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Mortgage 5 times salary

When you apply for a new mortgage or a remortgage, it is very likely that you will come across the term ‘mortgage 5 times salary’.

This refers to what is known as an INCOME MULTIPLE which is the lenders calculation for assessing affordability. The most commonly used multiple is a mortgage 5 times salary calculation, which is as it sounds that your income will be multiplied by five.

There are other income multiples that might be available through other lenders which can be higher and can be lower. The most common lender income multiples will vary from between 4 or 4.5 times and 5 times your annual earnings.

In this section (mortgage 5 times salary):

Our panel of carefully selected mortgage lenders offers a range of extremely competitive mortgage 5 times salary deals. You can get expert advice from one of our fully qualified mortgage specialists to find out how much you can borrow.

How does a mortgage 5 times salary work?

Applying for a mortgage can sometimes feel like a minefield because there are so many elements to getting it right.

One of the most significant parts of any mortgage application is the income multiples to assess affordability and get best deals. A very common scenario is a mortgage 5 times salary income multiple, which is to be able to borrow five times your salary/annual income.

It isn’t as simple as multiplying your salary by 5 times and come up with a figure for how much you can borrow.

Some of the key elements to calculating affordability for 5 times salary mortgages:

  • Any other borrowing (e.g. loans, credit cards, and other commitments)
  • Credit history
  • Credit score
  • Source of income (e.g. PAYE, dividend, or second incomes)
  • Expenditure (e.g. bills, utilities, cost of living, etc.)

Most lenders will have their own unique affordability criteria and will apply a different calculation to your circumstances.

You should get proper advice from a qualified mortgage advisor to find out which lender(s) are best for you. The right lender for your situation might make a significant difference to how much you can borrow.

A mortgage 5 times salary will be different from one lender to another and you could borrow more at a lower rate by speaking to an expert.

5 times salary mortgage lenders 2022

There were many changes to lending in 2022 compared to the unprecedented periods of 2020 and 2021. After the mortgage market has settled and lenders were getting back to normal, there was more normality to mortgage lending.

Some of the most common 5 times salary mortgage lenders 2022 include:

  • Accord Mortgages
  • Barclays
  • Halifax
  • Santander
  • Nationwide

There are other lenders who will offer higher multiples than this list of 5 times salary mortgage lenders 2022. Some lenders have been known to offer up to seven times income multiples.

Can I get a 5 times salary mortgage?

There are plenty of options when it comes to applying for a mortgage 5 times salary multiple, so you should be able to get this type of deal.

Some of the main reasons why you might not be able to get a 5 times salary mortgage:

  • Low credit score
  • Poor credit history
  • Complicated income
  • Self employed
  • Insufficient proof of income

If you have struggled to find a mortgage 5 times salary deal then there might be other options that are available to you.

Some lenders still might consider you for this type of borrowing, even though where you’ve been refused previously. You should speak to a qualified mortgage expert if you have struggled to get a mortgage or if you’ve been declined.

Which mortgage lenders offering 5 times salary?

The lenders that are more likely to offer 5 times salary mortgages can change from time to time depending on their lending criteria.

Some high street banks and building societies offer mortgage 5 times salary deals, as well as some more specialist lenders. The right lender for you will vary depending on the lenders criteria and your circumstances.

Mortgage lenders offering 5 times salary deals include:

  • Accord Mortgages
  • Barclays
  • Halifax
  • HSBC
  • Santander
  • Precise

There are also several lenders that offer mortgages with no lending limits which are more specialist, including:

  • Livermore Capital
  • Market Harborough Building Society
  • Penrith Building Society

For the best 5 times salary mortgage lenders you should contact us and speak to one of our team of fully qualified experts. We work with over 50 carefully selected mortgage lenders and we have thousands of deals for you to choose from.

How much can I borrow?

There are several main factors that will determine how much each person can borrow and every lender has their own criteria for this.

An affordability calculation will be applied to your income and expenditure which will be based on a number of elements. A lender will assess your application based on the evidence that they require, including:

  • Bank statements
  • Payslips
  • P60
  • Accounts
  • Accountant reference
  • Credit report

Your borrowing will be calculated by the lenders based on the evidence and the income multiples that they apply.

Simply by choosing the right lender, you can add a significant amount to your borrowing potential. You can also save money every month on the mortgage repayment by getting the lowest interest rates for your situation.

Self employed mortgage 5 times salary

There are a number of key differences between a self employed mortgage 5 times salary and a similar application for someone who is employed.

Most mortgage lenders will have specific criteria and requirements for assessing a self employed mortgage application. Usually, each lender will have similar requirements in terms of the proof of income that they need such as:

  • Bank statements to show the amounts being paid in to your accounts over a period of several months
  • Business accounts for the past two or three years to prove that your business is stable and profitable over that period
  • Accountants reference which is also a way for a lender to be able to evidence that you have consistent and reliable income
  • SA302’s are also often used by lenders as part of the income assessment for self employed mortgages

Often with self employed mortgages 5 times salary deals, you’ll need to show your income is stable over a period of two or three years. Lenders will be looking for any red flags in your trading history over that period, such as:

  • Business loans
  • Seasonality
  • Large business purchases
  • Abnormal transactions
  • Periods of low or no income

Most lenders will be happy to accept an application for self employed mortgage 5 times salary deals. You can save significant time and money by getting the right deal from the most suited lender based on your circumstances.

Mortgage 5 times salary advice

There are a lot of mortgage products and lenders available, and the mortgage type you need could affect the income multiples offered to you.

Our team of expert mortgage brokers have years of experience with all mortgage types including joint mortgages, buy to let mortgages, first time buyer mortgages and many more.

Our team are familiar with all the necessary steps to getting a high value loan and specialise in this area as well as high income mortgages and more. Speak to our highly qualified advisors for advice on how to borrow 5 times your salary for your next mortgage deal.

Useful resources

The Guardian – Supersize mortgages: can you get one, and what are the dangers?

Citizen’s Advice – Buying a home

Gov.uk – How to buy a home

Finder.com – The average UK mortgage size, payments and debt

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