6 Times Salary Mortgages: Unlocking More Buying Power

For first-time buyers, young professionals, and many home movers, today’s housing market is tough. Rising property prices in areas like London, Brighton, and Bristol make traditional mortgage limits of 4 to 4.5 times your salary feel restrictive. But now, more lenders are offering mortgages based on 5, 5.5, or even 6 times your salary. In this blog, we’ll break down how these higher loan-to-income (LTI) mortgages work, who they’re for, and how to qualify.

What Is a 6 Times Salary Mortgage?

A 6 times salary mortgage lets you borrow up to six times your annual income to buy a home. For example, if you earn £45,000 a year, you could borrow up to £270,000. This goes beyond the typical 4.5 times income limit, giving you more buying power, especially in expensive areas.

However, it's important to understand that these mortgages aren’t for everyone. Lenders have strict affordability checks and usually offer them to specific types of borrowers.

Why Consider a 6 Times Salary Mortgage?

There are a few situations where borrowing at a higher income multiple makes sense:

• Buying in Expensive Areas: If you want to buy in high-cost areas where property prices are well above average incomes, a higher LTI mortgage can make this possible.

• Career Growth Potential: These mortgages are often aimed at professionals like doctors, solicitors, architects, and accountants who are early in their careers but expect their income to grow significantly.

• First-Time Buyers with Strong Finances: If you’re a first-time buyer with a steady income, good credit, and a decent deposit, a 6 times salary mortgage could help you get on the property ladder in competitive markets.

  
  

Be mindful though that borrowing more comes with its risks, like higher monthly payments and greater exposure to rising interest rates. It’s important to weigh up these factors carefully before choosing this option.

Key Benefits of 6 Times Salary Mortgages

• Enhanced Purchasing Power: Gain access to more expensive homes or better neighbourhoods.

• Flexibility for Professionals: Designed with high-income or high-potential professions in mind.

• Lower Deposits: Some lenders offer competitive deposit requirements, as low as 5%.

  
  

Who Qualifies for a Mortgage 6 Times Their Salary?

• Professional Occupations: Many lenders favour professionals like doctors, accountants, architects, engineers, and solicitors due to their career stability and growth potential. These professions are generally seen as lower risk.

  
  

• Higher Income Earners: Individuals earning £35,000 or more annually (or a combined income of £55,000 for joint applicants) are generally more likely to qualify. However, eligibility criteria can vary between lenders.

  
  

• Solid Credit History: An excellent credit score is essential. A good financial track record reassures lenders that you can manage higher repayments.

  
  

• Adequate Deposit: Deposit amounts vary, but putting down a larger amount, usually 10–15% of the property's value, can greatly improve your chances of approval. In some cases, you might qualify with a deposit as low as 5%, still allowing you to borrow up to six times your income.

Pros and Cons of 6 Times Salary Mortgages

Pros

• Opens doors to properties previously out of reach.

• Flexible options for high-earning professionals.

• Useful for young professionals expecting significant income growth.

  
  

Cons

• Higher borrowing costs, with some lenders charging above-average interest rates.

• Limited availability, with lenders only allowing a small percentage of these mortgages due to regulations.

• Increased financial risk if the base interest rate rises.

  
  

Tips to Improve Your Eligibility

If you're considering a mortgage with a 6x income multiple, make sure you’re prepared.

1. Build Your Credit Record

   • Check Your Score: Use agencies like Experian or Equifax to review and improve your credit score.

   • Reduce Debt: Pay off loans or credit cards to increase your affordability.

   • Stay Up to Date: Address any errors or outdated information on your report.

   
   

2. Stabilise Employment and Income

   • Employment Type: Lenders prefer stable, full-time jobs over contract or freelance work.

   • Request a Pay Rise: A higher salary could significantly raise your borrowing limit.

   
   

3. Prepare Documentation

   • Gather key documents, including:

   • P60 forms

   • Last three months of payslips

   • Utility bills or council tax statements (be sure you're registered to vote at your current address!)

   • Recent bank statements

   • Evidence of your Deposit

   
   

4.  Save a Larger Deposit

   • Even with access to higher multiples, a strong deposit may improve the terms offered by lenders.

   
   

Should You Consider a 6 Times Salary Mortgage?

These mortgages offer more flexibility, but they’re not the best choice for everyone. It’s important to assess your ability to make long-term repayments, especially with fluctuating interest rates.

For young professionals and first-time buyers focused on career growth, this type of mortgage can help you enter the housing market sooner, without waiting years to save.

If you’re unsure about your options, speaking with a mortgage adviser or broker can simplify the process and help you find the right product.

Unlock Your Homeownership Goals

Don't let high property prices hold you back. With the right lending options and guidance, you can step onto the property ladder and secure your dream home.

To explore your eligibility for 6 times income mortgages and unlock your true borrowing potential................

Your home may be repossessed if you do not keep up repayments on your mortgage.

Published by Beechwood Mortgages Ref: 219335 with review and approval from Stonebridge Mortgage Solutions Limited who is authorised and regulated by the Financial Conduct Authority Ref: 454811.