Clydesdale Bank and Virgin Money increase income multiples to 5.5 times salary for higher earners

by Aaron Strutt

Oct 05 2023

Virgin Money and Clydesdale Bank are the latest lenders to raise their income multiples to give borrowers more generous mortgage loan sizes.

Virgin Money will no longer limit contractors to 4.49x salary. Higher earners and customers remortgaging to the bank with no additional borrowing now have increased to the new 5.5x salary income multiple.

Here are Virgin Money and Clydesdale Bank's new mortgage income multiples:

Virgin Money's new purchase or remortgage income with additional borrowing

Income under £50,000 – 4.49x single and joint salaries
Income £50,000 to £74,999 – 5x single and joint salaries
Income of £75,000 or more – 5.5x single and joint salaries

Max 4.49x loan-to-income at all income levels if any of the following apply

Over 85% loan-to-value 
Any part of the mortgage is Interest Only

To determine the £50,000/£75,000 income levels, and when applying loan-to-income multiples, we’ll include the following of the two highest earning applicants: basic pay, 60% of allowable variable income and 100% of pension income.

Remortgage to Virgin Money with no additional borrowing

Up to 85% LTV – 5.5x single and joint salaries
Over 85% LTV – 4.49x single and joint salaries

For a remortgage with no additional borrowing, income level and self-employment don’t affect loan-to-income limits. The loan-to-income is max 4.49x if any part of the mortgage is interest-only.

Clydesdale Bank More lenders have been offering income stretch mortgages over the last few weeks  

Clydesdale Bank's income multiples are similar to Virgin Money's as they are in the same group. Higher earners and customers remortgaging with no additional borrowing have increased access to our maximum 5.5x multiple.

Clydesdale Bank also offers up to 5.5 times the salary for professionals. One or more applicants must Be fully qualified and employed or self-employed in one of the following occupations: Accountants, Architects, Barristers, Chartered Surveyors, Dentists, Medical Doctors, Pharmacists, Solicitors, or Vets.

Applicants must have a current income of £30,000 or more and be fully qualified in the last five years. The applicant must provide a scanned copy of their certification of full qualification within the chosen profession, including the date the qualification was achieved.

More lenders have been offering income stretch mortgages over the last few weeks  

The Co-operative Bank for Intermediaries and Nationwide for Intermediaries have changed acceptance criteria to provide borrowers with larger loan sizes. Many other lenders already offer different income multiples to borrowers, depending on their income, credit score, number of credit cards and loans, and the number of children they have.

Aaron Strutt, product director at Trinity Financial, says: "Mortgage lenders have been lowering their rates for quite some time, but they are starting to change more of their acceptance criteria because many borrowers are struggling to secure large enough mortgages."

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change.

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