for 3x or 4x your joint salary). 

And, contrary to popular belief, you don’t have to get a joint mortgage if you’re married.

Who are the best 5 times salary mortgage lenders?

It’s hard to authoritatively say who the ‘best’ lenders are for 5x income mortgages. For a start, the market is always changing and since everyone’s circumstances are different, the lender that is best for you might not be best for someone else. 

Though there might not be one ‘best’ mortgage lender for everyone, a mortgage expert can help you to find the best 5x mortgage for you.

The advisors we work with will take your needs and circumstances into account and introduce you to the x5 salary lender best positioned to offer favourable rates to a borrower with your profile.

They will also offer bespoke advice and guidance every step of the way - make an enquiry to speak to one of these whole-of-market brokers on the phone today.

Speak to a 5 x salary mortgage expert today

If you have questions about 5x earnings mortgages (or more) and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry.

Then sit back and let us do all the hard work in finding the broker with the right expertise in helping people needing to stretch their income multiple slightly. We don’t charge a fee for introducing you and there’s absolutely no obligation or marks on your credit rating.

Updated: 27th August 2019
OnlineMortgageAdvisor 2019 ©

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.

Find out more about mortgage affordability

Mortgage Affordability