26 November 2018

Professionals can borrow six times income via new building society mortgage

Darlington Building Society has launched a new professionals mortgage range, lending up to six times an applicant’s salary for accountants, engineers, doctors, solicitors and vets.

While lending six times income may start to ring alarm bells in some quarters, it is worth noting that the Darlington proposition is aimed at professionals. This demographic can expect significant income growth, particularly in the earlier stages or years of employment when they need most help getting on the housing ladder. So six times income at outset may fall below say 4.5 times income after five years in the job, for example.

Darlington is one of several building societies to offer mortgages at six times income. In some circumstances some building societies will exceed six times income, providing the affordability model is met. This is not reckless lending.

If a borrower is earning well and with relatively little expenditure (whether professional or not), can demonstrate affordability and pass the associated stressing, then it is hard to argue why they shouldn’t get a higher multiple. However, as with any mortgage, it is important to seek professional advice to ensure you get the right deal for your circumstances or it could end up costing you in the long run.

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