West Brom raises income multiple to 5.75x salary for higher earners
West Brom for Intermediaries has increased its maximum mortgage income multiple to 5.75 times income for applicants earning over £75,000.
Mortgage affordability is one of the main issues borrowers face when trying to secure funds to buy a home. Lenders are doing more to increase income multiples, particularly for higher earners and professionals.
Aaron Strutt, product director at Trinity Financial, says: "West Brom has changed its mortgage affordability rules to provide larger mortgage loans to those struggling to secure sufficient mortgages through other banks and building societies. Often, borrowers need slightly more generous calculations to get the mortgage amount they need.
"Mortgage lenders tend to offer mortgage income multiples between four and 5.5 times salary, although the amounts lender issues can vary. The issue is that lenders reduce mortgage amounts when applicants have credit cards, loans, cars on finance, kids in private school or childcare costs. This makes the option of higher-income mortgages more important."
New West Brom income multiples/loan-to-income calculations:
- 4.5 x income where allowable income is ≤£50,000 per annmum.
- 5 x income where allowable income is >£50,000 and ≤£75,000 per annum.
- 5.75 x income where allowable income is >£75,000 per annum.
- Multiples above 4.5 x will be capped at 85% loan-to-income.
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How many lenders offer 5.5 times salary mortgages?
A selection of lenders offers up to 5.5 times salary mortgages, including Barclays for Intermediaries, HSBC, Halifax, Clydesdale Bank, and Accord Mortgages.
Nationwide for Intermediaries offers up to 5.5 times salaries mortgages to some first-time buyers while Newcastle for Intermediaries offers mortgages between £500,001 and £1.5 million at its underwriter's discretion.
Some lenders offer up to six times salary mortgages, including smaller building societies. One specialist bank provides a long list of professionals, including Accountants, Actuaries, Architects, Barristers (including Barristers in Pupillage), Dentists, Chartered Engineers, Medical Doctors, Optometrists, Paramedics, Pharmacists, income stretch mortgages.
Kensington is also offering up to 6 x salary mortgages, subject to affordability, to qualified Actuaries, Barristers, Chartered Accountants, Commercial Pilots, Dentists, Doctors, and Solicitors. Teachers Building Society also offers six times income stretch mortgages to financial professionals earning over £200,000 each year.
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The information contained within was correct at the time of publication but is subject to change
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