Can I get a 7 times income or salary mortgage in the UK?
It is not easy to obtain a mortgage that is based on more than six times your annual salary. However, it might possible with a mortgage broker who can introduce you to the right mortgage lender.
Is it possible to get a mortgage on 7 times your income?
Yes. However, it can be very difficult as only a small number of mortgage lenders offer mortgages based on seven times the borrower’s salary. The main exception to this is if you are classed as ‘high-net-worth’.
Some 7-times income mortgages are only available to borrowers who meet these criteria:
- You can work in a profession that is approved, such as the NHS, police, or teaching
- You earn at least £25,000 a year
- You have a minimum 10% deposit
If you earn more than £75,000 a year, you won’t be required to work in a particular profession. Joint mortgage applications will only be accepted if one borrower is eligible for the seven-times salary multiple. The income of the other will usually be multiplied five times.
Before trying to find a deal, get professional mortgage advice if you need to borrow more than 6x your annual income.
Exemption for high net worth mortgages
Another way to obtain a seven-times salary mortgage is to be high-net-worth. You must meet at minimum one of these requirements to be eligible for a high net worth mortgage exemption.
- Achieve an annual net income in excess of £300,000.
- Have assets worth more than £3 million
There are lenders that will offer you a customised deal if you meet the criteria for high net worth. This could include borrowing seven times your salary or an even higher income multiple.
High net worth borrowers with assets tied to their income can apply for an asset-backed mortgage. This allows you to protect the debt against a valuable asset such as a stock or shares portfolio.
Private mortgage lenders are often able to offer high-net-worth mortgages that you won’t find on a Google search. These lenders have mortgage brokers that specialise in arranging seven-times income mortgages. They can help you find the best deal.
Contact us today to find a mortgage deal from a provider with who you meet the lending criteria.
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Consider other options
You can borrow up to six times your annual salary through mortgages for high net worth individuals and the newly launched ‘fixed-for-life’ product.
These are some alternatives that you might consider.
Secured loans
If 7 times your salary mortgage is needed, a common method of financing is to use a secured lender as collateral.
A secured loan (also known as a second charge) is one where a lender will use your property as security if you cannot repay the monthly payments for the loan. This will most likely be your home. However, it may also be a high-value asset like a car.
Secured loans can be as high as 10x your annual salary, and some providers will lend even more. Interest rates are higher with secured loans.
Keep in mind that if you default on payments you may lose your home.
Joint mortgages
If you need to borrow more, another option is to get a mortgage jointly with someone else.
A joint mortgage allows providers to lend you a multiple of the highest-earning income plus the income of the second applicant.
Exactly how much you can borrow and the interest rate will be subject to an affordability assessment and your personal situation.
Remortgaging
If you already have a property, you may be able to remortgage it to raise cash to put down as a deposit if you want to buy another property.
There are many factors that can impact your ability to remortgage. These include how much equity you have in your home as well as affordability, your credit history, and your personal circumstances.
Equity release
If you’re over 55 and own a property with a decent amount of equity, equity release can be a good way to raise cash to buy another property or for any other reason.
However, you should be aware of the risks associated with equity release. It can be expensive, so you need to understand what you’re committing to before proceeding.
Contact us today to equity release.
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Other factors can affect your eligibility.
Whatever type of mortgage you apply for, the lender will look at the following factors:
- Your credit history
- How much deposit you have
- Your age
- Your income
- Your outgoings
Our complete guide to mortgage applications will provide more information about mortgage eligibility.
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Can I get a buy-to-let mortgage based on seven times my salary?
You might be able to get a buy-to-let mortgage at 7 times your income. This is because how much you can borrow as a buy-to-let mortgage is determined by how much rent you can achieve from a property, not your personal income.
You will also need to make sure the rent exceeds the mortgage payments by at least 125% – but some lenders may require a higher figure than this.
This topic is covered in detail in our guide to buy-to-let mortgages.
Find a mortgage broker
There are very few options to get a mortgage that is seven times your income.
However, we work with mortgage brokers who specialise in helping people to be able to borrow this amount.
A qualified mortgage advisor will have the experience, knowledge and contacts necessary to increase your chances of getting approved for a seven-times your income multiples mortgage. They can access all lenders that offer mortgages up to this amount and private mortgage providers who do not deal directly with the public.
We can be reached today, make an enquiry and set up a no-obligation meeting between you and a specialist in seven-times income mortgages.
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