How to get a bigger mortgage

How to get approved for a higher mortgage loan

If your credit rating is good and you’re putting down a bigger house deposit, you may be able to get a mortgage loan of 5 times your salary. Or, if you earn over a certain amount or have a job in a professional role (think doctor or solicitor) or a ‘blue-light’ role (think paramedic or police officer), you may be able to qualify for a higher lending scheme, letting you borrow up to 5.5 times or even 6.5 times your income.

But these schemes tend to have stricter eligibility criteria, making them harder to qualify for. Working with a mortgage broker can help you see if you are eligible for any enhanced borrowing schemes, or ways you can boost what you can borrow.

What types of income do lenders accept?

Having a reliable salary can be really helpful when applying for a mortgage, but lenders will consider other forms of income too. These are the most common types considered:

  • Basic salary income
  • Self-employed income
  • Child benefits and working tax credit
  • Pension income
  • Rental income from a buy-to-let property

Do mortgage lenders take bonuses into account?

Some lenders will include commission, overtime or bonuses into their mortgage calculations. But since these types of income aren’t always guaranteed, and can fluctuate from one month to the next, most lenders won’t accept 100% of that commission. You’ll also need to evidence that it’s not a one-off, by showing that additional income coming in over a longer period of time.

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What else will lenders take into account?

Mortgage lenders will also check that you can afford the loan alongside your other responsibilities. They’ll look at your bills, debt payments, and monthly expenditure. Their checks might also include:

  • Council tax
  • Utilities
  • Phone contracts
  • Student loan payments
  • Transport costs
  • Childcare
  • School fees
  • Car finance
  • Credit card bills

How to get a bigger mortgage

There are a few ways you can get a bigger mortgage, even on a low income. As well as ensuring your credit score is immaculate and you’ve paid off any debts, the two most common ways to get a bigger mortgage are to increase how much you put down for a house, or to increase the total income which your mortgage affordability is based on.

You can increase the size of your deposit yourself by saving more, but this can take a number of years. In fact, on average it takes someone 8 years to save up for a house deposit. It’s not surprising that over half of first time buyers rely on family support to speed up getting their first home.

However, for a lot of families it’s simply impossible to give large lumps of cash to their children to help them get on the ladder. This is where Deposit Boost comes in. Deposit Boost involves unlocking equity from a friend or family member’s home and putting it towards your deposit.

This gifted deposit can be used to top up what you already have, or it can make up your whole deposit. With a larger house deposit, not only will you be able to borrow more, but you can access better mortgage deals. In fact, our data shows that you could save on average £17,000 over 5 years by accessing lower interest rates.

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