Virgin Money offering 5.5 times salary mortgages
Virgin Money for Intermediaries is the latest lender to offer mortgages up to 5.5 times salary.
The lender has joined a growing list of banks and building societies issuing its higher income multiple to borrowers typically earning over £75,000 or £100,000 per annum.
Virgin Money offers different income multiples to borrowers purchasing a property or remortgaging depending on their salary. For example, when a single applicant or a couple's combined income is under £50,000, it is possible to borrow 4.49x salary, rising to 5x salary for those earning between £50,000 and £74,999 and 5.5x salary for those earning £75,000 or more.
The maximum income multiple reduces to a maximum 4.49x loan-to-income, whatever the income if any of the following apply:
- Over 85% loan-to-value
- Any applicant is self-employed (not including contractors meeting Virgin's contractor policy)
Virgin Money's accepted income
When working out the maximum mortgage loan size and loan-to-income multiples Virgin Money accept the following income:
- 100% of all forms of employed and self-employed incomes listed in Virgin's policy
- 60% of variable income
- 50% of second job income
- Rental income is not included for loan-to-income purposes
Which lenders offer 5.5 times salary mortgages?
Trinity Financial's brokers have access to various banks and building societies offering up to 5.5 times salary mortgages. Some lenders require borrowers to earn over £75,000 or have a combined income of £100,000 to qualify.
The biggest lenders providing income stretch mortgages include Santander, Barclays, HBCSC and Halifax for Intermediaries. One large lender offers mortgages up to 5.5 times the salary to first-time buyers, and its minimum income requirement is around £40,000.
Credit cards and loans will reduce the amount you can borrow
Mortgage lenders use affordably calculators to work out how much you can borrow for a mortgage. They want to know about your income and expenses.
Aaron Strutt, product director at Trinity Financial, says: "It is getting harder to secure the full 5.5 times salary mortgages unless you have an excellent credit score and few credit commitments.
"The more money you earn, generally it is possible to access larger loans. Although the maximum loan size will reduce significantly if you have expenses like cars on finance, childcare or private school fees, credit cards or loans."
Call Trinity Financial on 020 7016 0790 to secure a more generous mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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