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Can I get a 5.5 times salary mortgage?

It is possible to get a 5.5 times salary mortgage which can give you the extra money that you need to borrow for the house you want to buy. There are a number of things that you need to know about 5.5 times salary mortgages and it might not work for everyone.

In this guide, our team of mortgage experts explains how 5.5 times salary mortgages work and the main criteria for this type of borrowing. There are also some risk factors that need to be considered with this level of mortgage debt and it might not be right for you.

Mortgage lenders use ‘income multiples’ to assess your affordability for a particular loan amount when you apply for a new mortgage or a re-mortgage. Some lenders have reacted to the recent increases in house prices and the fact that income levels have not increased at the same rate, by offering higher income multiples. You might now be eligible to apply for a 5.5 times salary mortgage.

Your mortgage to income ratio means that you pay more towards your mortgage repayments each month and ultimately have less disposable income. Typically, the ratio for mortgage repayments in the UK currently is 25% to 28%, with some borrowers putting as much as 35% of their gross income towards mortgage repayments.

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60-Second Summary – 5.5 times salary mortgages UK

Typically, mortgage lenders offer borrowers up to 4.5 to 5.0 times their salary when they calculate how much you can lend. This is considered to be the maximum amount that most mortgage borrowers could afford to spend on their mortgage repayments without causing themselves additional financial pressure.

5.5 times salary mortgages can allow some high income and professionals to borrow more which can increase their house buying budgets.

  • Mortgage lenders have recently started to offer 5.5 times salary mortgage deals to borrowers in the UK to help to keep the housing market moving and buoyant.
  • 5.5 times salary mortgages can allow certain groups of property buyers to increase their budgets to be able to afford higher value houses to counteract the inflated property prices and lower wages.
  • Criteria for 5.5 times salary mortgages means that usually only first time buyers are eligible for this level of borrowing and only with a higher deposit (e.g. over 15%).
  • Mortgage borrowers with higher incomes and professionals are usually the only types of people that would be eligible to apply for 5.5 times salary mortgages.

In simple terms, a 5.5 times salary mortgage is where your gross annual salary is multiplied by 5.5 times which then represents how much you can borrow (e.g. £50,000 x 5.5 = £275,000). Obviously, it’s not as simple as that and there are lots of different factors that would apply to this calculation, but this is how it works in very basic terms.

Most mortgage lenders will allow borrowing limits up to 4.5 or 5.0 times your salary, so if you think about someone who earns £50,000, they could potentially borrow an additional £50,000 (up to £275,000) compared to 4.5 times salary mortgages.

Some lenders have higher ‘income multiples’ than others and each lender has its own affordability criteria that they work to. This is down to the lenders attitude to risk and its appetite for lending to new and existing customers. The best lender for each person will be different, depending on your:

There are now some lenders that will apply as much as 5.5 times salary mortgage multiples, which may offer you a higher loan amount to increase your property budget.

An income multiple will give you a good idea and a guide for how much you will be able to borrow when buying a home or for remortgaging.

It doesn’t necessarily mean that you can simply multiply your annual salary by 5.5 times and that’s how much money you can borrow. There are lots of other factors that need to be taken in to consideration for a mortgage lenders affordability calculation.

5.5 times salary mortgages is currently one of the highest income multiples that is available, and it’s only available through a handful of lenders. There is also very strict and specific criteria for which types of borrowers can apply for this type of mortgage.

It is possible for mortgage borrowers to now apply for 5.5 times salary mortgages with a small group of mortgage lenders. Typically, there are three main criteria for borrowing up to 5.5 times your salary, including how much you earn, your occupation type, and your deposit.

Types of borrowers for 5.5 times salary mortgages:

These criteria means that the risks to the mortgage lender for mortgage defaults are effectively significantly lower. Most lenders will want some security that the loan is low risk and that the borrower can afford to make repayments now and in the future.

Mortgage lenders are constantly having to update and change their lending criteria to adapt to the economic climate and the housing market. In this instance, lenders have had to react to the housing market which has seen consistent growth in prices over the past several years, and the fact that wages have not increased at the same rate for many.

Borrowers were simply not able to afford properties that they needed for their families and lifestyle, due the constantly increasing house prices. This is especially true for First Time Buyers, who are now looking at an average property price of £288,000* in the UK in 2023 (previously £190,000 in 2015).

It can be more difficult for self-employed borrowers to get approved for 5.5 times salary mortgages and it’s not anything against people who are self-employed. It is simply the fact that if you’re self-employed then your income is likely to be more complicated and have a number of different elements to employed people.

One if the big sacrifices that self-employed people make is having a bigger gross annual income and being able to show enough income for mortgage purposes. Most people who are self-employed tend to present their income for tax purposes which means that they don’t usually show the same levels of income as employed people.

It’s pretty common for self-employed mortgage applications to be more complicated and for borrowers to have less choice for their mortgages.

Applying for a joint mortgage (multiple applicants) means that your annual income will be combined and affordability is assessed on both borrowers. Effectively, you can apply for a higher loan with a joint mortgage for a couple or two people who will be living together in the property.

A typical income multiple for a joint mortgage currently is between 4 and 4.5 times your combined incomes. This tends to be slightly lower than a single mortgage income multiple, simply because there are other risk factors with joint income lending.

There are some lenders who may apply higher income multiples to joint applications, which can be as much as 5.5 times salary joint mortgage borrowing. Obviously, this is going to be more limited than the choice of lenders who offer 5.5 times mortgages to sole applicants.

Our qualified mortgage experts know which lenders may apply higher income multiples and offer higher loan amounts.

There are several key elements to consider when you think about whether you would be able to apply for a 5.5 times salary mortgage. Below, are the Top 3 Tips for getting approved for this type of mortgage application.

  1. Get expert advice from a qualified mortgage advisor will give you the best chance of getting your 5.5 times salary mortgage approved. There are only a limited number of lenders that offer these mortgages, so you are unlikely to be able to get these deals yourself without proper expert advice.
  2. Submit an application via your mortgage broker will then go through the lenders underwriting process. Once your application has been assessed properly, you will then know exactly how much you can borrow and what you can afford.
  3. Provide evidence and supporting documentation to the lender will require supporting documentation and evidence for your income. This will usually be wage slips, bank statements, company accounts, or SA302’s. The type of income that you have will determine which type of evidence is required.

Find out more about how to evidence your income with an SA302 (self-assessment tax return) in our helpful guide.

Firstly, don’t be fooled in to thinking that you’ll be able to actually borrow the full amount of 5.5 times your annual salary. There are lots of factors that will be taken in to account with your mortgage affordability calculations which will include all of your normal outgoings (e.g. bills, utilities, loans, credit cards, childcare costs and other typical outgoings).

Below, we’ve created a table that shows the maximum mortgage borrowing for each of the main income multiple groups for most mortgage lenders. You can see from the table that there’s a big difference between traditional 4 times salary mortgages and 5.5 times salary mortgages.

These examples shown below are just for guide purposes only and figures will vary depending on your own financial circumstances and the lender criteria.

Annual income4 times salary mortgage4.5 times salary mortgage5 times salary mortgage5.5 times salary mortgage
£30,000£120,000£135,000£150,000£165,000
£50,000£200,000£225,000£250,000£275,000
£70,000£280,000£315,000£350,000£385,000
£90,000£360,000£405,000£450,000£495,000
£110,000£440,000£495,000£550,000£605,000
£130,000£520,000£585,000£650,000£715,000

As we’ve explained above, these are the maximum loan figures and you shouldn’t expect to be able to borrow this amount from your income.

One of the main stipulations for a 5.5 times salary mortgage is that you need a reasonably big deposit, usually at least 15% with most mortgage lenders. This means that the maximum Loan-to-Value (LTV) for these loans is 85% which means that you will need to be able to put at least 15% of the value of the property down in cash.

Most mortgage lenders would be more comfortable and more inclined to lend to borrowers with even bigger deposits, usually 20% or more. This is where it can be most difficult to be eligible for 5.5 times salary mortgages, because this can be a problem for many borrowers and especially First Time Buyers.

Mortgage lenders constantly change their lending criteria and especially in a volatile housing market or economic climate. There are often several lenders that will offer 5.5 times salary mortgages, but usually there are three or four mainstream lenders in this group.

Lenders that offer 5.5 times salary mortgages:

Barclays logo
Halifax logo
Santander logo

There are also some lenders who have an individual mortgage assessment, which means that they assess mortgage applications on a case by case basis. These mortgage lenders include Natwest and Together Mortgages, but this is not specifically a 5.5 times salary mortgage.

Mortgage lenders all have their own lending criteria and each mortgage deal has its own rules as well. It is likely that the rules for a 5.5 times salary mortgage will be more strict than lower income multiple mortgages.

A 5.5 times salary mortgage application will go through the same underwriting process as any other mortgage application. Including:

  • Outgoing expenses and debts: lower amounts of monthly expenses paired with no or little debt will usually be preferred by lenders for this type of mortgage.
  • Your occupation: A higher earning or highly qualified professional will be more likely to be approved by lenders for high income multiple mortgage.
  • Credit score/history: A good credit score and credit profile is best when applying for this type of mortgage. It can still be possible to get a 5.5 times salary mortgage with a poor credit history but it is best to speak to an expert advisor in this instance.
  • Amount of deposit: Most lenders will expect a deposit of at least 10% but you may be more likely to be approved for the mortgage you want if you have saved a larger deposit amount.

It is unlikely that you will be able to get a 5.5 times salary mortgage with any bad credit or any credit problems. This usually means that you can’t have any missed payments, defaults, or CCJ’s on your credit report.

There are also a number of things that you can do to improve your chances of being approved for a 5.5 times salary mortgage. This applies to most mortgage applications, but it can be even more important for this type of mortgage deal.

  1. Get advice from mortgage broker with a good panel: a mortgage broker usually has a panel of mortgage lenders that they deal with and good mortgage brokers will have more than 50 lenders on their panel. Mortgage brokers with bigger panels of lenders will usually have a bigger chance of having access to these deals.
  2. Increase your credit score: borrowers with better and higher credit scores are more likely to be considered to be a better bet for more risky mortgage deals like these. It is unlikely that someone with a lower credit score will be able to apply for a 5.5 times salary mortgage.
  3. Increase your deposit: 5.5 times mortgages will usually only allow borrowers to apply with at least a 15% deposit as a minimum. You are more likely to get approved for these deals with a 20% deposit or more.
  4. Pay off debts: borrowers with little or no outstanding debts are more likely to be approved for these deals than someone with lots of credit payments every month. This can include loans, interest free credit, credit cards, store cards and PayPal credit.

The best way to find the perfect mortgage deal and rates for your needs is to consult a mortgage expert. As specialist independent brokers, we have years of experience in helping buyers find great mortgage rates. We have expertise in a range of mortgages from first time buyer, buy to let mortgages and many more.

We specialise in helping borrowers wishing to take out a mortgage that is higher than the typical income range. Our team are able to offer expert advice in this area and help you every step of the way through the process as you apply for a mortgage with high income multiples.

Essential Mortgages is authorised and regulated by the financial conduct authority, which means our team are expertly qualified to advise you on how to find the best mortgage deal for less.

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How do mortgages work?

A mortgage is a financial agreement between a mortgage borrower and a mortgage lender, commonly a Bank or a Building Society. When you take out a mortgage, you are borrowing money which you have agreed to pay back within a set number of years (your mortgage term).

The way that you repay your mortgage will depend on the type of mortgage that you choose:

  • Repayment mortgage: You will repay your outstanding mortgage balance plus any interest in regular instalments (usually monthly).
  • Interest-only mortgage: You will only repay the interest for your mortgage during your mortgage term, and you will repay the full loan amount at the end of your mortgage.
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What is the UK mortgage rate today?

Currently, the Bank of England Base Rate (BBR) is 5.25% and it has been since August 2023. Most mortgage lenders will base their Standard Variable Rates on the UK’s base rate of interest, and these rates will usually be around 2% to 4% higher than the Bank of England rate.

Will mortgage rates go down in 2024 in the UK?

Mortgage rates in the UK are based on the Bank of England Base Rate (BBR), as well as other factors like inflation and any major economic events. Inflation has dropped to 2.3% in April 2024, and the Bank of England Base Rate has held steady at 5.25%.

This is promising news which could indicate the potential for lenders to reduce mortgage rates towards the end of 2024. While mortgage rates could drop, it is unlikely that they would fall anywhere below 4% until at least 2025/26. This is due to economic predictions that the Bank of England Base rate will remain at 3.5% or higher until mid-2025.

Should I fix for 2 or 5 years?

When applying for a fixed rate mortgage, you have the option of ‘fixing’ your interest rate for a set number of years. Common options for fixed rate mortgage terms include 2 years, 3 years, 5 years, and 10 years. The ‘right’ number of years to fix your mortgage for will be based on your situation and the level of flexibility that you need from your mortgage.

2-year fixed rate mortgages can provide more flexibility, allowing you to easily switch to a new deal if a better rate becomes available within the next 2 years. 5-year fixed-rate mortgages can provide more financial security, especially if average interest rates in the UK increase dramatically.

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