Research from mform.co.uk showed that one in 12 would borrow five times their salary in order to get a mortgage, with a total of 3.7 million claiming that they would be happy to borrow five times their salary, or possibly more. The research also indicated that 1.38 million of those people would consider taking out a mortgage worth six times or more of their salary.
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The firm urged applicants to be careful when applying for a home loan and to be aware of the credit risks involved in mortgage repayments, and the possible repercussions if they are unable to keep up repayments.
Eamonn Rice, chief executive of mform.co.uk, said: “Borrowing five times your salary would have been unthinkable a few years ago but with house prices pushing well past £200,000 it’s understandable that people are willing to borrow more.
“The industry itself has recognised this with more lenders willing to consider higher income multiples and longer repayment terms.”
Tom Marinan, a broker at Easypay mortgages, said: “When lenders offer 100 per cent mortgages the income multiples do go down, but the problem is people are not sure what their repayments are and brokers will often open their eyes as to what they will be paying back.”
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