Can First-Time Buyers Borrow 6 Times Their Income?

House prices have made it hard for many first-time buyers to borrow enough. Most lenders cap borrowing at around 4.5 times income, but a growing number of lenders will now go to 5.5 or even 6 times income for some buyers.

Who can borrow 6 times their income?

These deals are not for everyone. Each lender sets its own rules, but you will usually need some of the following:

• A higher income, often above a set minimum
• A clean credit history
• A deposit that meets the lender’s minimum
• A job in certain professions, or a steady employment record
• Low other debts and outgoings

Lenders still check that you can afford the payments if interest rates rise, so a higher income multiple does not always mean you can borrow the maximum.

Is borrowing more a good idea?

Borrowing more can help you buy sooner or get the home you need. But a bigger loan means higher monthly payments and more interest over the term. It is worth thinking about how the payments would feel if your costs went up or your income changed.

How we can help

Criteria change often and each lender works things out differently. Our advisers can check which lenders might offer you a higher income multiple and whether it is right for you.

See how much you could borrow, read our first-time buyer guide or call us on 01332 300300.

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