How to Get a Mortgage 5x Salary

Tip 1 – Income and Job Security

Income is almost always proportionate to the amount providers are willing to lend. In other words, higher income lets you borrow more. Not just that, but a stable job means you’re likely to make your payments on time.

Some lenders only need to look at your basic salary, while others consider other sources of earnings, such as bonuses, commissions, and other investments.

A stacked income portfolio can increase your chances of getting approved for a larger loan or a more favourable interest rate.

For self-employed borrowers, lenders require their SA302 tax calculations for the last three years, preferably compiled by a chartered accountant.

Tip 2 – Age

As mortgages are long-term commitments, younger borrowers are more attractive to lenders than those closer to the retirement age. They have more years left in their careers, so they’re at better odds of fulfilling the financial obligations of a huge mortgage.

Conversely, older borrowers are high-risk and more likely to default on their mortgage due to a decline in income.

Overall, lenders will evaluate each borrower individually, considering other variables, like income and credit rating. Ultimately, the decision to grant a mortgage hinges on your ability to repay the loan, regardless of age.

Tip 3 – Profession

Most lenders target specific professions because they think these jobs are lucrative and secure. For instance, one mortgage lender offers an 80% mortgage on a 5.5 multiplier for doctors and dentists only, while another specialises in offering high LTI deals just for teachers.

Aside from those examples mentioned, these professions are considered the most trustworthy:

• Accountant
• Actuary
• Architect
• Barrister
• Engineer
• Solicitor
• Optometrist
• Veterinary Surgeon

Even if you have only a few years of practising, some lenders will let you borrow at a 5x income multiple. The reason is that these jobs have the potential to pay well later on, despite the modest entry-level wage.

Plus, if you happen to lose your job, these professions provide strong employment prospects. 

Tip 4 – Spending Habits and Monthly Outgoings

Lenders want to see that you have enough disposable income to comfortably repay the loan, along with your expenses.

With mortgages based on a high LTV, lenders will ensure you’re up to speed with your monthly expenditures, such as:

• Council tax
• Utility bills
• School fees
• Childcare costs
• Insurances
• Car loans
• Credit card debts

Tip 5 – Credit Score

There isn’t a specific score you need for a mortgage five times your salary. Different lenders have different ways of making decisions, but all of them look for the same things, including:

• Information on your application form
• The information they may already have on you, in case you’re banking with them
• Your credit report, along with your public record (e.g. IVAs and CCJs)
• Their lending policy 

They’ll study your credit report and get a good look at your financial past. They’ll see your credit card balances, whether you’re registered to vote, and if you’ve ever missed payments. From there, they’ll create their own credit score for you.

Tip 6 – Deposit

If you can afford it without leaving you “house poor,” a significant deposit may increase your eligibility for a mortgage five times your salary. 

With more money you put in the mortgage, the potential loss for lenders in case you default on your payment decreases.