Three-bedroomed, detached bungalow in Victoria Road, Preston. Offers over £265,000. Marketed by Dewhurst Homes.

Here are some of the houses you could buy in Lancashire - as mortgage lender says it will offer SEVEN times your salary

A mortgage lender has announced it will lend up to seven times a person's income.

Thursday, 30th December 2021, 12:30 pm
Updated Thursday, 30th December 2021, 1:38 pm

The deal, which is being offered by Habito is well above the traditional industry maximum of between four and five times a persons salary.

>>>Click here to learn about the true cost of renting in Lancashire.

According to plumpot.co.uk the average salary in Lancashire in 2021 was £32,300. This means Habito could lend up to £226,400 for a single income.

In a joint application only one person will be accepted for up to seven times salary, while the other will have their salary multiplied by five.

In Lancashire, that would mean Habito could lend up to £387,900 for a couple both earning the average income.

According to mortgage broker Trussle.com, the average deposit home buyers put down is 15 per cent of the home's value.

For a single person in Lancashire who took out the maximum loan and had a deposit of £40,000, they could look to buy a house worth £266,000.

For a couple with a deposit of £68,100, they could look to buy a house worth £456,000.

The deal

While Habito's deal could allow buyers to scale-up their buying ambitions, especially in a climate where prices have boomed in the past year, some have also warned that the deal could lead to people over-stretching themselves.

The deal is only available to people who take out one of the company’s “fixed-for-life” mortgages launched this year, which let borrowers lock their monthly repayments at the same level for up to 40 years. Interest rates on the mortgages start at 2.99 per cent.

To qualify to borrow seven times their income, applicants have to work in one of a number of professions, including firefighters, police officers, NHS clinicians, such as nurses and paramedics, as well as teachers in the public sector – and earn a minimum basic salary of £25,000 a year.

Higher-income earners on a minimum £75,000 basic salary are also eligible. Borrowers will need a deposit of at least 10 per cent.

Lancashire's average salaries

Burnley: £27.0k

Pendle £29.3k

Rossendale£30.3k

Chorley £30.7k

Blackpool £30.7k

South Ribble£31.0k

Wyre £31.6k

Blackburn with Darwen £31.7k

Preston £31.8k

Lancaster £32.1k

Hyndburn £33.0k

Fylde £37.5k

Ribble Valley £42.1k

The average UK salary for 2021 was £38.1k

Page 1 of 3