Property Expert: Why New Mortgages At 7 X Salary Could Help Unlock Home Ownership 

A mortgage deal which allows buyers to borrow seven times their salary could be the start of a new wave of products entering the market.

That’s the view of one of the UK’s leading property experts who thinks the package by April Mortgages could be particularly good news for first-time buyers.

Sam Fox, the founder of the UK Mortgage Centre, said: “Whenever packages like this arrive on the market, there can be concern from some that those taking them out might risk overstretching themselves.”

“It’s vital that buyers, especially those entering the market for the first time, always think very carefully about affordability.”

“But this new mortgage income multiple deal underlines the desire for lenders to support the growth of the housing market. Ultimately, I believe it could help unlock homeownership for many living in the UK.”

Outlining the current challenges in the market, Sam continued: “We know affordability has been challenging and the rising cost of house prices has made it near impossible for some to own a home. Although the Government has committed to a house-building scheme, this is unlikely to bear fruit for many years.”

“There are also question marks over whether Ministers will be able to overcome the planning hurdles that exist in delivering an ambitious national house building programme.”

“So, we will rely heavily on the market coming up with new ways which aim to stimulate purchases in the short term, which will help people fulfil their first-time buyers dream of home ownership.”

“This new seven times your salary multiplier could be the start of a wave of new mortgage products offered by lenders designed to boost first-time buyers getting onto the property ladder.”

April Mortgages, which launched its first products a year ago, says it is making the increased borrowing available to first-time buyers, home movers and those looking to remortgage.

It’s seven times income, multiple mortgages are open to both single and joint applicants earning at least £50,000 a year.  Customers will need to fix their mortgage for 10 or 15 years to benefit from the higher multiples, but unlike shorter fixed rate deals, there are no early repayment charges for moving home or when repaying in full.

Here, mortgage expert Sam shares his affordability advice to anyone looking to take out a mortgage:

• Factor in All Costs: Besides the mortgage itself, budget for council tax, home insurance, utilities, maintenance, and potential leasehold fees. These can add hundreds of pounds to your monthly outgoings.
• Build an Emergency Fund: Before committing to a mortgage, try to have at least 3-6 months’ worth of living expenses saved. This safety net helps cover any gaps in income or unexpected costs.
• Use a Mortgage Broker: A broker can help you navigate different deals and lender criteria, ensuring you don’t end up with a mortgage that’s unaffordable or unsuitable in the long term.
• Be Honest on Your Application: Don’t overstate your income or underplay your outgoings to get a bigger loan. Lenders cross-check your finances closely, and misrepresentation can lead to rejection or future financial strain.
• Loan Terms: Opting for a longer mortgage term will reduce your monthly repayments. However, if you choose to do this, then you will end up paying more in interest over the full mortgage term.