How To Get a Mortgage 6 Times Your Salary

In this article, we examine how to get a mortgage based on 6 times your salary. We also identify factors that affect maximum borrowing and which lenders may be happy to lend at this higher rate.

Can you get a mortgage based on 6 times your salary?

Yes, it’s possible, but it’s more difficult as providers view the loan as a higher risk. Additionally, the Bank of England currently caps the amount of mortgages that can be extended above a 4.5 multiplier to 15% of the total mortgages loaned.

The situations and circumstances where a lender will go above 4.5 times could be because:

• Your household income is high. Lenders considering applications for higher multiple mortgages often like to see a sizable household income. For example, Teachers Building Society offers over 5x mortgages but requires a minimum income of £200,000.

• You work in a certain profession: Some lenders see specific careers such as doctors and lawyers as more favourable due to the progression opportunities and high incomes. Some lenders reserve higher income multiples for people in these jobs.
• The lender uses other metrics to calculate final mortgage amounts. Some lenders assert that they do not have a maximum income multiple but instead use their own affordability assessment to determine the maximum loan amount. For example, Norton Home Loans weighs a household’s income against its expenditures to see how big a mortgage it can afford.

What about even higher income multiples?

Borrowing at a higher income multiple than six is rare. Just one mortgage company offers a mortgage based on a seven-times income multiple. However, the terms and conditions of this mortgage are very specific, limiting the number of eligible people.

High-net-worth mortgages are usually the only option and are suitable for those with an annual net income of at least £300,000 or assets worth £3 million or more. These agreements are more complex and often come with bespoke terms and conditions.

Calculate how much you can borrow.

If you think you are eligible for a higher loan multiple, it’s helpful to see how much you can borrow. Our affordability calculator can help you do so by inputting your income. It will display a calculation for six times the salary and 4.5 and 5 for comparison purposes.

Example calculations

As a rough guide, this table gives an idea of what you could potentially borrow on a 6 times multiple with varying household incomes:

How to borrow 6 times your salary

To maximise your borrowing chance, we can help you find a mortgage broker who can give you the best chance of getting your mortgage.

They will help with:

1. Download and identify any issues in your credit report. Lenders will look at your credit report, and a broker will help to identify any issues.
2. Work with you to understand your financial situation. Your broker will look at your income and how you’re paid and see if there is anything else that will help your application. Especially if you’re applying with a joint income, everything will be assessed to understand your borrowing potential.
3. Complete and submit your application. The last part will be where your broker will identify the most appropriate mortgage lender. They’ll complete all the necessary application forms and submit them for mortgage approval.

Other factors that affect maximum borrowing

Numerous factors will impact the likelihood of being able to borrow at the maximum income multiple.

They are:

• Outgoings: Providers are less likely to go to 6 times your salary if you have many outgoings. You will be at a higher risk of not sticking to your repayment schedule. School fees and car loans are prime examples of outgoings lenders will investigate for their affordability assessment.
• Profession: Many providers who lend at higher multiples will only do so to certain professions. Perhaps not surprisingly, those professions, like doctors or engineers, often earn a high annual salary. Plus, while some determine the maximum amount extended on a bespoke affordability model, others will only lend to those in
  • full-time employment,
  • have particular types of contracts as a consultant/contractor
  • draw self-employed income in specific ways
• Deposit: While the deposit amount will not directly affect your ability to borrow 6 times, you may find that if your LTV is not good enough, you’ll have access to fewer lenders. That may mean you are forced to accept a product with a higher interest rate, so you may need to borrow less – lowering your income multiple.
• Credit History: As with a deposit, your credit history does not directly affect your borrowing limits but may reduce who you can borrow from. So, again, you may be forced to borrow less if the products that are subsequently available to you are too expensive.

Which lenders are available?

The following lenders offer these higher 6x multiple products:

• Kensington Mortgages
• Hodge
• Teachers Building Society

The following lenders stipulate that they do not have a maximum income multiple:

• NatWest
• Together
• Central Trust Limited
• Penrith
• Market Harborough   Building Society
• Norton Home loans
• Newcastle Building Society
• Livemore

However, that does not mean they can or will go to 6 or above. It simply means they use another way to calculate the maximum amount they are willing to extend; therefore, that may equate to an income multiple even lower than the typical 4 times earnings.

Are there any downsides to using higher-income multiples?

While borrowing more may mean you can buy a bigger house, it does come with a number of disadvantages:

• Higher interest rates: These products can have a higher interest rate than a mortgage based on a lower income multiple. That makes the loan doubly expensive, as you are not only borrowing a larger amount but may also be paying far more interest on it.
• Affordability sensitivity: Just because you can borrow at a higher multiple doesn’t mean you should. Your lender will likely conduct an affordability assessment to determine whether you can repay a larger loan. However, that is largely determined by your current outgoings and expenditures, which could increase.

Plus, with a higher amount borrowed, you are far more sensitive to any future increases in interest rates, too, which might be something to bear in mind for those considered shorter-term fixed products or variable-rate mortgages.

• No schemes: Most of the time, if you need a higher multiple mortgages, you won’t be able to use any of the Help To Buy or government support schemes in the UK.

Get matched with a broker specialising in higher-income multiple deals

As mortgages based on 6 times earnings are not common, using a broker specialising in higher income multiples can be one of the best ways to maximise your chances of being approved.

Our network has mortgage advisors who can suggest the best provider for you and help you with every step of your application. Their invaluable knowledge can mean you can access the maximum mortgage amount you need while keeping the repayments as low as possible.

Our free, no-obligation broker matching service connects you with the best mortgage advisor who can offer advice given your circumstances. Call us today at 0330 818 7026 or make an enquiry so we can connect you with an expert.