Can I borrow 5.5 times my salary for a mortgage?

Caz Blake-Symes • February 14, 2022

Most mortgage calculations are based on a factor of 4.5 times gross annual salary when calculating how much an individual or joint applicant can borrow.

However, as a fully independent, whole-of-market Mortgage Broker, we have access to specialised software that will give a choice of lenders and how much they are willing to lend based upon a clients’ specific circumstances. For example, in some circumstances where potential borrowers have a 10% deposit and an employed income meeting the lender’s criteria that factor could be as much as 5.5 times the applicant’s gross annual salary.

As well as Bristol Mortgages Online being able to access this software, there are lenders who will lend employed First-time buyers with 10% deposit 5.5 times salary, enabling homeownership for many people who have been frozen out of the market. So, subject to meeting the usual checks and affordability requirements, the maximum sum a buyer earning £50,000 can borrow will rise from £225,000 to £275,000. However, the larger loans will not be available to self-employed applicants.

There are also lenders who are not available online or on the High Street, that only use intermediaries like us who can also offer 5.5 times salary. Sometimes this will only apply to first-time buyers who are borrowing 90% or less of the property price and are taking out a five- or 10-year fixed-rate mortgage.

As for any application, regardless of amount or deposit, lenders are obliged to check that borrowers can afford the monthly repayments on a rate higher than the standard variable rate they offer, rather than the mortgage rate that is being signed up for. Therefore, we will always give the best advice to find the product that best suits not only your current circumstances but considers possible future changes.

Henry Jordan, the director of mortgages at Nationwide, said: “In the UK there are nearly 5m private rented households, but many of these renters have dreams and aspirations of buying a home of their own. However, with household incomes rising at a slower rate than house prices, many first-time buyers are finding it increasingly hard to get on to the property ladder


Is this a good idea for everyone?

Many potential borrowers will not be eligible for this type of mortgage based on size of deposit, income, employment status as self-employed are excluded from many of these offers. You should think long and hard about your future earnings and job security before taking out a mortgage at up to 5.5 times your salary. The larger the loan, the longer it will take to pay off. You may also increase the risk of failing to make repayments, potentially costing you your home. A variable-rate mortgage may be especially risky, as the lender could increase their rates at any time. So, make sure you could comfortably afford to a jump in your monthly repayments. It’s also worth considering how these deals stack up on interest – you may find better rates on deals offering you a smaller loan.


Regardless of your circumstances, we can provide you with a tailor-made quotation package of exactly what you can borrow, what mortgage deals are best suited to your specific requirements and how to obtain your chosen mortgage.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.


Contact Us

For further details about the service we offer as a fully independent mortgage brokers or any other mortgage information book your FREE CONSULTATION with one of our expert Mortgage Advisers, please contact us

Bristol Mortgages Online             www.bristolmortgagesonline.com        Tel 0117 325 1511

Bath Mortgages Online                www.bathmortgagesonline.com           Tel 01225 584 888

Exeter Mortgages Online             www.exetermortgagesonline.com        Tel 01392 690 888

      Email info@swmortgages.com


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