For most of the market, lenders will offer a maximum of 4.5 times a borrower’s income. Recently, some lenders have raised this to 5 or 5.5 times a borrower’s income, although this tends to be in exceptional cases for individuals who are not high-net-worth individuals but who have higher salaries. Lenders base the 4.5 times your salary calculation on what they believe most borrowers can comfortably afford in terms of repayments and limiting risk for all parties.

For high-net-worth individuals, there is more flexibility around what you can borrow, often with less emphasis on specific multiples of your income, provided the mortgage is clearly affordable. High-net-worth mortgages are available to anyone with an income of more than £300,000 or assets of more than £3 million (excluding the value of your principal residence). If you are eligible for a high-net-worth mortgage, you effectively opt-out of regulated oversight, which means lenders have much more flexibility in what they can offer you, affordability and so on. These mortgages are advantageous if you have significant wealth but comparatively little income, global assets, multiple income streams and so on. Overall, a high-net-worth mortgage makes it easier to borrow more based on your global wealth rather than your income in exclusivity.  

Some first-time buyers can put down deposits of 10% – 15%, but generally deposits sit in the 20% – 25% range, especially if you are already on the housing ladder or are looking to upsize. 

If you are borrowing a significant amount, a lender may require you to put down a larger deposit. A lender may let you put less down in other cases, but this will tend to be for VIP borrowers and those with a very high income in combination with a significant net worth. Some private banks offer 100% mortgages if you can put forward relatively significant assets under management, for example. It is worth noting that sometimes, you may find it advantageous to put down a larger deposit if it means you benefit from better rates in the long-term – your broker will be able to explain your options on this.

LTV stands for loan-to-value. The loan-to-value ratio refers to how much you borrow as a percentage of the property’s value. Amongst other things, lenders use the LTV to assess risk – generally, the higher the LTV, higher the risk for the lender. 75% or 80% LTV is usual for the majority of mortgages, although some lenders offer higher LTV mortgages for the right borrowers – usually high-net-worth individuals.