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First-time Buyer

Lender offers six times income mortgages

Lana Clements
Written By:
Lana Clements

Darlington Building Society is lending up to six times an applicant’s salary with its latest range of mortgages.

The society’s ‘professionals mortgages’ are available to workers in specific industries, including accountants, barristers, engineers, doctors, solicitors and vets.

Clydesdale Bank offers mortgages of up to 5.5 times income.

The average loan to income has steadily crept up in recent years, according to the latest UK Finance data.

Home movers now borrow a typical 3.45 times income, compared to 3.39 a year earlier.

And first-time buyers borrow 3.68, up from 3.61 in the 12 months previously.

Caroline Darnbrook, Darlington’s director of products and marketing, said: “We wanted to launch this exciting proposition to help professionals get on the housing ladder and move into their own home at a time to suit them.

“We provide an increased multiplier on salary to acknowledge the earning potential of these individuals and wanted to get them into their homes sooner.

“We have included engineers in our offer as this is something that is a strong part of our culture in the North East and we have good knowledge and experience of people working in this field.”

All applicants must be qualified, practising and registered with the appropriate industry body.

The society will look at current salary plus an assessment of future earnings, with a maximum LTV of 90%.

Rachel Springall from Moneyfacts said: “The reason why banks can defend offering inflated income multiples for professionals on mortgages is that as a borrower, they are typically seen to provide more security with the ability to pay. Strictly speaking, professionals have more opportunities of a structured pay rise and mortgage underwriters will look for the period of employment and make background checks before they lend.”