Accord mortgages have announced that they will be making it easier for people to borrow more than 4.49X their income as a mortgage. The standard borrowing amount for most people looking to get a residential mortgage is between 4X and 4.5X income, with lenders offering lower if you have lots of outstanding debt, dependants, or less than perfect credit history for example. However, mortgages over 4.49X salary are achievable with lenders, but many have minimum income requirements and other rules that you must meet to achieve such lending.
Accord Mortgages Make Changes To Their Minimum Income Requirements
Accord mortgages, an intermediary only accessed lender, is know for being a common sense lender who are willing to be more flexible on their lending criteria and give a more sensible and carefully considered answer when it comes to lending. Accord, like many lenders, do not actually have a minimum income that a client must earn in order for them to lend to them. Meaning that if you went to Accord only earning £10,000 a year, you could still potentially get a mortgage. However, the absolute maximum mortgage available to you would be 4.49X your income (£44,900).
How much exactly you might be entitled to borrow depends entirely on your own financial status and how much deposit you are able to put down. Accord specifies that you must put down at least 5% deposit to get a mortgage through them.
Accord Lowers Minimum Income Requirements For Over 4.49X Income Loans
Accord is one of the very generous UK mortgage lenders that can potentially lend over 4.49X a borrower’s income as a mortgage, as long as they meet the right criteria. For the longest period of time, Accord insisted that if you want to borrow over 4.49X salary then you must earn at least £70,000 a year. But, recent changes announced today say that Accord have now lowered this figure to a minimum of £60,000 a year. This can also be on a joint application basis, so you can either earn £60,000 a year on your own or with someone else, both earning a combined income of £60,000.
Accord have specified that people borrowing a 90% LTV or below mortgage (10% deposit or more), and earn £60,000 a year or more, you can potentially borrow up to a 5.5X income mortgage. For any higher LTV mortgage (95% – 5% deposit), then the absolute maximum you can borrow is still 4.49X income.
So, let’s look at some examples using Accord’s affordability calculator.
Borrow 5.5X Income Mortgage
A potential borrower earning £59,000 a year, with no credit commitments at all and taking the mortgage for as long as feasible, could potentially borrow around £265,000 on their own with Accord. Or split between two borrowers earning a combined income of £59,000.
A potential borrower earning £60,000 or more a year, with no credit commitments at all and taking the mortgage for as long as feasible could potentially borrow between £269,400 (4.49X income) and up to a maximum of £330,000 (5.5X income). Or split between two borrowers earning a combined income of £60,000, depending on full mortgage affordability checks.
Speak To a Mortgage Advisor About Borrowing a 5.5X Income Mortgage
If you are looking for that little bit extra mortgage borrowing and you think that you might meet the right criteria for a 5.5X income mortgage, please feel free to give our London based mortgage experts at Oportfolio Mortgages a call. We are here to help, and an initial mortgage consultation over the phone or in person is completely free of charge.