No, a mortgage is not always capped at 4.5 times salary. Many lenders use income multiples between four and 4.5 times income as a general guide. However, lending decisions are based on full affordability assessments rather than salary alone.
Lenders must follow regulatory guidance that limits the proportion of mortgages above 4.5 times income, but exceptions are available. Some borrowers, particularly those with higher incomes or certain professions, may access 5 to 5.5 times income products.
Monthly outgoings, credit history and stress testing against higher interest rates all affect borrowing potential. Income multiples are a starting point, not a guarantee.
Your home may be repossessed if you do not keep up repayments on your mortgage.