Mortgage question

There are a couple of issues for a lender that I can think of offhand in your case, which of course centre around the risk they are taking by doing this.

One is loan-to-value, i.e. what percentage of the asking price are they lending. 5 times may well be doable, but if you're borrowing 95% of the purchase price and you then can't afford the payments, there's little chance they'll recoup all the loan if they have to repossess as a result. The costs of a forced and distressed sale might swallow 20 or 30% of the price, leaving them short. If you're borrowing 60%, OTOH, then there is a much better chance they could recover in that event, barring some disastrous market meltdown.

Another concern is whether you can afford the repayments if rates go up. Lenders may require you to take a fixed rate mortgage if you are after a high salary multiple.

Then of course there's credit history.

So in brief, the major differences versus a lower multiple will likely be that they want you to (a) put down a bigger than usual deposit and (b) accept a higher than usual fixed interest rate.

They may also require you to pay for a MIG and perhaps take out MPPI cover too.

Try a broker. From recent (December) personal experience, I would recommend London & Country. They don't charge you, only the lender. Brokers will not only know who does this, but may also have access to deals you can't obtain directly.

Hi Seemd The highest income multiple will depend on your income, credit score, size of deposit available, and the type of mortgage product selected. For instance if you were earning £35,000 had a high credit score, and a 5% deposit you could achieve 5.6 time income. If your income were below £25,000 with a high credit score then 4.3 is likley to be the maximum. There are so many variables that you would be best talking through your requirements with an Independent Mortgage Broker.

At the moment, I would seriously re-consider the wisdom of borrowing @5.6x, unless one's income is guaranteed to rise substantially or there is going to be a guaranteed injection of capital in the near future.