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Mortgages for High-Income First-Time Buyers

Are you keen to own your first property? First-time buyers often find the mortgage application process daunting, so we’re here to help you if you’ve never bought a property before.

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Mortgages for high-income first-time buyers in Berkshire

Typically mortgage lenders are willing to offer mortgages of around 4-4.5 times your annual income when they calculate the size of your mortgage loan.

If you’re a higher earner, and or work in certain professions, however, it’s likely that specialist lenders and potentially a few high street lenders will be happy to offer you a larger multiple of your income.

Professionals, such as doctors, solicitors, vets, and those in similar roles, can often borrow around 5 times their annual income, and those considered high-income earners often more than that.

In fact, high-net-worth individuals can often borrow 6 or more times their annual income when they take out a mortgage.

Whether you’re a professional or entrepreneur, if you’re a higher-income earner looking for first-time buyer mortgages, Simmonds Mortgage Services will assess every deal on the market to ensure you can maximise how much you could borrow.

high income first time buyer mortgages

What classes as higher income?

In the UK, the term high income varies depending on where you live. Whereas £50,000 might be higher income outside of London, you would typically need a much higher income to buy a home in London and its surrounding boroughs.

Mortgage lenders often define higher-income earners as high-net-worth individuals. A high-net-worth individual has a salary of £300,000 or more or liquid assets of £1,000,0000+.

Those first-time buyers with this level of income will typically be able to borrow 6 or more times their annual income, however, not all lenders are able to accommodate mortgage deals of this size.

If you’re looking for first-time buyer mortgages for higher income earners, it’s, therefore, best to use the services of a broker, such as ourselves.

We can not only ensure we approach a lender who will be able to increase how much you can borrow, but ensure you get the most competitive interest rate available to someone in your circumstances.

If you’re looking for first-time buyer mortgages for higher income earners, it’s, therefore, best to use the services of a broker, such as ourselves.

We can not only ensure we approach a lender who will be able to increase how much you can borrow, but ensure you get the most competitive interest rate available to someone in your circumstances.

What records do I need to provide as a high-income earner?

The type of financial records you need to provide when you apply for a mortgage depends on how you earn your income. For a traditional 9-5 salaried job, you will need to provide 3 months’ worth of payslips and bank statements.

If you’re self-employed, you’ll need to provide your accounting history for the most recent 2-3 years, as well as the tax calculations and business bank statements for the same period.

There are some lenders that lend to self-employed applicants with as little as 12 months of trading history, however, this could impact the LTV (loan to value) of your borrowing – the percentage of the total cost of the property you’re able to borrow.

Some lenders will also look at company director income slightly differently, as where most will look at income and dividends, there are some that will also take retained profits into consideration.

How much can a high-income earner borrow for their first mortgage deal?

The amount you can borrow will depend on how much you earn, your credit rating, and how much deposit you have available.

A mortgage calculator can give you an idea of how much you could borrow, but for a more accurate calculation, it’s best to speak to a broker like ourselves.

We can tailor our calculations to your individual circumstances and obtain an agreement in principle from the most suitable lender for you. A strong credit score will provide more confidence and lenders are less likely to limit the LTV (maximum percentage of the property value) of your borrowing.

Those with less healthy credit scores will still be able to find a willing lender, especially if they have a reliable and high level of income, however, they may be offered slightly lower LTV borrowing and a less favourable interest rate.

How much deposit you offer determines the LTV of your loan. This means that on a £500,000 home, a 10% deposit of £50,000 would put your borrowing at 90LTV, as you would be borrowing 90% of the total cost of the property.

If you’re able to offer 25% or more as a deposit, you will achieve a much better mortgage deal.

Mortgage application process
for higher-income first-time buyers in Berkshire

Whether you’re looking for an individual or joint mortgage application, the process is very similar. We will look at all of the mortgage rates available across the market and ensure that you apply for an agreement in principle with the most suitable lender for your circumstances.

The next step is to find a home you love and submit a full application to the lender, with our help, to secure your mortgage offer.

We will take care of organising the valuation of your new home, and deal with the legal and administrative aspects of your application. Once the lender is happy with the property and your supporting documents, you will receive the mortgage offer, and be one step close to owning your home.

After exchanging contracts, we will work with you to get your keys as closely in line with your personal timeline as possible.

Simmonds Mortgages making your first-time purchase unique to you.

Here are Simmonds Mortgage Services, we will ensure that when you apply for a mortgage, you do so with confidence and knowledge.

We will explain what’s happening at each step, and take as much of the stress out of the home-buying process as possible.

We specialise in high-income first-time buyer mortgages, so contact us today with a few personal details and we will make it our mission to find you the best mortgage for your needs.

Most first-time buyers opt for a fixed-rate mortgage, as the monthly mortgage repayments won't change until the end of the deal. However, the type of deal that is best for you will always depend on your individual circumstances and needs.

We will look at which mortgage rates, interest rate types, and repayment types can help you get the best from your home-buying journey.

The average length of a mortgage term for first-time buyers in the UK is 25-30 years.

That said, the longer the term, the more interest you will repay overall, so if you can afford to do so, it can be beneficial to opt for a shorter term.

Of course, you may also be able to extend the mortgage term beyond 30 years, depending on your age at the time of application.

The most obvious answer would be when you're ready to buy a home, however, there are certainly more optimum times to apply for a mortgage. For example, if you're new to the country, or your business is less than a year old, it may be best to wait until you are better able to meet the eligibility criteria of mortgage lenders, which we can advise on.

In most cases, however, so long as you have a strong, reliable income, a good credit history, and a substantial deposit, you will be in a good position to buy your own home.

Some will, it depends on the property value. If your home is valued at £425,000 or below, you will not need to pay stamp duty. If your property value sits between £425,001 and £625,000 you will pay 5% stamp duty on the element above £425,001, but nothing on the first £425,000, as this is classed as stamp duty relief for first-time buyers.

If your property value is £625,001 or more, you will pay the full rate of stamp duty on your entire purchase.

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Get in touch with us by calling 0118 469 3037 for a free chat about your specific circumstances. Let us help you secure your dream home.

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