Can I Get a Mortgage for 5 or 6 Times My Salary?

Is it possible to borrow more than five times your salary for a mortgage? The short answer is yes, you can get a five-times-salary mortgage. However, there are rules that mortgage lenders have to follow.

Amidst high interest rates and strong demand for property across the UK market, mortgage affordability is on the mind more than ever.

And it’s not just hard-pressed first-time buyers who need to maximise their borrowing potential.

Even mid-career professionals are finding they need to access mortgages at five or even six-times their annual income to afford property prices in the most popular residential areas of UK cities.

With all of this in mind, let's explore how you can potentially gain access to a five-times-salary mortgage, and what you can do to maximise the mortgage you can borrow.

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Key Takeaways

• It’s possible to borrow up to five or even six times your salary
• Lenders are only allowed to issue higher loan-to-income (LTI) mortgages to 15% of applicants per quarter
• These mortgages allow you to borrow five times your salary or more, but lenders prioritise specific categories, such as professionals with stable career prospects

What is a Five-Times-Salary Mortgage?

A five-times-salary mortgage allows you to borrow five-times your salary (or more) to purchase a residential property.

It is a particularly helpful type of mortgage for first-time buyers, or those looking to purchase property in popular cities like London, Brighton, Bristol, and regions such as the Southeast, where has become challenging to buy a property without a large deposit.

Mortgage lenders have an absolute limit set by the UK’s Financial Conduct Authority (FCA) on the number of mortgages they’re allowed to issue at more than 4.5 times an individual or joint income on a mortgage application.

The number of homeowner mortgages lenders can offer at a higher loan-to-income ratio (LTI) is capped at an average 15% per quarter.

This is the loophole that some lenders have been using to lend up to 6 times salary for some specific categories of mortgage borrowers – including first-time buyers.

Learn all about five-times-salary mortgage in our short explainer video: 

How to Access a 5-Times-Salary Mortgage or Higher

Given that lenders are limited to accept just 15% of mortgage applications with high LTI ratios, the best way to access a five-times-salary mortgage is by using a specialist mortgage broker.

At Clifton Private Finance, we provide a fully independent, whole-of-market service to help you find the right lender for your circumstances.

• We can find you a mortgage offer from several lenders at five times your salary if you earn at least £75,000. With a deposit of 25% (feasible for homeowners trading up in expensive housing areas).
• And a new lender on the market is now offering 6 times income mortgages for those earning £60k per year (or £50k per year for sole applications), with just a 5% deposit requirement.
• Other banks and building societies lend just below six times salary and require only a 10% deposit, giving you more options to choose from.
• Some first-time buyer products at five-times income are catered for specific qualified professionals such as accountants, lawyers, chartered surveyors, architects, dentists, doctors, vets and pilots, who are earning at least £40,000 a year.

The best lender for you depends on your annual income, occupation, deposit size, credit history and other factors. And the key is talking to a mortgage broker with access to all these products for a comparison on what's best for you.

For a fast-track to getting your best options, book a free telephone conversation with a mortgage adviser to help us understand your situation.

Case study: Our case study below details how we helped a Mauritian business owner secure a £400K UK mortgage.

How Many Times My Salary Can I Borrow?

Mortgage lenders used to calculate how much they would lend by a simple rule-of-thumb multiplication of an applicant’s income: 4 or 4.5 times salary was the limit.

So a first-time borrower earning £30,000 a year who could put down a 5% deposit could look for properties up to a maximum price ceiling of £142,000.

However, income hasn’t been the key lending criteria for banks and building societies for more than five years.

After a wholesale review of the mortgage industry by the FCA in 2014, banks and building societies were no longer allowed to look at the maximum a borrower could pay (by verifying salary and other sources of income).

Instead, they were obliged to conduct an in-depth assessment of how much each borrower could afford.

That’s why your lender (or your mortgage broker) now asks about all your regular financial commitments:

• Childcare costs
• School fees
• Utility bills
• Insurances
• Car costs
• Membership fees
• Credit commitments

Lenders need to be confident you can afford the mortgage commitment, both now and in the future.

Case study: Read our case study below on how we helped our save over £37K over their two-year fixed-rate mortgage.

Here's a snapshot of the best rates on the market currently (updated live), so you can see how the best rates currently look:

Are You Struggling to Get a Mortgage as a First-time Buyer?

Even with the 5% deposit scheme, most first-time buyers struggle to afford an average property in the UK with their deposit savings and income, simply due to the disproportionate rise of house prices compared to wages since the 1990s.

And while some first-time buyers turn to their parents for help with a deposit, many families don’t have the cash on hand to gift to them: their wealth is tied up in their own property or their pension.

The good news is that you can boost your mortgage budget with the help of your family, without needing a cash gift.

There are two other ways that family members can help with your mortgage.

1. Deposit Booster

We can use the equity your family member has accumulated in their property to get you a bigger deposit for your first house, without downsizing their home, drawing from their pension, or selling other assets to raise funds.

2. Income Booster

We can use their annual income on your mortgage application in a joint borrower, sole proprietor mortgage (JBSP). This means they can add their income to yours without needing to be named on the property deed or secure the mortgage against their own home.

Find the perfect mortgage

How Can I Maximise the Mortgage I Can Borrow?

You can make yourself eligible for borrowing higher amounts from the broadest range of lenders possible by preparing your mortgage application and improving your credit rating.

This will give you access to the best mortgage deals you could get, according to your circumstances.

1. Push for an Improvement in Your Employment Status

An improvement in your employment status will significantly improve your mortgage eligibility.

This typically happens in one of two ways:

• A transfer from a fixed-term or temporary contract to a permanent contract
• A pay rise

Most private-sector employers respond to employee pay increase requests rather than proactively reviewing salaries.

If you’ve been with your employer for at least a year and can provide evidence of your effectiveness, this is a reasonable request that you can’t be penalised for.

2. Prepare Your Mortgage Application

Start to assemble all the documentation for your mortgage application. This will include:

• Passport or driving licence (as proof of identity)
• Current utility bills (as proof of address)
• P60 form from your employer
• If you’re self-employed: statement of your accounts from an accountant for the past two to three years
• If you’re self-employed or have earnings from more than one source: tax form SA302 from HMRC
• Current account bank statements for the three months immediately previous

In addition to these documents, highlight any changes you need to make over the next 12 months to improve your mortgageability.

For example, it's worth looking at the regular or recurring payments on your bank accounts. Multiple store credit card accounts and payments to betting websites or bookmakers can be a red flag to potential lenders.

3. Improve Your Credit Rating

Take action to improve your credit score and give yourself access to the broadest number of possible lenders for your circumstances.

The stronger your credit rating becomes, the better chance you have to access higher LTI mortgage offers at the best rates.

• Unforeseen problems with your credit rating wastes time on applications that are refused further down the line
• Subsequent mortgage lenders will be able to see previous credit checks and will be deterred by rejected applications

Check Your Credit Score

Not all lenders report credit details to all three of the UK credit agencies, so you need to check all three:

• Equifax 
• Experian 
• TransUnion (previously CallCredit)

Checking your credit score yourself doesn’t affect your rating.

Fix Any Credit Rating Problems

• Update any incorrect old addresses related to bank accounts, etc.
• Challenge any accounts which you believed you had closed but which are still presenting monthly direct debit requests which are being refused (mobile phone companies/broadband suppliers are particular culprits)
• Get notice of disassociation from anyone you used to be associated with financially (an ex-partner or flatmate) who may have a poor credit rating

Be Proactive

• Avoid making any new applications for additional credit (any hire purchase, store credit cards, or online credit)
• If you’re cancelling any regular service that you pay for by direct debit, keep a record of your service cancellation but leave the direct debit until the service provider cancels it and refunds any payments.
• Take out a joint credit card with someone who trusts you and has a strong credit rating (such as a parent). Their credit rating will be "shared" with you.

Find the perfect mortgage

What Else Can You Do to Improve Your Mortgage Offer?

Improving your mortgage offer is not only about increasing the amount you can borrow. Other aspects to consider include:

• The interest rate
• The size of your monthly repayments
• The type of mortgage product (fixed vs variable, for example)

You can improve the long-term affordability of your mortgage in a couple of ways.

1. Apply for a Longer Mortgage Term

You may not get a larger loan offer, but you could substantially reduce your monthly payments.

Affordability is usually calculated over a standard 25-year mortgage term. If you apply for a 30 or 35-year term, your monthly repayments will be lower. However, the overall cost of interest that you’ll be paying over the mortgage term will be significantly higher.

2. Use a Mortgage Broker

Individual lenders can only provide information about their own mortgage products.

Finding out about alternative products and offers that might be available from any of the 300+ mortgage lenders in the UK is difficult and time-consuming - and many of them can’t be contacted directly by potential borrowers.

A well-connected mortgage broker will know about the full range of mortgages available across the market and can advise on high LTI mortgages, for example on a five-times or even six-times-salary basis.

They’ll be able to propose the lenders who will look most favourably on your particular circumstances and will “package” your application to demonstrate your suitability for their lending criteria.

The result can be a more generous mortgage offer, a cheaper borrowing rate, or a variation in the terms (such as a shorter initial period with early repayment charges), which will better suit your circumstances.

We have the product information you need across the mortgage market, and we’ll get you the best mortgage offer that could be available to you.

To see what we can do for you, call us at 0117 959 5094 or book a free consultation below. 

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