Barclays back offering 5 or 5.5 times salary mortgages to borrowers earning over £75,000
Barclays for Intermediaries has reintroduced the 5 and 5.5 times single and joint salary mortgages in a positive move for the market.
The bank pulled its income stretch options in September last year when the lender was close to breaching the Prudential Regulation Authority's rules. This was following the instability of mortgage completions caused by the coronavirus pandemic.
Barclays offers 5 and 5.5 times salary income multiples to borrowers earning at least £75,000 or £100,000 combined. However, if on a joint application one person earns £75,000 and say the other earns £15,000, that still qualifies them for the 5.5 times salary multiple.
Applicants will need a 20% deposit and a good credit score to qualify for the more generous mortgages. If they do not meet the minimum income and deposit requirements, the income multiple reduces to 4.49 x salary.
More lenders have restarted offering better income multiples, and it is not so hard to borrow five times salary. Santander is another leading lender offering 5.5 times salary to borrowers earning over £100,000 with a 25% deposit.
Aaron Strutt, product director at Trinity Financial, says: "It is still good news that Barclays has eased its criteria and started offering these income multiples again, it was possible to borrow between five and 5.5 times salary before this change, but it was getting harder.
"Santander is one of the more generous lenders, but the likes of Kensington and Market Harborough Building Society provide five times salary mortgages to those earning over £100,000."
Platform for Intermediaries offering 5.5 times salary
Platform for Intermediaries is part of The Co-operative Bank, and it is offering 5.5 times salary mortgages to professionals, including fully qualified, registered and practising Solicitors, Barristers, Medical Doctors, Pharmacists, Accountants, Actuaries, Vets, Optometrists and Dentists who want to buy their first home or move property. They must have qualified within the last five years.
The minimum income requirement for the professional applicant is £35,000, joint applications are acceptable, but at least one applicant must be a professional, and the professional must meet the minimum requirement.
Barclays for Intermediaries latest mortgage affordability calculation:
Loan-to-value ≤ 85%- Capital and interest to access 5.5 times salary: At least one applicant has a gross annual income greater than £75,000* or the two highest-earning applicants have a combined gross annual income of greater than £100,000*
Loan-to-value ≤85%- Capital and interest to access five times salary: The total combined gross annual income of the two highest-earning applicants is greater than £60,000.
Loan-to-value ≤ 80%- Interest only or part & part to access five times salary: At least one applicant has a gross annual income of ≥ £75,000* or the two highest-earning applicants have a combined gross annual income of greater than £100,000*
Source: Barclays for Intermediaries website
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
