Recent changes across the mortgage market mean some lenders are now offering higher mortgage borrowing limits than in previous years. In certain cases, eligible borrowers may be able to borrow up to six times their gross annual salary, which is a notable shift from the traditional 4 to 4.5 times income that many buyers are used to.
This development has been widely reported in national media, including coverage referencing lenders such as NatWest, Barclays and Nationwide expanding their loan-to-income multiples for qualifying customers. The move reflects ongoing affordability challenges, with lenders adjusting criteria to help buyers access larger loans in a market where property prices remain high.
Understanding how these higher mortgage borrowing limits work can provide useful context for anyone reviewing their options in the current housing market.
Why higher mortgage borrowing limits are being introduced
For many years, most lenders capped borrowing at around four to four and a half times annual income. While this still applies to many applications, lenders have gradually begun to increase their maximum loan-to-income ratios for certain borrowers.
Recent reporting indicates that some banks and building societies are now willing to lend up to six times income in specific circumstances. According to coverage from the Birmingham Mail, lenders including NatWest, Barclays and Nationwide have introduced higher loan-to-income products aimed at customers who meet strict affordability criteria.
The introduction of higher mortgage borrowing limits reflects several key factors:
Property prices continuing to outpace wage growth
Increased competition between lenders
Adjustments to regulatory guidance allowing flexibility
A focus on helping borrowers with strong incomes or deposits
While not every applicant will qualify, the shift highlights how lending criteria are evolving.
How the new borrowing multiples work
When lenders talk about lending up to six times income, they are referring to the maximum loan-to-income (LTI) ratio. This is calculated by multiplying a borrower’s gross annual salary by a set figure.
For example:
A borrower earning £60,000 could potentially borrow up to £360,000 at six times income.
A household earning £90,000 combined could potentially borrow around £540,000 if they met all criteria.
However, these figures represent upper limits rather than guaranteed amounts. Even with higher mortgage borrowing limits available, lenders still apply affordability checks. These typically include:
Monthly income and spending
Existing debts
Credit history
Deposit size
Stress testing against higher interest rates
As a result, the amount someone can borrow may be lower than the maximum headline multiple.
Which borrowers may qualify
The availability of higher mortgage borrowing limits is usually restricted to borrowers who meet certain requirements. These often include:
Higher minimum income levels
Larger deposits
Strong credit history
Stable employment
Evidence that repayments remain affordable
Some lenders require a single income of around £75,000 or a joint income of £100,000 or more before considering six times income lending. Others may set different thresholds depending on the product.
These criteria are designed to ensure lending remains responsible, even where income multiples are increased.
Why lenders are adjusting criteria
Rising house prices
One of the main reasons for higher mortgage borrowing limits is the gap between earnings and property prices. In many areas, traditional borrowing multiples no longer allow buyers to purchase homes that meet their needs.
Market competition
Lenders compete to attract borrowers, particularly those with strong financial profiles. Offering higher income multiples can make products more appealing to buyers who might otherwise struggle to borrow enough.
Regulatory flexibility
Changes to lending rules have given lenders some room to increase loan-to-income ratios, provided they maintain responsible affordability checks. This allows them to support borrowers while still managing risk.
Important considerations
While increased borrowing limits can improve purchasing power, they also come with considerations. Borrowing more relative to income can lead to higher monthly repayments and greater exposure to interest rate changes.
Even where higher mortgage borrowing limits are available, lenders assess whether repayments would remain manageable if rates increased. This is known as stress testing and is a key part of the application process.
Borrowers may also want to think about:
Long term affordability
Future changes in income
Household expenses
Financial goals
Higher borrowing capacity does not necessarily mean borrowing the maximum is always suitable.
How this compares to traditional lending
Despite the introduction of higher mortgage borrowing limits, most mortgages are still based on traditional income multiples. Many applicants will continue to be offered around 4 to 4.5 times their annual income, depending on circumstances.
The newer six times income options are typically reserved for borrowers with strong financial profiles or higher earnings. They represent an additional option rather than a complete shift across the entire market.
Some lenders have also introduced similar products for specific professions or high earning customers, though these remain niche offerings.
What this means for the market
The introduction of higher income multiples highlights how the mortgage market is adapting to changing conditions. With property prices remaining high relative to earnings, lenders are looking at ways to support borrowers while still maintaining affordability standards.
As competition continues, higher mortgage borrowing limits may become more widely available, though they are likely to remain subject to strict criteria. Buyers may see more variation between lenders in terms of how borrowing capacity is calculated.
For many people, understanding how income multiples work is an important part of planning for a home purchase or move. Borrowing limits depend on individual circumstances, and lenders assess each application carefully.
Lenders Are Responding to Affordability Pressures
The emergence of higher mortgage borrowing limits shows how lenders are responding to affordability pressures and changing market conditions. While the possibility of borrowing up to six times income exists for some borrowers, it is not universal and remains dependent on strict criteria and affordability checks.
As lending criteria continue to evolve, awareness of how borrowing limits are calculated can help provide a clearer picture of what may be possible in today’s mortgage market.
