How does Barclays work out how much applicants can borrow for a mortgage?
How much will Barclays lend me for a mortgage?
Barclays for Intermediaries has a good reputation for giving borrowers more generous mortgage loan sizes.
In its latest criteria change, Barclays has announced mortgage affordability improvements and better income multiples. Joint applicants with incomes between £75,000 and £100,000 will now be able to access up to 5.50x times salary mortgages up from five times salary. They will need a 15% deposit.
Joint applicants earning between £45,000 and £60,000 with a 15% deposit will be able to access a five times salary mortgage. This is up from 4.49x salary.
Like all other lenders, Barclays will reduce the amount applicants lend borrowers if they have credit cards, loans, school fees or other ongoing credit commitments. Not all banks or building societies use the same mortgage affordability calculations, which means the amount they lend varies. For example, some banks and building societies offer up to six times salary mortgages.
Barclays changes from hard to soft mortgage footprint
Barclays has also confirmed that it has moved from a hard credit footprint to a soft credit footprint for decision-in-principles. This means borrowers can apply for a mortgage without worrying about leaving a hard footprint on their credit report.
What is Barclays interest-only mortgage criteria?
Barclays provides pure interest-only mortgages to borrowers, providing they have a 25% deposit. Customers may be able to take a Barclays interest-only if they have a 15% deposit with a Part interest and Part repayment option using the sale of the mortgaged property.
The minimum income to qualify for interest only is £75,000 gross annual income for a single applicant or £100,000 for a joint application. Where no individual earns more than £75,000 there is a selection of mortgage repayment vehicles available to qualify for interest only, including existing Stocks and Shares or unit investment trusts, providing they are professionally managed. The Sale of Property can be used, but applicants are required to have £300,000 equity in the property.
Will Barclays take bonus income with a mortgage?
Barclays can use bonuses, Commission and Overtime paid monthly or more frequently. These variable incomes are capped at 100% of basic salary plus allowances.
Annualised Bonus are acceptable, including any bonus paid less frequently than monthly. The lower of the latest year’s bonus or average bonus over the two most recent years will be used to work out how much you can borrow. Up to 100% of the bonus can be used for income multiples and is not capped in line with the salary.
Call 020 7016 0790 to let our brokers confirm how much you can borrow or book a consultation
The information contained within was correct at the time of publication but is subject to change
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