How To Get a Mortgage 6 Times Your Salary
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Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
03.10.2024
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
03.10.2024
Getting a mortgage that is six times your salary in the UK can seem like a daunting task, but with the right information and guidance, it is achievable. This guide will walk you through everything you need to know about obtaining a mortgage based on six times your income, from eligibility requirements to finding the right lender.
Can You Get a Mortgage Based On 6 Times Salary?
Yes, it is possible to get a mortgage 6 times salary in the UK, but it is not common. Most lenders typically offer mortgages up to 4.5 times your salary. However, some specialised lenders or high street banks might extend to 6 times your income under certain circumstances. These circumstances often include having a high income, excellent credit score, and a substantial deposit.
Factors That Influence Eligibility
- Credit Score: A higher credit score increases your chances.
- Income Stability: Regular and high-income streams are favorable.
- Deposit Size: A larger deposit can make lenders more comfortable.
- Employment Status: Permanent, full-time employment is preferred.
- Debt-to-Income Ratio: Lower existing debts improve your prospects.
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How to Borrow 6 Times Annual Salary
To borrow 6 times your annual salary, you need to present a strong case to lenders. Here are the steps to follow:
- Improve Your Credit Score: Ensure your credit score is as high as possible by paying off debts and maintaining good credit habits.
- Save for a Larger Deposit: Aim for at least 20-25% of the property value.
- Reduce Existing Debts: Lower your debt-to-income ratio to make your application more attractive.
- Find a Specialist Lender: Look for lenders that offer high income multiple mortgages.
- Consider Using a Broker: A mortgage broker can help you find the best deals tailored to your financial situation.
- Document Your Income: Provide proof of income, including payslips, tax returns, and bank statements.
The table below illustrates potential borrowing amounts based on different income multiples, including 6 times salary.
Yearly Salary | 4 Times Salary | 4.5 Times Salary | 5 Times Salary | 5.5 Times Salary | 6 Times Salary |
£20,000 | £80,000 | £90,000 | £100,000 | £110,000 | £120,000 |
£30,000 | £120,000 | £135,000 | £150,000 | £165,000 | £180,000 |
£40,000 | £160,000 | £180,000 | £200,000 | £220,000 | £240,000 |
£50,000 | £200,000 | £225,000 | £250,000 | £275,000 | £300,000 |
£60,000 | £240,000 | £270,000 | £300,000 | £330,000 | £360,000 |
£70,000 | £280,000 | £315,000 | £350,000 | £385,000 | £420,000 |
£80,000 | £320,000 | £360,000 | £400,000 | £440,000 | £480,000 |
£90,000 | £360,000 | £405,000 | £450,000 | £495,000 | £540,000 |
£100,000 | £400,000 | £450,000 | £500,000 | £550,000 | £600,000 |
This table provides a clear view of how much you can borrow with various income multiples, including a 6 times salary mortgage.
Which Lenders Offer Mortgages 6 Times Salary?
Not all lenders in the UK offer mortgages 6 times salary. Here are some types of lenders that might consider this:
- Specialist Lenders: They often have more flexible criteria.
- High Street Banks: Some may offer higher multiples for high-earning professionals.
- Private Banks: They cater to high-net-worth individuals with substantial assets and income.
It’s crucial to research and compare different lenders and work with a mortgage broker to find the best options available.
What Types of Income Are Considered for a 6 Times Salary Mortgage?
Lenders consider various types of income when assessing your eligibility for a 6x salary mortgage:
- Basic Salary: The primary income source.
- Bonuses and Commissions: Regular bonuses or commissions can be included.
- Overtime: Consistent overtime payments may be considered.
- Rental Income: Income from rental properties can boost your total income.
- Self-Employment Income: Net profit or income from your business, supported by tax returns.
Can I Get A Mortgage 6 Times Salary Based On Joint Income?
Yes, joint incomes can be combined to increase your borrowing capacity. For instance, if both partners have stable and high incomes, lenders may be more willing to offer a mortgage 6 times your combined salary.
Benefits of Joint Income Mortgages
- Higher Borrowing Limit: Combining incomes increases the total amount you can borrow.
- Shared Responsibility: Mortgage repayments can be shared between both partners.
- Better Affordability: Lenders view joint applications as less risky if both incomes are stable.
What Is The Minimum Deposit Required for a 6 Times Income Mortgage?
The minimum deposit required typically depends on the lender’s policies and the property’s value. Generally, for a high income multiple mortgage like this, you should aim for at least a 20-25% deposit. This demonstrates financial stability and reduces the lender’s risk.
Are There Downsides of Mortgages Using Higher Income Multiples?
While a 6 times income mortgage can help you buy a more expensive property, there are potential downsides:
- Higher Monthly Repayments: Larger loans mean higher monthly payments, which can strain your budget.
- Increased Risk: Borrowing more increases the risk if your financial situation changes.
- Stricter Criteria: Fewer lenders offer such high multiples, and those that do have stringent eligibility criteria.
- Interest Rates: You might face higher interest rates due to the increased risk to the lender.
Mortgage Affordability Calculator
Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.
Get expert advice immediately if...
- You need to borrow more than 4.5 times your annual income
- You are only using one income on your application
- You earn income through sources such as Benefits, Commission or Rental income
- You consider yourself to be on ‘low’ income
If one or more of the above apply to you, it’s important to get expert advice before making an application. The right broker can help maximise your chances of approval based on your circumstance.
Is It Possible To Borrow More Than 6 Times Your Salary?
In exceptional cases, it may be possible to borrow more than 6 times your salary. This usually applies to high-earning professionals in fields such as medicine, law, and finance. However, such cases are rare and typically require a substantial deposit, excellent credit history, and a strong financial profile.
Ready to Get a Mortgage Based on Up to 6 Times Your Salary?
If you are ready to pursue a mortgage based on 6 times your salary, here are the next steps:
- Evaluate Your Financial Health: Ensure you have a strong credit score, low debt, and a significant deposit.
- Research Lenders: Look for lenders or brokers specialising in high multiple mortgages.
- Prepare Documentation: Gather all necessary financial documents.
- Consult a Mortgage Broker: They can help you navigate the process and find the best deals.
- Apply for Pre-Approval: Get pre-approved to understand how much you can borrow and streamline your property search.
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FAQ
01/ Can I get a 6x salary mortgage with credit issues?
It is challenging to get a mortgage 6 times your salary if you have credit issues. Lenders offering high multiple mortgages typically require excellent credit scores. However, working to improve your credit and consulting with a mortgage broker can provide options.
02/ Can I get a mortgage 6 times my income if I'm retired?
Retired individuals usually find it harder to secure high multiple mortgages since income is often lower. However, substantial pension income, investments, and other assets can help.
03/ Can self-employed borrowers use a 6x income multiple?
Yes, self-employed borrowers can apply for a 6x income multiple mortgage. Lenders will require detailed financial records, including tax returns and business accounts, to verify income stability.
04/ Mortgage calculator UK 6 times salary: How much can I borrow?
A mortgage calculator for a 6 times salary can give you an estimate of your borrowing capacity. For example, if your annual salary is £50,000, you might be able to borrow up to £300,000.
05/ Can I get a mortgage for more than 6 times my salary?
In rare cases, you may be able to borrow more than 6 times your salary, particularly if you have a high income, excellent credit score, and substantial assets. Consult with a mortgage broker for tailored advice.
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