Lenders offering six times salary mortgages
Trinity Financial has access to a selection of lenders offering up to six times salary mortgages with varying acceptance criteria.
While mortgage lenders provide up to six-times salary mortgages, they are typically only available through the smaller providers, and these lenders charge a premium for the income stretch products.
Mortgages over £500,000
Suppose 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 Kensington for Intermediaries up to 6 times salary products. Kensington's rate will be just over 3% if you have a 25% deposit and 4% if you have a 20% deposit. If you are not a professional, like a doctor, dentist or lawyer, you may need to take a five-year fix, and the arrangement fee is £1,999.
Another building society can provide up to 6 times salary mortgages, but the applicant(s) will need 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.
Earn over £200,000 and want a six-times salary mortgage?
Teachers for Intermediaries will consider loans of up to 6 times income for those with a 20% deposit when clients have evidenced income of £200,000+. If they want an interest-only mortgage, they will need a 30% deposit. The lender can accept up to 75% of bonus income for higher earners working in financial services.
The lenders offering larger income stretch mortgages often need to have larger mortgage loans signed off by their credit committee. They assess the client's financial requirements and the overall situation and decide if it makes sense to lend or not.
Six times salary mortgages up to £500,000
To qualify for one of the building societies offering up to six times income mortgages with a maximum loan size of £500,000, the highest-earning applicant will need to earn at least £50,000. It can lend 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 lender will contribute to the property valuation and legal fees - the rate is also 0.1% more expensive.
Why do borrowers take six-times salary mortgages?
Aaron Strutt, product director at Trinity Financial, says: "Many of the borrowers we speak to that want income stretch mortgages need that extra bit of money to get the property they require. They often have talked to their bank, and their application has been refused.
"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 lender's lower rates
Trinity Financial has access to many lenders offering 5.5 times salary mortgages to borrowers purchasing a property or remortgaging. Some lenders expect applicants to earn over £50,000 or £100,000, while others want them to be professionals such as doctors, dentists or lawyers.
Mortgage lenders offering 5.5 times salary do not typically charge a premium for the rates. We will always check to make sure you do not qualify for these deals before applying to a six times salary lender.
Five times salary mortgages
Our brokers still have access to lenders offering five times salary, but there is less choice than there used to be.
Call Trinity Financial on 020 7016 0790 for help to secure an income stretch mortgage or book a consultation
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