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5.5x Income Mortgage for First-Time Buyers Borrowing £1 Million – 1st June 2021


We were approached by our clients who urgently required a mortgage offer within 2 weeks as per their offer conditions.


Getting the loan approved quickly was also key to give the buyers any chance of completing before the end of stamp duty holiday in 4 weeks.



Banks and surveyors were extremely busy due to record breaking business levels so getting mortgage approval within 2 weeks was the first difficulty.


Secondly, the clients required a loan which was 5.5x their joint income with a 15% deposit available. This was challenging as the majority of high street lenders restrict borrowing to 5 x income.



Magni Finance specialise in arranging mortgages above £500,000 therefore the broker efficiently found a high street bank who could lend 5.5x to high earners. In this case, both applicants were paid a salary and annual bonus. The bank were able to factor in 100% of the bonus income which maximised the amount they could borrow.


Due to the urgency, the broker prioritised the application and submitted the case the day after being contacted by the clients. Luckily, a desktop valuation was carried out which meant a physical valuation was not required, saving valuable time and the offer was issued within just 1 week.


Key figures:

Property value: £1.2 million

Loan amount: £1 million

LTV: 85%

Repayment type: Capital repayment

Product type: Fixed rate

Interest rate: 2.32%