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Mortgages at 7 times income

Can I get a mortgage at 7 times my salary? Get the right advice here.

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By Pete Mugleston   Mortgage Advisor

Last updated: 4th June 2019 *

We receive hundreds of enquiries from customers wanting to know how much they can borrow for a mortgage. Many people find it difficult to scrape together a big deposit, meaning they need to borrow a pretty sizeable amount in order to get onto the property ladder.

While 7x salary mortgages are not a standard product offered by UK lenders, don’t give up hope if you require a comparatively large home loan - there are other routes you may be able to go down.

Read on where we’ll be discussing what options are available, and the other factors lenders take into consideration when assessing your eligibility for a large mortgage. We’ll be covering:

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Can I get a mortgage based on 7 times my salary?

The highest salary multiple a UK mortgage provider will cap their lending it is usually x6 the customer’s annual income. But if you need to borrow more than that, there could be other options available, and this article will explore them.

What are the alternatives to getting a 7 time salary mortgage?

As established, the maximum any UK lender will offer you for a home loan is up to 6x your annual salary.

But what you may not realise is that there could be other sources of income available for you to put towards your deposit.

This means that you may only need to borrow a multiple of six or below (depending on what funds are available), once the additional capital has been factored in.

Secured loans

The most common way of funding if a 7x salary mortgage is required is to use a secured loan as collateral.

A “secured” loan, also known as a second charge, means that a lender will use something that you own as security in case you are unable to repay the loan. In most cases this will be your home, but it could be another high value asset such as a car.

With secured loans, many providers are willing to lend up to 10x your salary (some even more), and interest rates tend to be higher.

Bear in mind that for the buyer they pose a much higher risk, and you could have your home repossessed if you fail to keep up with the repayments.

Joint mortgages

Another consideration if you need to borrow a higher amount is to take out a mortgage with another person.

With joint mortgages, many providers allow you to borrow a multiple of the highest earner’s income, plus the income of the second applicant. As a single applicant on £35,000 a year, for example, a mortgage of £245,000 (7 x salary), would be unachievable alone.

However, if you were to apply with a partner who earns £32,000 a year, you’re a lot closer to achieving your goal. A lender may offer 5 x £35,000 (£175,000), plus the second income (£32,000), meaning you could potentially borrow up to £207,000.

Alternatively, lenders may offer a slightly lower multiple based on the combined total of both incomes. So, 4 x £35,000 + £32,000 = £268,000. Under these circumstances, the main applicant has essentially managed to secure a 7 x income mortgage.

Of course, these figures and income multiples are for demonstrative purposes only, and the rates you’re offered will be subject to further affordability assessments, as well as taking your individual situation into account.

Remortgaging

If you’re looking to buy a second home or invest in a buy to let and require a 7 x salary mortgage, remortgaging your home is a common way to raise extra capital to boost the amount of deposit you can put towards a second property.

There are a number of different factors that will impact how much you are able to borrow, including how much equity you own in your current home, plus the usual factors such as affordability, credit history, and other individual circumstances.

Equity release

In a similar vein, equity release in the form of a lifetime mortgage could be an option for older applicants looking to raise funds for a second home.

While age can count against you when it comes to getting a mortgage, if you’re over the age of 55 and own all, or most of, your own home, you may be eligible to release some of the equity to put towards a deposit for another property.

Equity release can be an expensive option, so it’s important to know the associated risks before you proceed. Visit our later life lending section to find out more, or make an enquiry and one of the equity release experts we work with will be in touch.

What other factors could hinder my chances of getting a large mortgage?

As ever, there are a number of different factors lenders will take into consideration when assessing how much they are willing to borrow. These include, but are not limited to:

Credit history

Bad credit issues are never a positive attribute when it comes to getting a mortgage, but it’s important to bear in mind that every mortgage provider works to different lending criteria.

While the severity of the issue will of course be a concern, the recency also tends to be a big defining factor. E.g. if you experienced an instance of adverse several years ago, some lenders may be more than willing to consider your application and offer you favourable rates if your record has been good since.

If the issue was more recent however, or you’re currently displaying signs of financial difficulty, you may be looked at less favourably by lenders, and therefore restricted to lower income multiple mortgages.

Buy to let properties

If you’re looking for a 7x salary mortgage to invest in a property to rent out, the situation is slightly different.

BTL mortgages are generally assessed based on the projected rental income rather than income (although some lenders do factor this in). They also typically require a lower loan to value (LTV) than a residential mortgage, usually a maximum of 85% LTV.
Make an enquiry to speak to a buy to let specialist for more information.

Why speak to an expert if you’re seeking a 7 times salary mortgage?

We’ve helped over 75,000 people find the right mortgage, even for buyers who have been declined a mortgage or have bad credit history.

In fact, our customers consistently rate us 5 stars on Feefo, mainly due to our high levels of service, but also because we offer offers a 5-star service with access to expert brokers who:

  • Are whole of market.
  • Can offer bespoke advice to customers buying in the UK and overseas.
  • Have a working relationship with all lenders, including high street banks and large loan specialists.
  • Know which lenders to approach for customers seeking large mortgage loans
  • Know what the best alternatives to x7 salary mortgages are
  • Are OMA Accredited advisors.
  • Have completed a 12 module LIBF accredited training course.

Talk to a large loan expert today

If you’re looking for a 7 times salary mortgage and want to discuss your options for funding the additional capital required, call Online Mortgage Advisor today on 0800 304 7880 or make an enquiry.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 4th June 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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Mortgage Affordability