Northern Rock, Co-operative Bank, Abbey National, Yorkshire building society, Bank of Ireland are among the growing number of banks who are now offering mortgages that are calculated at up to five times a customer’s income.

The banks are stretching their lending criteria on mortgages so borrowers could keep up with rising house prices.

The 5 time salary mortgages are aimed at people with stable jobs and incomes.

Until recently, banks offered mortgages at more traditional multiples of incomes, such as two and a half times a joint salary, or three or four times a single one.

Many lenders have looked at an applicant’s other debts, disposable income and payment record before coming to a decision. Not everyone who applies will get five times their salary. The bank will normally make the offer available to borrowers with a deposit of about 25% and an annual income of £60,000 or more.

A couple borrowing £250,000 would face repayments of about £1,400 a month - £17,000 a year.

The banks will scrutinise each applicant’s ability to repay the loan, and take into account future interest rate rises, before letting them borrow up to the new higher limits.

There are now 13 lenders who will lend at four and a half times a single income, or more.

House prices have nearly tripled in the past decade, far outstripping the rise in wages and salaries over the same period.

The Council of Mortgage Lenders show that first-time buyers currently make up 36% of all house buyers; a significantly smaller proportion than the 1990s when first time buyers made up 45% and 55% of the total market.

First-time buyers now rely heavily on their parents to give them substantial amounts of money as a deposit to finance their first time buyer mortgages house purchase.

With interest rates forecast to raise first time buyer are increasingly finding it harder to get on the housing ladder.