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Does salary affect mortgage rates?
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ftb_deena
Posts: 53 Forumite

Just wondering if your salary affects mortgage interest rates? Can't find information anywhere so I am guessing not?
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Comments
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Not really. That would impact affordability.
Loan to value is the main impactor on rate.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.3 -
Not directly. Bank's mortgage products offer the same rates irrespective of your salary.
However, your salary may have an indirect impact if you are looking at the upper reaches of how much you can borrow. For example if you earn 50,000 and are looking to borrow 250,000 that might mean that Halifax or NatWest may not work because they'll only lend you 200-220,000 but Nationwide or Accord will lend you 250,000. So even if Halifax had a lower rate, you wouldn't be able to use it.
In the same scenario if you earned 65,000 and wanted to borrow 250,000, you could use a wider range of banks and thus maybe get lower rates.1 -
Salary doesn't really influence loan rate directly. Salary influences the amount you can borrow through affordability. Assuming this is salary, and not income such as self employed.
Rates are more influenced by LTV (Loan to Value) amounts, and if it has a fixed rate element, the length of that.
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