Expert Knowledge & Professional Service

Barclays providing 5.5 times salary mortgage offer to borrowers earning over £75,000

Barclays is providing 5.5 times salary mortgages to new and existing Premier and Barclays Wealth customers. 

Initially, the enhanced income multiple was due to end last year, although it has been extended with no set expiry date. 

The bank has raised the maximum income multiple for applications from 5 times salary to 5.5 times salary for all residential capital repayment mortgages.

Interest-only applications will not be considered, although the lender will potentially offer a 35-year repayment term to a maximum age of 70. This should lower the monthly costs.

If you do not have a Premier account, Trinity can arrange for a personal banker to contact you and open an account prior to the application being submitted. One applicant will need an annual income of £75,000 to qualify. If one applicant does not earn £75,000 you will need a joint income of £100,000 to qualify. You can also have £100,000 saved or invested with the bank. 

Our brokers also have access to a specific broker-only team regularly providing impressively fast mortgage offers.

Aaron Strutt, product manager at Trinity Financial, says: “Barclays 5.5 times salary mortgage offer has been popular with our clients, particularly as most high-street banks and building societies will lend between four and five times salary. They do not regularly offer mortgages over five times income. 

“Trinty has access to another lender offering up to 5.5 times salary mortgages providing clients earn over £80,000 - either individually or as part of a joint application. The lender has great rates and you do not need to open a premier account to qualify. The maximum loan is £500,000.”

To secure a 5.5 times salary mortgage call Trinity Financial on 020 7016 0790.

Mortgage offers and decisions in principle

For many borrowers it is important to secure a 'decision in principle' or an 'agreement in principle' before they make an offer to purchase a property.

A decision in principle (DIP) or agreement in principle (AIP) provides a good indication to the client (and increasing the estate agent) they would qualify for a mortgage. However, it is not a mortgage offer and does not provide a guarantee of lending.

Initial agreements require a minimal amount of information, and the lenders use mortgage underwriters and property valuers to ensure the applicants and their properties meet their acceptance criteria.  

The agreement is typically valid for three months.  

What is a mortgage offer?

Once your offer to buy the property is accepted, you have passed the decision in principle and your application has been submitted, the lender will assess the case. When the lender is happy, and the property has been confirmed as sufficient security you will be provided with a mortgage offer.  

Mortgage offers typically last between three and six months. Although, some lenders have specific completion deadlines and set product dates. It is also worth noting, purchase and remortgage offers can be valid for different time periods.

Santander, HSBC and Yorkshire Building Society all provide six-month offer deadlines for purchases and remortgages. Halifax mortgages are set to the product expiry date.

What happens if the mortgage offer expires?

If your mortgage offer expires and you need to get it extended, the lender is likely to re-assess your application and potentially carry out a new credit score and another affordability assessment.  It may also carry out an updated property valuation.

Once your offer has been produced, it is not advisable to take out new credit cards or loans. If the lender checks you again and you have more debt or you've been declined for credit, it may affect the application. 

Trinity can help you secure a decision in principle

If you approach some of the high street banks and building societies, you can wait weeks for an appointment with an adviser. While some appointments can also take hours to complete.

If you call one of our brokers and provide us with the list of documents we require, if you are in a hurry we can secure a decision in principle on the same day.

Aaron Strutt, product director at Trinity Financial, says: “Most mortgage lenders are offering their lowest ever rates and if you approach one bank, it's advisers will not check the market and tell you if there are any cheaper or more suitable mortgages available to you.”

To secure a 'decision in principle' call Trinity Financial on 020 7016 0790.

NatWest lowers minimum interest-only income mortgage requirement to £75,000

NatWest for Intermediaries has lowered the minimum income requirement borrowers need to qualify for its interest-only mortgages.

Following a host of criteria changes, the bank has reduced to £75,000 the minimum basic income at least one applicant requires - down from £100,000. 

If the applicants plan to use the sale of the property as a mortgage repayment vehicle, the maximum loan-to-value remains at 75%. The interest-only element cannot exceed 50% of the property value with the remaining 25% on a full capital repayment basis.

Where there is an element of interest-only, there must be a minimum of £200,000 equity in the property at the end of the mortgage term when the capital repayment element has been repaid.

NatWest’s interest-only mortgages are available to all borrowers meeting the minimum requirements including first-time buyers and those remortgaging.

Aaron Strutt, product director at Trinity Financial, says: “If you are looking for an interest-only mortgage there is a wide selection of lenders to choose from, although some of the lenders have tougher criteria than others.

“Santander has relaxed its interest-only policy by removing its minimum income requirement and it raising the maximum age from 65 to 70. If the sale of the property is being used as a repayment vehicle, there needs to be a minimum of £150,000 amount of equity at the end of the mortgage term.”

To secure an interest-only mortgage call Trinity Financial on 020 7016 0790.

Accord Mortgages - part of the Yorkshire Building Society - offering five times salary mortgages if you earn £70,000

Accord Mortgages has amended its maximum income multiple to five times salary for single and joint applicants earning at least £70,000 each year.

Accord is the broker lending arm of the Yorkshire Building Society, and it will potentially provide five times income mortgages up to £500,000 to borrowers with a five per cent deposit. Applicants will need a 15% deposit to access £500,000+ mortgages at five times salary.

If you and your partner earn £50,000 each, the building society could lend you up to £500,000 providing you have a five percent deposit. For joint applicants earning £30,000 each, the maximum loan size reduces to 4.5 times salary and a mortgage of just under £270,000. These figures are based on a 25-year term, no dependents and minimal credit commitments. 

Aaron Strutt, product director at Trinity Financial, says: “Accord offers a range of competitively priced rates and a selection of offset mortgages available to first-time buyers. Some of the other lenders are offering larger income multiples for mortgages over £500,000, although not many of them are as generous as Accord.

“Affordability is a big issue when it comes to calculating the maximum loan size and Accord will not deduct pension contributions, season ticket loans, share save schemes or debts to be repaid. The society will lower the maximum loan for childcare and school fees, ground rents and service charges, debts to remain, student loans and overdrafts.”

Accord previously offered over five-times salary mortgages, although the loan size was limited to £500,000. 

For help to secure a five times salary mortgage, call Trinity Financial on 020 7016 0790.

HSBC for Intermediaries 0.99% tracker available for mortgages between £10,000 and £5 million

HSBC for Intermediaries is offering an incredibly low 0.99% tracker rate for mortgages between £10,000 and £5 million. It tracks the Bank of England base rate plus a margin of 0.74%. 

At the end of the two-year tracker period, the mortgage reverts to the bank’s 3.69% standard variable rate. The overall cost for comparison is 3.31% APRC representative.

HSBC’s 0.99% rate has a £999 arrangement fee, and applicants will need a 40% deposit to qualify. There are no any early repayment charges, so it is possible to lock into a fixed rate when the Bank of England base rate when it finally starts to rise.

Aaron Strutt, product director at Trinity Financial, says: “Any sub-1% mortgage offers incredible value for money especially if you are looking for a larger mortgage loan. It is unusal to see such a low rate available for million-plus loans.

“Trinity’s brokers have access to one of HSBC’s dedicated business development managers, and they are on hand to ensure applications are agreed and go through as smoothly as possible.”

Representative example: A mortgage of £250,000 payable over 25 years, initially on a tracker rate for two years at 0.99% and then on a variable rate of 3.74% for the remaining 23 years, would require 24 monthly repayments of £941.05 followed by 276 monthly repayments of £1,249.41. The total amount repayable would be £369,027.36 made up of the loan amount, plus interest (£117,422.36) and fees of £999. The overall cost for comparison is 3.33% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

To secure a low mortgage rate call Trinity Financial on 020 7016 0790.

Nationwide scrap free legal service for remortgages and increase cashback to £500

Nationwide Building Society has stopped providing a free legals service for its remortgage customers, preferring to increase its cashback incentive from £250 to £500.

Some conveyancers have been particularly busy with applications passed to them by the largest banks and building societies and there have been delays getting them through. As a result, Nationwide has has acted to withdraw the free legals option.

Most of the lenders provide free legals or £250 cashback when you remortgage to them, so Nationwide's £500 cashback offering is generous.

If you are in a rush to complete your remortgage and you can find a conveyancor offering low fees to complete the legal work, there is a chance you will have some cashback left over.

Trinity Financial regularly introduces clients to Premier Property Lawyers and they typically charge £300 to complete the remortgage work for freehold properties.

For help to remortgage to a new lender call Trinity Financial on 020 7016 0790.

HSBC launching new mortgage submission system for brokers

HSBC is launching a new and significantly improved platform to enable selected brokers to submit mortgage applications.

The platform will completely replace the bank's current system and ensure certain brokers get faster lending decisions without impacting credit scores.

Aaron Strutt, product director at Trinity Financial, says: “More of the lenders are investing in systems and trying to improve the technology behind automation and artificial intelligence.

“Banks and building societies are looking at ways to make it easier to get mortgages through, potentially reducing risk and cutting down on human intervention where possible.”

HSBC is offering some of the most competitively priced mortgage rates in the market, and the bank is one of Trinity’s most popular providers. Our brokers have access to Rachel Vernile and she is a highly efficient business development manager, regularly helping to get complex and high net worth mortgages agreed.

HSBC’s new system will be operational later in the year.

Call Trinity Financial on 020 7016 0790 to secure an HSBC mortgage

Lender changes 5x salary mortgage criteria

Barclays has increased the minimum income it requires borrowers to earn to qualify for 5x salary mortgages.

Applicants will now require a salary of £55,000 or more for sole or joint applications for a 5x salary income multiple. The previous qualification income was £45,000.

Aaron Strutt, product director at Trinity Financial, says: “There are host of banks and building societies offering 5x salary mortgages for purchase and remortgage applications.

“The lenders use mortgage affordability calculations to work the maximum loan size so if you have financial commitments like credit cards or loans, they will probably reduce the amount they will lend.”  

Barclays is still offering its Premier and Wealth customers up to a maximum of 5.5x salary mortgages, although applicants will need an annual gross income of £75,000 or more, alternatively have £100,000 saved or invested with the bank.

Call Trinity Financial to secure a 5x salary mortgage