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SPECIALISTS IN HELPING BORROWERS TAKE OUT A MORTGAGE THAT IS HIGHER THAN THE TYPICAL INCOME RANGE.

5.5 times salary mortgage

Lenders use a thing called an ‘income multiple’ to assess your affordability for a particular loan amount. Some lenders have reacted to the 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 able to get a 5.5 times salary mortgage.

Some lenders have higher income multiples than others and each lender has its own affordability criteria that they work to. The best lender for each person will be different, depending on your:

  • Type of income (e.g. salary (PAYE), dividend, and other income)
  • Source of income
  • Levels of income
  • Regular expenditure
  • Monthly outgoings
  • Debts (e.g. Loans, Credit Cards, Store Cards, and other credit commitments)

There are some lenders that will apply a 5.5 times salary mortgage rule which may offer you a higher loan amount.

About 5.5 times salary mortgages

An income multiple will enable you to get a good idea of how much you will be able to borrow when buying a home or remortgaging.

This does not necessarily mean that you can simply multiply your annual salary by 5.5 times to get your maximum loan amount. There are lots of other variables that need to be taken in to consideration when lenders are assessing affordability.

A 5.5 times salary mortgage is one of the highest income multiples that is currently available, and it’s only available through a handful of lenders.

Can I get a 5.5 times salary mortgage?

Yes, it is sometimes possible to get a 5.5 times salary mortgage with a select group of mortgage lenders. Generally the common maximum income multiple that is used by most lenders is 5 times your salary.

The most common reasons why you’ll be able to get a 5.5 times salary mortgage are:

  • High income (e.g. above £60,000 per year)
  • Professionals (e.g. doctor, dentist, lawyer, solicitor, pilot etc.)
  • Business owners

Effectively, people that are classed as lower risk or jobs that are likely to have significant pay increases.

Can I get a 5.5 times salary joint mortgage?

Applying for a joint mortgage (multiple applicants) means that your annual income will be combined to assess your affordability. This means often you can get a mortgage for a far higher amount than if applying alone, with the added bonus of an additional person to split the repayments on your mortgage with.

A standard income multiple for a joint application will be between 4 and 4.5 times salary mortgage.

There are also some lenders that will apply higher income multiples to joint applications, so potentially 5.5 times salary joint mortgages. You may find that some of these lenders may apply a higher income multiple and allow you to borrow more.

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

How can I borrow 5.5 times my income on a mortgage?

There are a few simple steps to follow for you to get a your 5.5 times salary mortgage.

1)   Get expert advice from a qualified mortgage advisor will give you the best chance of getting your mortgage at 5.5 times your salary. There are only a select few lenders that offer these types of mortgage, so you are unlikely to be able to get these deals yourself without 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.

How does a 5.5 times salary mortgage work?

We’ve created a table of examples to show roughly how income multiples work and how a 5.5 times salary mortgage is different to other income multiples.

These examples shown below are just for guide purposes only and figures may vary upon application.

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£400,000£445,000
£110,000£440,000£495,000£450,000£605,000
£130,000£520,000£585,000£500,000£565,000

You should also consider that your outgoings will be factored in to any affordability calculations so these figures can be very different to the ultimate maximum loan amounts.

Which lenders offer 5.5 times salary mortgages?

There are a select few lenders that currently offer 5.5 times salary mortgages and these can change regularly. It’s always worth getting expert advice from a qualified mortgage advisor, especially if you have very specific needs.

Some of these lenders include:

  • Barclays
  • Halifax
  • Santander

There are also some other lenders who have an individual mortgage assessment which means that each case is assessed based on its own merit. These lenders include Natwest and Together Mortgages, but these can also vary significantly.

Mortgage approval factors for 5.5 times salary mortgages

Every lender has their own lending criteria and affordability rules, which will all be taken into consideration when they assess an application.

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.

Mortgage brokers for 5.5 times salary mortgages

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.

Useful resources

The Guardian – Supersize mortgages: can you get one and what are the dangers?

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