Getting a mortgage in the UK can sometimes be an uphill struggle; a process littered with obstacles and hoops to jump – and that’s even with the assistance of a good mortgage broker.
However, getting a first-time buyer mortgage is often that little bit trickier, mainly due to property prices eclipsing wage growth, rendering first-time buyer deposits that would once have been regarded as large, as small.
Over recent years, our Guildford mortgage brokerage has seen a surge in first-time buyer mortgage schemes – the First Homes scheme and Deposit Unlock to name but two – designed to help give first-time buyers that much needed leg up on the property ladder.
Yet, given that there were 874,000 first-time buyers in England in 2022-23 – an increase of around 22,000 compared to 2021-22* – there’s still more help needed if the UK is to make sure that those who want to buy their own home, can buy their own home.
So, then – the good news.
The 6x salary mortgage
For years, homeowners and prospective homeowners have made assumptions on their ability to secure a mortgage based on an income multiple of 4. Then, our team of Guildford mortgage brokers watched in surprise as this multiple was boosted to 5 in some cases.
However, as of September 2024, Complete Mortgages’ team of Surrey mortgage advisers can, subject to application and underwriting, get 6 x salary first time buyer mortgages – a product we thought inconceivable as little as a year ago.
There’s no denying the fact that this will help make first-time buyer mortgages more accessible. But let’s take a look at how they work in a little more detail.
Bigger borrowing potential (but there are some considerations)
Whilst our Surrey mortgage brokerage can now access the 6 x income mortgage, there are some stipulations.
Firstly, applicants need a 5% deposit, which, given the increased borrowing capacity, shouldn’t pose too much of an issue. In addition, self-employed income will not be accepted for any of the applicants. However, it’s the length of the mortgage term that may give those interested in applying for a 6 x salary mortgage pause for thought. After all, the new mortgage deal applies to 5 and 10-year fixed rate mortgages only.
These two timeframes aren’t unusually long by general fixed rate mortgage standards; we have many seasoned homeowners taking out some of the UK’s best long-term fixed mortgage deals on a regular basis at the moment. However, for someone just starting out, this may require some consideration.
Of course, as an award-winning mortgage broker in Guildford, it’s our job to help first-time buyers applying for a mortgage weight up the pros and cons and ensure that this new product is right for them.
So, if you’re a first-time buyer who feels that buying a home has just become even more appealing (not to mention more accessible) following the launch of the 6 x salary mortgage, then get in touch.
Interested in applying for a 6x salary mortgage? Contact the Complete Mortgages team on 01483 238280 or e-mail info@complete-mortgages.co.uk.
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