Can A Mortgage Broker Help You Borrow More?

 

The team at Quealy & Co Financial Services are witnessing some mortgage lenders increasing their income multiples to 5-5.5 times income, a rise from their previous offers. Interestingly, there's talk that one lender might even reach an income multiple of 7x income.

Lenders generally cap the mortgage amount based on a multiple of your annual income. They will also look closely at your expenditure when deciding how much to lend. Understanding their assessment process and finding ways to boost your borrowing potential is crucial. This article will assist you in understanding the process. If you have any questions, please do not hesitate to contact our friendly financial services team here at Quealy & Co.

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What Are Mortgage Income Multiples?

A mortgage income multiple is a straightforward method that lenders use to calculate the maximum home loan you can afford, using your annual income as a baseline.

For example, if you earn £40,000 annually and a lender applies a multiple of 4.5, they’d consider offering a maximum loan of 4.5 times £40,000 – that's £180,000.

Previously, these income multiples were quite rigid in mortgage offers. Nowadays, lenders are taking a more holistic approach when assessing how much you can genuinely afford.

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How Will A Lender Assess Mortgage Affordability?

The income multiple method is widely used, but lenders have their individual approaches. Many offer 4.5 times your annual income, although some are willing to increase those multiples under certain conditions:

• 4.5x your income: Standard for most borrowers and lenders.
• 5x your income: Possible with specialist lenders, particularly if you have a strong credit score and little debt.
• 6x your income: Attainable in some cases, such as for high earners. If you use a broker such as Quealy and Co., we’ll be able to help you maximise your borrowing potential with our knowledge of lender affordability criteria.
• Lenders will also look at your outgoings when assessing how much to lend, so try to keep those to a minimum.

At Quealy & Co, we specialise in uncovering these opportunities by working with various lenders to maximise your borrowing power, tailored to your personal circumstances. Our brokers excel in finding lenders who evaluate more than just your basic salary, factoring in bonuses, commissions, and other income sources.

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Can A Mortgage Broker Secure Higher Income Multiples?

Income multiples might feel restrictive, especially if your earnings aren’t high, leading to concerns about qualifying for your desired mortgage. This is where a broker steps in to help by reviewing your income, including additional sources like overtime, bonuses, and benefits, to expand your borrowing range.

Brokers skilled in higher income multiples connect with lesser-known lenders and can guide you to the best deal, saving you time and money.

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Finding The Right Mortgage With Quealy & Co

Maximising how much you can borrow is vital for planning your next home purchase or remortgage. While many lenders stick to standard income multiples, higher multiples are available, and an experienced broker can help you with that.

At Quealy & Co Financial Services, our brokers explore the whole market, even partnering with specialist lenders who offer more flexible borrowing criteria. Whether you're aiming to exceed standard limits or need advice on complex income matters, our team is here to help you secure the right mortgage tailored to your needs.

Reach out to a Quealy & Co mortgage expert today to explore your options and start your journey toward securing your dream home. We offer advice with no broker fees.

Call us: 01795 505761⁠
Email us: mortgages@quealy.co.uk

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

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Quealy & Co Financial Services Ltd. is authorised and regulated by the Financial Conduct Authority No. 919693