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Home owners willing to stretch themselves, says mform

More than 3.7 million potential mortgage customers would be happy borrowing 5 x their salary or more, research from shows.

Around one in 12 people who plan to apply for a mortgage in the next three years say they’d be happy borrowing at that level.

And the data shows as many as 1.38 million of those people would be willing to risk taking out mortgages worth 6 x or more their salary. says the findings indicate the desperation of many would-be home owners to clamber on the property ladder and follow predictions from government body the National Housing and Planning Advice Unit that homebuyers could face house prices of 10 x their income. is urging all mortgage customers to be careful when applying for a new home loan and to focus on the true cost of their mortgage so they find a deal that is affordable.

Eamonn Rice, chief executive at, says: “Borrowing 5 x or 6 x your salary would have been unthinkable just a few years ago.

“But with average house prices pushing well past £200,000 it is understandable that people are becoming more willing to borrow more.

“They’ve seen house prices continue to increase despite predictions that the housing boom is set to end in a bust.

“And it is the case that the old days of mortgage customers only borrowing a maximum of three times their salary are long gone.

“The mortgage industry itself has recognised this with more and more lenders willing to consider higher income multiples and longer repayment terms.

“Lengthy mortgage terms could quite easily become the norm with people potentially only repaying the capital from the ultimate sale of the property

“However there are still major risks involved in borrowing 5 x of 6 x your salary.

“Customers need to ensure they are receiving the best possible deal and that repayments are affordable. There is no point getting on to the property ladder only to have your house repossessed.”


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