First-time homebuyers increasingly accept mortgages worth 4.5-plus times their income

Freedom of Information data from the Financial Conduct Authority reveal that first-time buyers are taking on considerably larger mortgage multiples, with loans at 4.5 times income rising from 27,500 in 2024 to 45,800 the following year, a 66 percent jump. Loans at 5.5 times income or higher surged tenfold, reaching 4,628. Several lenders have responded by offering higher-ratio products: Coventry Building Society now permits up to 6.5 times income, April Mortgages up to seven times, and others such as Tipton Building Society, Nationwide, NatWest and HSBC provide similar deals, usually with deposits of 5-25 percent and minimum income thresholds.

The Prudential Regulation Authority announced a review of loan-to-income restrictions in July 2025, and its ongoing assessment has already relaxed the rule that limited high-ratio mortgages to 15 percent of a lender’s book. While the expanded options enable more buyers to secure a home, personal-finance experts caution that higher borrowing could strain borrowers if earnings fall or interest rates rise.