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Abbey to offer 5x mortgage

02 November 2006
One of the UK's leading high street banks, Abbey, has announced a substantial increase in the standard lending amount it is prepared to offer home buyers.

In a response to the widely-publicised disproportionate rise in property prises when compared to average salaries, Abbey will now offer mortgage borrowers up to five times their annual earnings.

The move is being touted by analysts as a shrewd move to open the upper echelons of the property market to medium-earning individuals that have, until now, been restricted by the standard 3.5-times salary rule.

Abbey's new offering will be made to buyers who can afford a 25 per cent deposit and have a total annual income of £60,000 or more.

However, some observers believe that borrowing on this scale could leave mortgage-holders overly stretched and encourage those who would otherwise be better off renting looking to buy a house they cannot afford.

To read more about first-time buyer mortgages, click here.

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