In this brief blog post, we will cover getting a mortgage for 3.5 times your income, whether this may be the most suitable mortgage option for you and how to get a 3.5 times income mortgage.

When looking to get a mortgage, the mortgage lender will usually give you an indication of the maximum they may be able to lend to you with a mortgage multiple also commonly known as an income multiple.

mortgage multiples of around 3.5 and 4 are common but anything above this is rare and will require the very best circumstances for mortgage multiples of 5 times your income and above.

There are mortgage lenders that may be willing to offer mortgages with 3.5x income and most of these mortgage lenders may not require you to have a great credit score and a substantial mortgage deposit before they loan to you.

Yes, you may be able to find mortgage lenders who will borrow you a mortgage for 3.5 times your salary but these mortgage lenders may only offer 3.5 times income mortgages when the circumstances are perfect.

If you are looking for a mortgage lender who will borrow you a mortgage of 3.5 times your salary then you may want to speak to a mortgage broker who may be able to assist you.

FCA regulations limit mortgage lenders from offering more than 15% of their mortgages at mortgage multiples of more than 4.5.

This means that 3.5 times income mortgages are much easier to come by and the mortgage lenders who offer them willmostly by high street mortgage lenders.

If you are a doctor, investment banker, surgeon or similar profession then you may find that getting a 3.5 times income mortgage may be within your reach.

You may also be able to get a 3.5 times income remortgages.

Typically most mortgage lenders will offer you a mortgage for around 3 and 4 times your salary.

To increase how much you may be able to borrow you may need to put down a bigger mortgage deposit and likely have a very good credit score.

By using a joint mortgage you can combine your borrowing power and essentially increase how much a mortgage lender may be willing to lend you individually.

Some mortgage lenders will let up to 4 people get a joint mortgage whilst others will require that joint mortgages are only taken out by a maximum of two people.

You may be able to get a 3.5 times income mortgage as a joint mortgage if you both meet the mortgage affordability requirements of a mortgage lender who offers 3.5 times income mortgages.

If you are unable to get a 3.5 times income mortgage you could still improve the amount of mortgage you are able to borrow by getting a joint mortgage with the maximum amount of people and combining your salaries together.

Because mortgages for 3.5 times income are not rare you may find that the mortgage rate is competitive.

You should consider if saving a bigger mortgage deposit or waiting until your income increases is a better choice than getting a 3.5 times income mortgage.

You may also be able to use a host of first-time buyer and home mover government schemes to increase your mortgage deposit rather than getting a 3.5 times income mortgage.

Some of these schemes include:

  • Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
  • Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
  • Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
  • Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
  • Right to buy- allows you to buy your home at a discount price.
  • Preserved right to buy- same as above.
  • Right to acquire- same as above.

Depending on where you live, you may also be able to take advantage of home buying schemes provided by your local council. Example: In Norwich, the local councils provide the Norwich home options scheme.

3.5 time income mortgages dont usually have high early repayment charges which make them harder to remortgage. Even though you can port the mortgage, this may not necessarily be the best financial option for you.

3.5 times income mortgages are only usually available to prospective mortgage borrowers with little mortgage deposits and typical salaries.

If you want to get a 3.5 times income mortgage then you may want to speak to a specialist mortgage broker who may be able to assist you in finding the best 3.5 times income mortgage options.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.