Getting a mortgage 7 times your salary

Many lenders will only approve a maximum income multiple of five times income. Some will even limit this to a lesser level, while others will exceed the 5x income multiple. However, there are some possibilities where some potential borrowers may be able to qualify for a 7x wage mortgage.

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How to qualify for a 7x salary mortgage

As could be anticipated, this amount of borrowing will only be offered by a few lenders, and most of those that do offer it will be individually customised mortgages for customers with a high net worth. High-net-worth clients are often defined as having an annual income in excess of £300,000 and investments in excess of £3 million, but these values might vary from bank to bank.

Obviously, this amount of net worth will restrict the availability but, at the time of writing, there is one lender that would accept up to a 7x income mortgage without imposing such stringent requirements on the application. While there is still a minimum salary requirement of £25,000 for certain occupations and £75,000 for all others, this is far more practical for a larger audience. Other particular criterion items must be satisfied. These include the following:

• A minimum fixed rate for 10 years.
• Currently, a minimum 10% down payment or equity is expected.
• England and Wales first-time purchasers, house movers, and remortgage applicants are eligible.
• As previously said, there is just one lender that will give a 7x income mortgage at the time of writing; consequently, you should anticipate them to only lend at this level to borrowers with an adequate credit score.

How to obtain a larger UK mortgage

Even while the market is currently considering mortgages of up to 7x income, it is not always the case that you will have access to these lenders. Hence, how might you obtain a larger mortgage?

Some possibilities include the following:

Longer term fixed rates:

Certain lenders may raise the amount they are willing to offer if they are assured that your monthly payment will not increase for a minimum period of time.

A lender will see you as low-risk and ,therefore, less of a danger the lower your loan-to-value ratio is; this may enable you to have greater income multiples.

Additional income

You may receive money from a number of sources, and lenders may utilise this revenue in various ways. Lenders may utilise varying percentages of overtime pay, commissions, and bonuses as income when determining your creditworthiness. You may also get perks or maintenance, which lenders may or may not use to varying degrees. While this may not result in a greater income multiple, it might result in a lender providing a borrower with a larger amount of credit.

Joint borrower, sole proprietor mortgage (JBSP)

A JBSP mortgage is one in which another person is mentioned on the mortgage with you so that their income can also be considered for your loan amount, but they do not legally own the property.

Equity release mortgage

If you are over 55 years old, you may qualify for an equity release mortgage. The amount you can borrow is determined by the property’s valuation and your age at the time of the loan.

Government programmes

Some government programmes may allow you to borrow in excess of the typical income multiple. It may not necessarily imply that a lender will increase their maximum, but if you borrow from the government, you may be able to acquire a larger loan than you typically could.

Is a 10x income mortgage available?

At this moment, it is doubtful that you would qualify for a mortgage that exceeds 7x income. Therefore, a 10x salary mortgage or even an 8x salary mortgage from a lender will be out of reach for almost everyone. This will likely be a customised service that is exclusive to persons with a high net worth.

Due to the wide variety of lending restrictions imposed by mortgage lenders, if you desire to determine your mortgage capacity, we highly suggest you chat with one of our advisors, who will be familiar with who may be able to assist you, and how much they may be ready to offer.