The Leeds highlights £165k mortgage borrowing potential for buyers earning £30k

Leeds Building Society is urging brokers to consider the mortgage options available to lower-paid first-time buyers, saying eligible applicants earning around £30,000 could potentially borrow up to £165,000.

The mutual has used Office for National Statistics earnings data to identify occupations where median pay meets or exceeds the £30,000 minimum income required for a single applicant to access its Income Plus mortgage range.

Those occupations include chefs, farm workers, bank clerks, tyre fitters, estate agents, undertakers, forklift truck drivers, postal workers, roofers and graphic designers.

Median salaries range from £30,010 for chefs and £30,101 for farm workers to £31,906 for roofers and £32,510 for graphic designers.

AFFORDABILITY OPTIONS

Leeds said the figures illustrate the potential for brokers to explore higher loan-to-income options for clients who might otherwise assume their earnings prevent them from buying a home.

Its Income Plus range offers higher income multiples to eligible borrowers, subject to the lender’s standard affordability checks. A single applicant needs a minimum income of £30,000 to qualify for the proposition.

Martese Carton, director of mortgage distribution at Leeds Building Society, said: “One of the biggest challenges facing brokers today is helping customers navigate affordability barriers in a market where house prices have grown significantly faster than wages in many parts of the country.

“We know some prospective buyers automatically assume homeownership is out of reach because of their income level, and equally some advisers may not realise the options available to those clients.

“Income Plus demonstrates that the door isn’t necessarily closed to borrowers earning around £30,000. For customers who can demonstrate affordability, there may be greater borrowing potential available than they expect.

“As a mutual, we’re committed to finding responsible ways to help more people into homeownership, and ensuring brokers understand the full range of solutions available is an important part of that.”