The amazing offer by Habito has got people talking as it is well above the traditional industry maximum of between four and five times a persons salary.
According to plumpot.co.uk the average salary in Blackpool in 2021 was £30,700. This means Habito could lend up to £214,900 for a single income.
In Wyre the average is slightly higher at £31,600, which would help secure a Habito loan of £221,200 and in Fylde the £37,500 average would allow a loan of £262,500.
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
Blackpool £30.7k
Wyre £31.6k
Fylde £37.5k
Burnley: £27.0k
Pendle £29.3k
Rossendale£30.3k
Chorley £30.7k
South Ribble£31.0k
Blackburn with Darwen £31.7k
Preston £31.8k
Lancaster £32.1k
Hyndburn £33.0k
West Lancashire £34.0k
Ribble Valley £42.1k
The average UK salary for 2021 was £38.1k
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