6.5 x Income Remortgages | How Can You Get One

Let’s Talk Money and Mortgages

Introduction

Gemma: Hello and welcome back to our channel and podcast! My name is Gemma, and here at WIS, we talk about money, mortgages, and positive money mindset.

If that interests you, be sure to subscribe and hit the thumbs up to support us and ensure you don’t miss any videos.

Today’s episode is all about borrowing six and a half times your income on a remortgage.

We are joined by Ifthi, a trained accountant and mortgage advisor with over 11 years of experience, and one of the founding directors at WIS.

Welcome back, Ifthi! How are you?

Ifthi: Hi, I’m very well, thank you.

Gemma: I’m very good, thanks!

Q1: What is a loan-to-income ratio?

Ifthi: A loan-to-income ratio (LTI) compares the loan you can borrow to your income.

In simple terms, it shows how many times your income you can borrow.

Example: If you earn £10,000 and a lender allows you to borrow five times your income, your loan-to-income ratio is 5x.

Gemma: So in layman’s terms, it’s simply how many times your income a lender will let you borrow.

Ifthi: Exactly!

Q2: What are the standard loan-to-income ratios?

Ifthi:

Typically, if you don’t have significant financial commitments and are under 45 years old, most lenders allow up to 4.5 times your income.

Some lenders may go slightly higher (4.75–5x), but 4.5x is the standard maximum for most.

Q3: What is the new 6.5x income remortgage product?

Ifthi:

This is exciting news because it allows borrowers to access higher LTI ratios on remortgages.

Previously, if your LTI ratio was capped at 4.5x, you may not have qualified for some lenders.

Now, with 6.5x, you have more options and better chances of securing a mortgage, especially if your income has dropped or you’ve gone part-time.

Gemma: So this helps people on remortgage deals, giving them access to better products and rates.

Ifthi: Exactly! In the past, lenders were slower to offer higher LTIs on remortgages, but this is a positive step for consumers.

Q4: Who will this product help?

Ifthi: This product is especially useful for:

Like-for-like remortgages:

• If your current mortgage is £100,000, you can borrow the same amount.
• It does not allow extra borrowing for renovations or extensions.

Borrowers with reduced income:

• Self-employed individuals may have fluctuating income.
• People who have gone part-time or reduced hours can still qualify due to the higher LTI ratio.

Gemma: So it opens doors for people who may have previously been limited by income restrictions.

Q5: What are the exclusions and limitations?

Ifthi:

Currently, this product is only available for like-for-like remortgages.

Not available for additional borrowing, such as house renovations or extensions.

Limited availability: only one mainstream lender currently offers it.

Gemma: So while it’s a great option, it’s not open to everyone yet.

Q6: Are there other lenders with high LTI ratios?

Ifthi:

Yes, other lenders may offer up to 5–5.5x income, but not necessarily 6.5x.

An advisor can help identify lenders suitable for your situation.

Gemma: So speaking to an advisor is important, especially if you need to borrow more than usual.

Ifthi: Exactly. We know which lenders work for different borrowers and can help navigate limited options.

Conclusion and Advice

Gemma:

This new 6.5x income remortgage product is great for those who qualify, especially with like-for-like remortgages.

Consult an advisor to see if it applies to your circumstances.

⚠️ A mortgage is secured against your home or property and may be repossessed if you do not keep up with repayments.

Thank you for joining us! We’ll be back next week with another episode of Let’s Talk Money and Mortgages.