Mortgage lenders are now letting these types of buyers borrow more money
In 2026, many lenders are willing to offer higher income multiples than the traditional 4.5x, allowing borrowers to access larger loans. Factors such as income level, loan‑to‑value ratio, and joint applications influence the maximum amount, while lenders conduct thorough affordability checks. Borro…
For years, first‑time buyers were told that the most they could borrow was about four and a half times their annual income. That rule of thumb is fading in 2026 as a growing number of lenders are willing to lend more, provided the borrower meets certain criteria. The result is a more flexible market, but also a need for careful planning and a realistic view of the long‑term costs involved.
How Lenders Decide How Much to Lend
When a mortgage provider offers a loan, they must ensure the borrower can repay it. To do this, they look at a range of data: income and its source, typical spending, debts and credit history, and the size of the deposit. No single factor alone determines the borrowing limit; instead, lenders use a combination of these inputs to arrive at an “income multiple” – the maximum amount they will lend relative to the borrower’s earnings.
For example, if a lender’s policy caps borrowing at four times income and a borrower earns £40,000 a year, the maximum loan would be £160,000. When two people apply together, lenders add the incomes together. Thus, a couple earning £40,000 and £37,500 respectively could qualify for up to £310,000 if the multiple remains four.
Why Some Lenders Are Raising the Multiple
Traditionally, the industry standard has been a 4.5x multiple. In 2026, however, several lenders are offering higher multiples, especially to borrowers who meet specific conditions:
- Higher annual income – typically over £75,000 or £100,000.
- Lower loan‑to‑value (LTV) ratios – such as 75% or 85%, which require a larger deposit.
- Joint mortgage applications, where combined incomes can justify a larger loan.
Below is a snapshot of lenders and the multiples they currently offer:
- Up to 5x income: Coventry Building Society, Halifax, TSB, Melton BS, Mansfield BS, Newbury BS.
- Up to 5.5x income: Accord Mortgages, Aldermore, Bluestone Mortgages, Gen H, Nottingham BS, Santander, Virgin Money.
- Up to 6x income: Atom Bank, Barclays, Nationwide BS, Bath BS, Gatehouse Bank, Leeds BS, Metro Bank, Precise Mortgages.
- Up to 6.5x income: HSBC Premier Account customers, Tipton BS.
- Up to 7x income: April Mortgages.
What Counts as Income?
Lenders differ in what they accept as income. Beyond a regular salary or self‑employment earnings, they may consider bonuses, commissions, bursaries, stipends, pension payments, lodger income, or even certain benefits. For irregular earners – such as freelancers or those on zero‑hour contracts – lenders calculate income differently. Some average the last three years, while others allow borrowers to exclude an unusually low‑earning year.
Strategies to Maximise Your Borrowing Capacity
While you can’t choose whether you apply as a sole or joint borrower, you can influence two key variables: the LTV ratio and the total income considered.
Suppose you’re buying a £300,000 property with a £40,000 deposit. Your LTV is 87%. Adding another £5,000 to the deposit reduces the LTV to 85%, which may unlock a higher multiple from certain lenders.
Similarly, if you earn £70,000 from a full‑time job but also generate £5,000 from a side hustle, that extra income could push you into a higher bracket. However, you’ll need to confirm that the lender will accept this supplementary income, as it is often seen as less reliable than a regular salary.
Potential Downsides of Stretching Your Borrowing
Borrowing more can give you access to a more valuable property, but it also brings additional costs and risks:
- Higher interest payments over the life of the loan.
- More expensive properties often come with higher ongoing costs such as maintenance and insurance.
- Reduced disposable income for other expenses or investments.
- Increased vulnerability to rising interest rates, as lenders test your ability to afford higher repayments.
While lenders conduct stress tests to ensure you can manage potential rate hikes, it’s wise to perform your own calculations. Your personal view of the minimum cost of living may differ from the lender’s assumptions.
To get a clear picture of what you can afford and to explore the best mortgage options, consider consulting a mortgage broker. Brokers can help you navigate the market, often at no cost to you, and may uncover deals you would otherwise miss.
Remember that investing in property carries capital risk. Past performance does not guarantee future results, and you may receive less than you invested if market conditions change.
What Happens Next?
Borrowers who wish to take advantage of higher income multiples should gather all relevant financial documents, assess their LTV ratio, and identify lenders that align with their income profile. With the right preparation, you can secure a mortgage that matches your property ambitions while keeping your financial health in check.
Why it matters
Higher income multiples mean more borrowing power, allowing buyers to pursue larger or more desirable properties. Understanding how lenders calculate limits helps borrowers avoid over‑extending and manage long‑term costs.
Key points
- Lenders now offer up to 7x income multiples in 2026.
- Income, LTV, and joint applications influence borrowing limits.
- Irregular income may be accepted but requires lender approval.
- Higher borrowing increases interest costs and exposure to rate hikes.
- Consulting a broker can uncover suitable mortgage deals.
- Always consider long‑term affordability before stretching your loan.
Frequently asked questions
What is an income multiple?
An income multiple is the factor a lender uses to determine the maximum loan amount relative to a borrower’s annual income. For example, a 5x multiple on a £50,000 salary would allow a £250,000 loan.
How does LTV affect my borrowing power?
A lower loan‑to‑value ratio means you need a larger deposit, which can unlock higher income multiples and potentially better interest rates.
Can I use side‑hustle income for a mortgage?
Yes, but lenders vary in how they treat non‑regular income. Some may average past years or allow you to exclude low‑earning periods.
What are the risks of borrowing more?
Higher interest payments, increased vulnerability to rate hikes, and less disposable income for other expenses.
