7x Income on Longer-Term Mortgages

A new mortgage offering is set to shake up the market, allowing borrowers to access loans worth up to seven times their household income. This deal, available for a limited time, targets those opting for long-term fixed-rate mortgages of 10 to 15 years, with a maximum loan-to-value (LTV) ratio of 85%. To qualify, borrowers must have a combined household income of at least £50,000.

The offer significantly exceeds the standard regulatory borrowing cap of 4.5 times income, enabling eligible applicants to borrow an additional £125,000 on a £50,000 annual income. For example, a household earning £50,000 could potentially secure a mortgage of up to £350,000, compared to £225,000 under the standard limit.

This is good news for

• Remortgaging Homeowners, as mortgage rates increased, borrowers may need to stretch their income to remortgage.
• First Time Buyers trying to buy their first home.

This increased borrowing power is open to a wide range of applicants, including first-time buyers, homemovers, and both employed and self-employed borrowers. The deal also comes with flexible features, such as no early repayment charges (ERCs) for those moving home and uncapped overpayments, giving borrowers greater control over their mortgage.

However, this high-income multiple offering is a short-term opportunity. Regulatory restrictions limit lenders to allocating only 15% of their mortgage book to loans exceeding the 4.5x income cap, meaning availability may be constrained.

This move is likely to attract significant interest from those looking to maximize their borrowing potential, particularly in a competitive housing market. Borrowers are encouraged to act quickly to take advantage of this unique affordability boost while it lasts.

These Mortgage products are available only through a select few Mortgage Advisers, unavailable direct to the lender and unavailable to the majority of the mortgage intermediary market.

Landlords, the mortgage lender does not accept rental income from mortgaged or mortgage-free properties.