Lenders offering six times salary mortgages
Trinity Financial has access to three lenders offering up to six times salary mortgages, but they all have specific acceptance criteria.
To qualify for one of the building societies offering up to six times income mortgages and a maximum loan size of £500,000, the highest-earning applicant will need to earn at least £50,000.
This building society can consider lending to applicants with a 15% deposit, and it is offering one three-year discounted rate at 2.89% with a 0.3% arrangement fee. If you are remortgaging, the society will contribute to the property valuation and legal fees - the rate is also 0.1% more expensive.
Mortgages over £500,000
If you are looking for a mortgage over £500,000 and have a single or combined income of over £100,000 - our brokers have access to a larger lender offering up to 6 times salary. Kensington's rate will be just over 3% if you have a 25% deposit and well over 4% if you have a 20% deposit. The arrangement fee is £1,999.
Another building society can provide up to 6 times salary mortgages, but the applicant(s) will need to have a 40% deposit and earn over £100,000. The lender can accept a mixture of foreign income, unusual properties and clients with complex financial situations. The arrangement fee is likely to be 0.5% of the loan.
Both building societies offering income stretch mortgages need to have larger mortgage loans signed off by their credit committee that meet a few times a week. They assess the client's financial requirements and the overall situation and decide if it makes sense to lend or not.
Aaron Strutt, product director at Trinity Financial, says: “The building societies will use the net income on payslips to work out how much they will lend. Pension contributions, student loans and car loans will all reduce the amount you can borrow.
“Borrowers will need a good salary and have virtually no personal debts. The lenders have strict affordability criteria and will certainly not offer six times income to everyone.”
Other 5.5 times salary lenders lower rates
Trinity Financial has access to a large bank offering 5.5 times salary mortgages. The bank has a minimum single or joint income requirement of £100,000, and applicants will need a 25% deposit.
5 times salary mortgages
More of the lenders have tightened their mortgage income multiples, and it is harder to get 5 times salary, especially if you are self-employed. Our brokers still have access to lenders offering 5 times salary, but there is less choice than there used to be.
Call Trinity on 020 7016 0790 for help to secure an income stretch mortgage or book a consultation