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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Boost to buying power from changes to affordability tests

By Caz Blake-Symes • May 1, 2025
Adapted from Zoopla’s April 2025 Housing report I mage: The analysis uses average house prices from the house price index and for first-time buyers to assess mortgage payments at different mortgage rates applied to a 30- year mortgage, at different loan-to-values. One emerging trend that we expect to positively support market activity in the coming months is a relaxation in how lenders assess the affordability of new mortgages. While buyers focus on the mortgage rate they will pay, lenders also check whether the borrower can afford a 'stressed mortgage rate' at a higher level than the borrower will pay. ​ While the average 5-year fixed rate mortgage is around 4.5% today, many lenders are currently 'stress testing' affordability at 8-9%. This makes it harder to secure a mortgage without a large deposit. If average mortgage stress rates were to return to pre-2022 levels of 6.5% to 7%, this would deliver a 15-20% boost to buying power. ​ An average first-time buyer with mortgage repayments of £1,020pcm at a 4.5% mortgage rate would typically have to prove they could afford monthly repayments of £1,550pcm at an 8.5% stress rate. If the stress testing is relaxed to 6.5%, repayments would fall to £1,275pcm, boosting buying power. It's a similar pattern for the average homeowner, while the actual impact will vary by lender and type of borrower. ​ This change would consequently supporting demand and sales volumes, helping to clear the stock of homes for sale, rather than boosting house prices. Other existing rules and regulations that remain in place will continue to impact the availability of mortgage finance.  Comment from Phil Clark “This is potentially very exciting news and will give borrowers a greater choice of products if these rules are relaxed. Regardless of whether you are a First-time Buyer, Looking to move, remortgage or invest in property, there are a huge range of competitive mortgage deals on the market. I will be delighted to discuss your specific requirements and offer you the most suitable deal!” Please call Phil on 0117 3251511 or email info@swmortgages.com For more information about the Mortgage and Protection products we offer, please visit www.bristolmortgagesonline.com Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

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By Caz Blake-Symes • February 19, 2025
Adapted from BBC Article by Kevin Peachey, Cost of living correspondent 13 February 2025 Two major lenders launched mortgage deals on Thursday with interest rates of less than 4%, as competition picks up in the sector. The prospect of further cuts in the base rate by the Bank of England has given mortgage providers confidence to reduce their own rates. But the attention-grabbing sub-4% deals by Santander and Barclays will not be available to all borrowers, particularly first-time buyers, and may come with a hefty fee. The return of such deals might prompt other lenders to follow suit after a period of tepid competition. Nationwide, the UK's biggest building society, has said it will reduce some of its rates on Friday. Mortgage deals with interest rates below 4% have not been seen since November. Across the whole market the average rate on a two-year fixed deal is 5.48%. The typical rate on five-year deals is 5.29%, according to latest figures from Moneyfacts. Time to decide Some tracker and variable rate mortgages move fairly closely in line with the Bank's base rate, which was cut to 4.5% a week ago. However, more than eight in 10 mortgage customers have fixed-rate deals. The interest rate on this kind of mortgage does not change until the deal expires, usually after two or five years, and a new one is chosen to replace it. About 800,000 fixed-rate mortgages, currently with an interest rate of 3% or below, are expected to expire every year, on average, until the end of 2027. That means a higher monthly bill for many homeowners on their next renewal, but there are signs that the rate they could pay is on its way down.  Bank of England governor Andrew Bailey said the interest-rate setting committee expected to be able to cut rates further "but we will have to judge meeting by meeting, how far and how fast". This will affect savers who are seeing lower returns, but could bring better news for borrowers. The Bank's next rates decision is on 20 March. Message from Phil Clark “Regardless of whether you are a First-time Buyer, Looking to move, remortgage or invest in property, there are a huge range of competitive mortgage deals on the market. I will be delighted to discuss your specific requirements and offer you the most suitable deal!” Please call Phil on 0117 3251511 or email info@swmortgages.com For more information about Mortgage and Protection please visit www.bristolmortgagesonline.com
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