Expert Knowledge & Professional Service

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

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

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

If you do not have a Premier account, Trinity Financial 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 or have £100,000 saved or invested with the bank. 

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

Our advisers 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 typically offer mortgages over five times income. 

“Trinity has access to another leading lender offering up to 5.5 times salary mortgages providing clients earn over £100,000 - either individually or as part of a joint application. The bank has competitively priced rates and you do not need to open a premier account to qualify. The maximum loan is £1,000,000.”

One more bank recently started providing 5.5 times salary mortgages to Accountants, Architects, Barristers, Chartered Surveyors, Dentists, Medical Doctors, Pharmacists, Pilots, Solicitors and Vets. Applicants must have been qualified in the last five years and earn £40,000 or more.

To secure a 5.5 times salary mortgage call Trinity Financial on 020 7016 0790 or send an enquiry.

How long are the lenders taking to produce mortgage offers?

Lenders improving rates as HSBC launches 1.59% five-year fix for mortgages up to £5 million

HSBC for Intermediaries has launched a leading five-year fix undercutting the other mortgages across the market.

The rate is priced at 1.59% and fixed until 31 January 2025. Once the deal expires, it reverts to the lender’s 4.19% standard variable rate. The overall cost for comparison is 3.2% APRC representative. 

The mortgage has a £999 arrangement fee, and applicants will need a 40% deposit to qualify. The maximum loan size is £5 million.

Aaron Strutt, product director at Trinity Financial, says: “Over the last few weeks there have been more rate changes than normal and some lenders have improved the price of their mortgages two or three times. The best buy tables are changing on a daily basis as the lenders look to undercut each other and drive down prices.

”If you are looking for the cheapest possible rate then it makes sense to take a two-year fix. However, if you are looking for longer-term payment security to see out the Brexit chaos then you are not alone. According to LMS 50% of borrowers who remortgaged in July took out a five-year fix, up from 46% in June.

Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate of 1.59% until 31/01/2025 at 1.59% and then on a variable rate of 4.19% for the remaining 20 years, would require 63 monthly repayments of £1,014.48 followed by 237 monthly repayments of £1,280.72. The total amount repayable would be £367,767.88 made up of the loan amount, plus interest (£116,443.83) and fees of £999. The overall cost for comparison is 3.2% APRC representative.

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

Call Trinity Financial on 020 7016 0790 to secure a mortgage

£1,400,000 mostly interest-only mortgage for client with income from four companies

Trinity Financial recently arranged a £1,400,000 mortgage for a client using the income from four of his companies.

He had found a large property to buy and was keen to secure a mortgage because his family were living overseas.

He asked us to find a mortgage where the monthly repayments were as low as possible and most of the loan was on interest-only. He had spoken to a bank and they had sent him terms, but he wanted a larger loan and a cheaper rate.

Solution

Trinity’s broker approached the £1 million+ mortgage team at a high street bank and after discussing the client’s financial situation they agreed to provide an 80% loan-to-value mortgage. 

This meant there was £1,350,000 (75% ltv) of the mortgage on interest-only and £90,000 (5% ltv) on capital repayment.

The bank worked out the maximum loan size using the profits before tax, plus the director's salary.

The lender offered a very competitively priced two-year fix at 2.04% with a £1,999 arrangement fee and the mortgage offer was produced within ten days.

Case details

Property type: Three-bedroom house

Value: £1,800,000

Mortgage: £1,440,000

Rate: 2.04% until 30/11/2021

Reversion rate: The bank’s standard variable rate, currently 5.20%.

The overall cost for comparison is 4.9% APRC representative.

Lender’s arrangement fee: £1,999

Mortgage term: 25 years

Repayment type: 70% interest-only and 5% capital repayment

Loan-to-value: 75%

Early repayment charge: 3% of the loan in year 1, 2% in year 2.

Overpayments: 10% per annum

Representative example: A mortgage of £1,440,000 payable over 25 years, initially on a 2.04% fixed rate for 25 months and then on a variable rate of 5.20% for the remaining 23 years, would require 25 monthly payments of £2,686.74 followed by 275 monthly payments of £6,385.79. The total amount repayable would be £3,174,845 and a £1,999 arrangement fee. The overall cost for comparison is 4.9% APRC representative.

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

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

Some lenders using 100% of overtime and commission in mortgage affordability calculations

If you are working as a sales manager selling luxury goods, tech or medical equipment, you may well receive a larger percentage of your salary through a bonus or commission.

Mortgage lenders accept overtime as part of a mortgage application, but the percentage may be limited depending if it is guaranteed, regular or fluctuating income.

Most mortgage lenders will take 50 or 60 per cent of overtime although some lenders are much more generous.

Trinity has access to one large building society taking up to 100% of commission income. When the borrower is paid monthly or four weekly it will want evidence of the latest three payslips. The lender will request for annual payslips for quarterly, half-yearly and annual bonuses with commission.

Coventry for Intermediaries will consider using 100% of any gross guaranteed income of 50% for regular and fluctuating income. HSBC has also recently changed its policy and will consider using up to 100% of guaranteed overtime, bonus or commission confirmed on the customers last two years P60s.

Aaron Strutt, product director at Trinity Financial, says: “The lenders have different policies for overtime payments but if you have a track record of receiving the income it should be possible to borrow up to five times salary depending on your job.

“Some of our clients are paid a small basic salary and a higher amount of commission. We recently arranged a mortgage for an estate agent using 100% of his monthly commission and his basic salary.”

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

HSBC offering 5 times salary mortgages for those earning £100,000 or more

HSBC for Intermediaries has increased the income multiple it uses to work out how much applicants can borrow for a mortgage.

For those earning less than £30,000 the maximum income multiple is 4.49 times single or joint salaries, rising to 4.75 times salary if you earn more than £30,000- and five-times salary for those earning £100,000 or more.

Aaron Strutt, product director at Trinity Financial, says: "Each of the lenders works out how much someone can borrow using affordability calculators, but they use different figures to generate the maximum loan."

Why would people want to take such high-income multiple?

Many borrowers would not stand a chance of buying a property they want to live in or in an area they like without the higher income multiples. 

It was not long ago income stretch multiples of up to six times salary were available through the smaller building societies, although the bigger lenders have entered this market. 

What is the maximum income multiple? 

Trinity Financial’s brokers have access to a host of lenders offering up to 5.5 times salary mortgages for those earning over £75,000.

We have also secured access to a lender offering up to 5.75 times salary mortgages for applications borrowing between £500,000 and £1.5 million.

How do you get a more generous income multiple?

Trinity Financial's brokers can quickly work out which lender will offer you the most money once they know how much you earn and the size of your deposit.

The lenders will want to know about your current expenses like credit cards and loans also your credit history.

What sort of mortgages do we arrange?

Click here to view some of the mortgages we have arranged over the last ten years.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation or complete our mortgage questionnaire for a more detailed response

Santander announces 2017/2018 self-employed tax returns cut-off date for mortgage applications

Santander for Intermediaries has announced the most recent year-end figures for self-employed borrowers must not be more than 18 months before the date of the mortgage application.

For mortgages submitted from Friday 4 October, the evidence of the most recent year-end can't be for the 2017/2018 tax year as most lenders would require more up-to-date income evidence.

Aaron Strutt, product director at Trinity Financial, says: "If you are thinking about applying for a mortgage and you’re self-employed, you need to get your application submitted quickly or ensure your accounts are up to date.

"You can submit your tax return early to generate your trading figures and you do not have to pay the bill immediately."

How do I get my tax calculations?

• Log into their HMRC online account (go to www.online.hmrc.gov.uk) 
• Select ‘Self-Assessment’ 
• Follow the link ‘tax return options’ 
• Choose the year from the drop down menu 
• Follow the link ‘view calculation’ 
• Follow the link ‘view and print your calculation’ 
• Follow the link 'print your full calculation'. 

For Tax Year Overviews you should: 

• Log into their HMRC online account 
• Select ‘Self-Assessment’ 
• Follow the link ‘view account’ 
• Follow the link ‘tax years’ 
• Choose the year from the drop down menu and click the ‘Go’ button 
• Follow the link ‘print your Tax Year Overview’. 

Can I get a mortgage with older tax figures?

Trinity’s brokers can secure mortgages through some banks if the figures are old but they would need to agree to work off of our clients previous two year’s figures. They would also need an accountants projection of their anticipated earnings but this income may need to be higher than the last two years profits. 

Are the mortgage lenders offering cheap rates for the self-employed?

The majority of banks and building societies do not charge a premium for self-employed mortgages and the rates are same for employed people.

The banks are offering their cheapest ever rates and there is a huge choice of two, three, five and ten-year fixed mortgages, especially if you have a deposit of at least 15%.

Our "mortgage of the week" is an incredibly cheap 1.19% two-year fix available for purchases and remortgages.

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

Clydesdale Bank improves its Contractor mortgage policy

Clydesdale Bank for Intermediaries has made changes to its contactor policy making it easier to qualify for a mortgage. 

The bank is now considering applications from self-employed contractors working in any sector, subject to a minimum income of £50,000 per annum. 
 
The income is calculated by the current contract × 46 weeks and applicants with more than one-year contractor experience are acceptable when they have a five per cent deposit. They must have had their contract renewed at least once. 
 
Contractors with less than one-year contractor experience are acceptable providing they have a 30 per cent deposit. 

Experience in their field of expertise 

All contractors must have a minimum period of two years’ experience whether as an employee or contractor - and this must have been in same the industry. 
 
Clydesdale Bank will accept applications from contractors where there has been a maximum gap of six weeks between contracts. If there is more than a six-week gap, the application will need to be agreed in advance by our contact at the bank prior to submission.  

How many lenders offer Contractor mortgages? 

Trinity’s brokers have access to a host of lenders offering generous contractor mortgages. 

One of the largest banks has a great policy for IT contractors on any income and other contractors whose income is more than £500 per day or £75,000 per annum. Whether employed or self-employed, the lender accepts the gross value of the contract as evidence of income.  

Aaron Strutt, product director at Trinity Financial, says "All applicants must have current continuous employment of 12 months or more with six months of the contract remaining or two years continuous service in the same type of employment. 

"The borrower will be treated as self-employed if they have more than one contract, or where they have set up a limited company and employ other contractors."

Are the rates well priced? 

The majority of banks and building societies do not charge a premium for contractor mortgages and the rates are same for employed people. 

The lenders are offering their cheapest ever rates and there is a huge choice of two, three, five and ten-year fixed mortgages. 

Our "mortgage of the week" is an incredibly cheap 1.19% two-year fix available for purchases and remortgages. 

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

Fixed rate mortgages edging closer to 1%

The cheapest two-year fixed-rate mortgages are edging closer to the 1% mark as lenders improve the pricing on their super-low deals.

Trinity Financial has access to NatWest for Intermediaries sub-1.20% two-year fix available to borrowers purchasing a property or remortgaging. It has a £995 arrangement fee.

Applicants will need a 40% deposit to qualify and be borrowing between £25,000 and £10 million.

Aaron Strutt, product director at Trinity Financial, says: "If the lenders keep on lowering their prices at the same rate, we are likely to have two-year fixes priced around 1% over the next few months. 

"As many of the lenders offering the best deals have returned to the interest-only market, it is possible to access large mortgages with particularly low monthly payments."

Buy-to-let mortgages

There is not much of a premium to pay for many of the cheapest buy-to-let mortgages and our brokers have access to a host of sub-2% buy-to-let five-year deals.

Source: Trinity Financial   

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

Barclays removes requirement to open Premier bank account to secure 5.5 times salary mortgage

Barclays for Intermediaries has removed the necessity to open a Premier current account to access its 5.5 times salary mortgages.

Barclays was one of the first major lenders to provide 5.5 times salary mortgages, but other providers have adopted similar income policies providing them with more competition. Applicants will still need a sole income of £75,000 or a joint income of £100,000 to qualify.

Aaron Strutt, product director at Trinity Financial, says: "More of the lenders are offering generous income multiple mortgages, so there is a lot of choice at the moment.

"Trinity's brokers have access to one building society providing up to 5.75 times income mortgages when you borrow between £500,000 and £1.5 million. The lender can use up to 100% of bonuses and provide part interest-only."

Barclays new build house loan size increased

Barclays has raised the maximum loan size on all 85%+ loan-to-value lending on houses from £375,000 to £500,000. For borrowers looking to pay-off the Equity Loan element of their Help to Buy scheme, the bank has also expanded its policy to allow lending up to 90% loan-to-value.

Call Trinity Financial on 020 7016 0790 to secure a mortgage

Lenders offering cheapest ever equity release rates

Equity release rates have dropped to a new record low after More2life launched a sub-2.7% rate.

The biggest lenders have been competing fiercely to offer the cheapest equity release deals in recent months bringing rates below 3% for the first time since records began.

Equity release has increased in popularity as older borrowers have tapped into their properties to support their lifestyles. They are also gifting deposits to their children.

Jed Newton, Trinity Financial’s director and equity release specialist, says: “The improvements to pricing and increased flexibility of the products have moved equity release from being a product of last resort to a sensible consideration for many people in their retirement.”

Data from Key Retirement earlier this year suggested that pensioner property wealth jumped by more than £37bn in 2017 to top £1trn.

Source: Mortgage Strategy    

Contact Jed Newton on 020 7016 0793 to secure an equity release mortgage