At Oakstead Finance, we work with Barclays regularly and have a practical understanding of how the lender approaches applications. Barclays can consider up to six times income for qualifying repayment applications at no more than 85% loan to value, although its affordability assessment may produce a lower figure.
What Does the Barclays Remortgage Guide Cover?
For a homeowner moving an existing mortgage to Barclays, the main considerations are affordability, equity, income evidence, product costs and the reason for any additional borrowing.
- ✪ A standard remortgage replaces the mortgage held with the existing lender.
- ✪ Capital raising adds borrowing for an accepted purpose such as home improvements.
- ✪ Debt consolidation has separate limits and receives a fuller affordability assessment.
- ✪ Product fees and incentives must be compared with the headline rate.
How Much Can Be Borrowed on a Barclays Remortgage?
Barclays can apply a maximum six-times income multiple where the two highest-earning applicants have combined gross annual income of at least £75,000, the mortgage is fully repayment and the LTV does not exceed 85%.
This is a cap, not an automatic offer. Mortgage term, credit commitments, dependants, expenditure, credit profile and the selected product all influence the affordability result. Interest-only applications are subject to a lower maximum income multiple of five times income.
Oakstead’s guide to how lenders use income multiples explains why an apparently eligible case can still produce a lower borrowing figure.
How Does the Barclays Remortgage Guide Treat Variable Income?
Barclays can consider regular bonus, commission and overtime when the income has been received and sufficient evidence supports its continuation.
- ✪ Monthly bonus, overtime or commission generally requires the latest three payslips.
- ✪ Annual or quarterly bonuses require payslips showing the relevant payments.
- ✪ The latest P60 may be required where commission, monthly bonuses or overtime form part of income.
- ✪ Self-employed applicants normally provide two years of tax calculations and corresponding tax-year overviews.
Limited-company directors are normally assessed using salary and sustainable dividends drawn. Oakstead Finance explains how to obtain SA302s and tax-year overviews when these form part of the evidence.
Barclays at a Glance
| Criterion | Barclays position |
|---|---|
| Maximum repayment LTI | Up to 6.00x in qualifying cases |
| Six-times income threshold | £75,000 combined income |
| Maximum interest-only LTI | 5.00x |
| Capital-raising LTV | Normally up to 85% |
| Debt-consolidation LTV | Normally up to 80% |
| Average residential offer time | Eight days at time researched |
What Does a Barclays Remortgage Example Look Like?
Consider a hypothetical couple with basic salaries of £50,000 and £35,000. One applicant has also received commission of £12,000 over a sufficiently evidenced period, producing potential assessable income of £97,000 before Barclays completes its checks.
A £450,000 repayment remortgage against a property valued at £600,000 would represent 75% LTV and approximately 4.64 times that income. The request sits below the possible six-times cap, but childcare, loans, credit cards, remaining term and other expenditure could still reduce the amount available.
What Is the Barclays Remortgage Guide Underwriting Process?
Barclays reviews the application, income documents, credit profile and property information before issuing a mortgage offer.
- ✪ A decision in principle provides an initial assessment of borrowing and credit.
- ✪ The full application generates income and supporting-document requirements.
- ✪ A valuation confirms whether the property provides acceptable security.
- ✪ Legal work deals with redemption of the existing mortgage and registration of the new charge.
Barclays displayed an average one-day new-case review and eight-day residential offer time when researched. These are service indicators rather than completion promises. Oakstead’s guide to the factors affecting remortgage timescales covers the stages outside underwriting as well.
How Do Barclays Remortgage Rates and Costs Compare?
Barclays offers different fixed, tracker and offset remortgage products, with rates and fees varying by LTV and product structure.
The Great Escape remortgage package does not charge an application fee, valuation fee or standard legal fee, subject to its terms. Another product may carry a lower rate but include a product fee, so the overall cost during the initial period matters more than the rate in isolation.
Remaining with the existing lender through a product transfer may involve less legal work, while moving to Barclays may provide a different product or affordability result. Oakstead compares product transfers with new-lender remortgages in more detail.
Which Specialist Alternatives Could Be Considered?
Kensington and Precise Mortgages provide intermediary-led alternatives where the income structure or credit profile does not fit Barclays’ mainstream assessment.
- ✪ Kensington may assess qualifying high-earning company directors using salary plus their share of company net profit.
- ✪ Precise can consider applicants with one year’s accounts or certain recent credit issues, subject to product tier and assessment.
These differences can broaden the comparison, but specialist pricing and fees may exceed mainstream alternatives. No lender is preferable without assessing the complete case.
What You Need to Know
The Barclays remortgage guide shows strong potential income multiples for qualifying repayment cases, alongside clear evidence and affordability controls.
- ✪ Up to six times income may apply at no more than 85% LTV.
- ✪ Bonus, commission and self-employed income require supporting evidence.
- ✪ Rates, service levels and criteria can change and should be confirmed before submission.
Frequently Asked Questions
What is a Barclays remortgage?
A Barclays remortgage replaces a mortgage held with another lender with a new Barclays mortgage. Barclays reassesses income, expenditure, credit and the property.
How does the Barclays remortgage guide apply to affordability?
The Barclays remortgage guide explains that income multiples set an upper boundary rather than a guaranteed loan. Barclays still applies its complete affordability calculation.
Can Barclays lend six times income on a remortgage?
Barclays can apply up to six times income to qualifying repayment applications at no more than 85% LTV. The two highest-earning applicants must have combined gross annual income of at least £75,000.
What is Barclays’ interest-only income multiple?
The published maximum income multiple for an interest-only mortgage is five times income. The application must also meet repayment-plan and LTV requirements.
Does Barclays accept bonus and commission income?
Barclays can consider evidenced bonus and commission income. The documents required depend on how frequently the income is paid.
How does Barclays assess company-director income?
Barclays normally considers salary and sustainable dividends drawn for a limited-company director. Accounts and personal tax documents may be required to support the figures.
Does Barclays provide remortgage incentives?
The Great Escape package can include no application, valuation or standard legal fee, subject to its terms. Other Barclays products may use different fees or incentives.
How long does a Barclays remortgage take?
Barclays displayed an eight-day average residential offer time when researched, but this is not a completion guarantee. Valuation, documentation and conveyancing can extend the full process.
