How To Get A Mortgage 7 Times Your Salary
Interested to find out if you can use 7 times your salary for a mortgage? Here’s everything you need to know about borrowing 7x your income and how to make it happen.
If you’re interested to find out how much you can borrow on a mortgage, using income multiples is a great place to start. But, is it possible to get a mortgage that’s 7x your salary?
This guide covers everything you need to know about whether getting a mortgage worth 7 times your salary is realistic. You’ll also learn about how a lender will work out your affordability and where to find expert support.
Keep reading for all the details or click on a link below to jump straight to a specific section…
Can you get a mortgage based on 7 times your salary?
Generally, no. The vast majority of people in the UK will not qualify for a mortgage based on x7 their salary. When calculating how much you can borrow, the average income multiple used is 4-4.5x your salary. And, the maximum salary multiple is almost always 6x income.
As a mortgage worth 7x your income is higher than this, it’s only realistic in very niche situations. But, there can be alternative ways to increase your borrowing limit by leveraging other aspects of your application.
How is this possible?
The other main way to borrow 7 times your salary is if you qualify for a high-net-worth exemption. Some private lenders may be willing to offer a higher income multiple if you fall into this bracket. It would require access to assets worth at least £3 million, or an annual income of over £300,000.
What if you don’t have high net worth exemption?
Then there are still, admittedly very limited, ways to borrow based on seven times your salary. There are a small number of mortgage lenders who have no maximum multiple factor when assessing how much you can borrow.
Given that your options are so restricted here, your best bet is to speak to a mortgage broker who specialises in affordability. They will be able to advise you on whether this mortgage product is your best bet, and will make sure you’re fully up to speed on the possible alternatives.
Speak to a higher borrowing specialist
How to borrow based on this income multiple
There are only a limited number of lenders available who will even consider offering a mortgage based on a 7x income multiple, and these typically only work with high net worth individuals.
The best way to explore these options is through an expert broker. A skilled advisor will have existing relationships with lenders. And, using their industry knowledge will be a massive help. Even if a 7 times salary mortgage isn’t available, a resourceful broker will provide you additional paths to secure the mortgage you need.
To achieve this, your broker might introduce you to lenders who will accept additional forms of income. This could include your investments, bonuses, commissions, pension, overtime, or extra freelance work. They’ll also be able to look into ways to increase your deposit. Perhaps using other assets or property as security to find you the best deal.
If you’d like to discuss your plans, just make an enquiry. We’ll introduce you to a specialist broker who has plenty of experience securing mortgages based on high income multiples.
Mortgage calculations for 7 times salary
Here are some examples of the mortgage amounts you could borrow from lenders based on a 7 times salary income multiple:
|Gross Annual Salary||7X Salary (How Much You Can Borrow)|
Online mortgage calculations like these can only ever provide you with a rough guide on the amount you can potentially borrow. Once you’ve got your estimate, make an enquiry and we’ll set up a free, no-obligation chat with a broker who can calculate the exact mortgage amount you’d be eligible for, based on a bespoke assessment of your circumstances.
The exact criteria will depend on the lender you deal with, each having its own nuances. Whether you can qualify for a high-net-worth (HNW) exemption will also play a big role.
That being said, there are universal areas that will make an impact on your ability to secure a 7x salary mortgage:
If you have a high income, this could help you qualify for the HNW exemption. Although, if your income is above £300,000 you may not need such a high salary multiple to buy the home you want.
For a 7 times salary mortgage, you may also need to earn above a certain threshold. If you work in a particular profession, this can mean at least £25,000 to qualify.
Where your income comes from, and whether you’re self-employed, will also make a difference to the number of lenders willing to consider your application, which could, subsequently, have an indirect effect on the amount you’re looking to borrow and the interest rates you’re offered.
Some lenders don’t use income multiples and will have their own way of calculating how much you can borrow. This could work out to be 7 times your total salary if you can maximise other areas of your income and earnings.
How much you spend and your outgoing costs will play an important role. Even if you earn a large salary, how and where you spend your money can influence lenders. Excessive spending in the wrong areas can mean that a 7 times salary mortgage is taken off the table. Or, potentially an increase in the rates you’re offered.
So, it’s worth dealing with the lender who’ll take the fairest view of your circumstances. Speaking to a skilled advisor is a great way to make sure you present your finances in the most attractive way possible during your application.
The size of your deposit will impact your loan-to-value (LTV) ratio, and this can be a particularly important area for lenders. Using a larger deposit can reduce the perceived risk. This won’t directly affect how much you can borrow but it could mean you’re offered better terms and rates.
However, it is still possible to get market-beating rates no matter the level of your deposit. The best way to access the top deals based on your deposit size is by using an expert broker to find a suitable lender.
You may still be able to borrow a sum worth seven times your salary without even needing a high income multiple. This can be done by using any additional assets you own as extra security.
Or, if you have additional sources of income, some lenders will let you use this. By effectively increasing your income on paper, you can get a bigger mortgage on a smaller salary multiple.
Your credit rating gives lenders a useful snapshot into your overall finances. To get ahead of the curve, it’s worth downloading all your credit reports. This way you can work through them with your broker and correct any mistakes or make improvements.
Don’t worry if you have a bad rating, the brokers we work with have plenty of experience getting competitive mortgages for bad credit applicants. They can also help make sure there are no further unwanted marks on your credit file or unnecessary rejections.
Alternatives to consider
If you’re looking to maximise the total amount you can borrow for your mortgage, there are other options outside of getting a 7x salary multiple.
Here are some more strategies worth discussing with your broker:
- Joint mortgages: using multiple applicants can be an excellent way to boost your borrowing power without needing a high salary multiple. Having another name on the application means potentially lifting the total household income. So, you can reach your desired borrowing amount with a smaller income multiple. It’s even possible to have more than two applications on a mortgage application – some lenders allow up to four.
- Supplemental income: if your income is complex or comes from a few different sources, this can make a big difference. So, if part of your earnings is made up from bonuses, commissions, investments, overtime, or a pension – it’s worth dealing with a lender who can take all this into account. Potentially, it means you can borrow more.
- Secured loans: If you already own a property, a secured loan can be a useful way to get hold of more financing. Interest rates are higher, but it’s a realistic way to borrow 7-8 times your salary for a mortgage. Because this is classed as a second charge loan, you’d need to secure it against your home or another high-value asset.
- Equity release: if you’re over 55 and looking at mortgage options, equity release with a lifetime mortgage might be worth considering. If you want a 7x salary mortgage for a second home, using one of these methods can be an efficient way to access extra funds and make a larger borrowing limit more realistic.
- Remortgage: another way to increase your buying power for an additional property is by remortgaging an existing house you own. This can allow you to access extra capital to increase your deposit. Doing so may not lead to a multiple of 7 times your salary, but it can definitely give you access to a bigger mortgage if you speak to the right lenders.
Absolute Fab: I got a mortgage as an ex-bankrupt !!!
As an ex-bankrupt with a qualified Annulment I had to take several bridging loans to cover my debt. I found Online Mortgage Advisor who offered fantastic but specific insight to my issues. Within 6 weeks we exchanged contracts and I am now debt-free, and my house is safe.
They pulled out all the stops
Great staff and good communication. Helped us understand the process and gone over and above to help in a difficult situation. Other companies couldn't even be bothered but Thank you so much!
Anneke Woolley, 12 days ago
Our advisor was amazing from the start!
Aaron went above and beyond. He worked late and kept in contact with me and worked tirelessly to find me the best mortgage he could
James, 10 days ago
Rated 4.8 out of 5 stars across Trustpilot, Feefo and Google
Get matched with a specialist broker to maximise your salary
Borrowing a larger sum can be a great way to buy the house you truly want. Even if you can’t qualify for a mortgage based purely on 7x your salary, there are still plenty of ways to increase how much you can borrow.
We offer a free-broker matching service. This means we can quickly assess your circumstances, and then pair you up with a broker who can help you explore whether using 7 times your salary for a mortgage is possible.
Just call 0808 189 2301 or make an enquiry. We’ll set up a free, no obligation chat between you and an expert broker who’ll find you an ideal mortgage for your situation.
You can get a large buy-to-let (BTL) mortgage, but your personal income won’t be as much of a factor. The amount you can borrow for these investment mortgages is based more on projected rental income and financial forecasts that you present to lenders during the application process.
No lenders advertise a 10x multiple. But, this could be possible if you have a high net worth and private lenders are willing to create a bespoke mortgage arrangement. You might also be able to borrow a large amount by using additional income, extra mortgage applicants, and supplementary assets.
Ask A Question
We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.
Ask us a question and we'll get the best expert to help.
Get in touch today
Make an enquiry and we'll arrange for an experienced mortgage broker we work with to contact you straight away.