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Mortgages based on 5-6 times the borrower’s salary are not unheard of, but what are your options if you need to borrow 7 times income? Read on to find out…
Can you get a 7 times salary mortgage?
Yes. They are extremely rare in the UK market but there are options. A small minority of specialist mortgage providers can offer this salary multiple and there are also private lending options available for borrowers who qualify for high net worth exemption.
Specialist lenders
Specialist lender April Mortgages recently launched a range of products that allow applicants to borrow based on 7 times their income, but with a few caveats.
To qualify for this income multiple with April, you must meet the following requirements:
- Enter a 10 or 15-year fixed-rate mortgage agreement
- Have a loan-to-value ratio of no more than 85% (15% deposit required)
- Have an income of at least £50,000
- Apply through a mortgage broker
April Mortgages' 7 times salary mortgages are flexible agreements that come with no early repayment charges. As an intermediary who works with this lender, we can advise you about these products and help you apply for them.
High net worth mortgages
Besides niche providers like April Mortgages, the option to borrow based on 7 times annual income is usually only available to mortgage borrowers who have high net worth exemption. To qualify for this status, you will need to earn an annual income of at least £300,000 or hold assets worth £3 million or more.
If you meet this exclusive criteria, then the usual rules around mortgage lending will not apply and lenders can potentially offer you a bespoke deal. This means that they will be able to let you borrow based on higher income multiples, including 7 times salary.
If you are planning to use your high net worth status to negotiate a mortgage based on 7 times your income, you will need to apply through a specialist broker.
These mortgage deals are exclusively available through private lenders and the private arms of major banks, and they are only accessible via a broker with the right contacts.
Calculate how much you can borrow
You can use our calculator below to work out how much you can borrow based on 7 times your annual income, as well as other salary multiples for comparison purposes.
Now that you have run some calculations, you can arrange a free, no-obligation chat with a broker who specialises in 7 times salary mortgages below to find out what your options are.
Speak to a mortgage broker who specialises in 7 times salary lending
Eligibility criteria
To get a mortgage based on 7 times your salary, you will need to meet the following criteria:
- Income: You will need to be earning annual income of at least £50,000 or qualify for high net worth exemption.
- Fixed-rate period: April Mortgages will only stretch to 7 times income if you enter a 10 or 15-year fix with them. This requirement will not apply if you have high net worth exemption and are using a private lender.
- Broker involvement: You will need a mortgage broker on your side to access lenders who offer mortgages of up to 7 times salary.
- Other factors: Risk factors such as bad credit, being over 75 and buying a non-standard construction property can make it more difficult to qualify for a mortgage with a lender like April Mortgages, but they are unlikely to be an issue if you have high net worth exemption.
How to get a 7 times salary mortgage
As there are few options available among mainstream residential mortgage lenders, you will need to use a mortgage lender to access the specialist and private lenders who offer this income multiple.
You will need proof of income to evidence that you earn enough to qualify. Three months’ bank statements and wage slips should suffice, or documentation for your assets.
Your next step should be to find a broker who specialises in high net worth mortgages and higher income-multiple lending, and at Teito, we have advisors who are experts in this field. Get started here to arrange a fee, no-obligation chat with one of our brokers to find out what your options are.
Our specialist brokers can provide the following services:
- Access to private and specialist lenders who offer 7 times salary mortgages
- Provide bespoke advice for high net worth individuals
- Negotiate bespoke deals with private and specialist lenders
- Oversee the application process to save you time as well as money
What if you don’t qualify for high net worth exemption?
If you don’t meet the requirements for high net worth exemption, there are other ways to borrow the equivalent of 7 times your salary, including these potential options:
- Specialist lenders: There are a small minority of options available from specialist lenders, such as April Mortgages.
- Multi-person mortgages: For a joint mortgage, all of the applicants’ income is pooled before the lender applies an income multiple to the total amount. In some cases, it is possible to apply for a mortgage with up to three other people, all of whom may be able to declare income to stretch your affordability further.
- Supplemental income: It can be possible to borrow more than 5-6 times your salary by declaring supplemental income on top of your main wage. This includes things like benefits, investments, freelance work, bonuses and commission. Some lenders will cap the percentage that you can declare, while others will allow 100%.
- Secured loans: If you already own a property and wish to remortgage based on 7 times your salary, an alternative option could be a secured loan. These secondary debts can be secured against the equity in your property behind a primary mortgage, and it can be possible to borrow up to 10 times salary, with enough equity.
In summary, if you don’t qualify for high net worth exemption, there are other ways you can stretch your mortgage affordability. Speak to a broker to find out more about these options.
Example calculations
The table below shows example calculations showing how much you could potentially borrow on a mortgage based on 7 times your annual income.
|
Salary Amount |
Max Mortgage Based On x7 Income |
|
£300,000 |
£2,100,000 |
|
£325,000 |
£2,275,000 |
|
£350,000 |
£2,450,000 |
|
£375,000 |
£2,625,000 |
|
£400,000 |
£2,800,000 |
|
£425,000 |
£2,975,000 |
|
£450,000 |
£3,150,000 |
|
£475,000 |
£3,325,000 |
|
£500,000 |
£3,500,000 |
|
£525,000 |
£3,675,000 |
|
£550,000 |
£3,850,000 |
|
£575,000 |
£4,025,000 |
Why choose Teito for your mortgage needs?
Now that you have read up on 7 times salary mortgages and their criteria, your next step should be to speak to one of our specialist brokes. If you are a high net worth individual, they could secure you an exclusive deal, and can help you find an alternative if you aren’t.
Here are just some of the reasons people choose Teito for their mortgage needs:
- Our brokers specialise in high net worth mortgages
- They have deep working relationships with private & specialist lenders
- They can negotiate exclusive 7 times salary mortgage deals
- They can help you find an alternative to high net worth lending
Ready to take advantage of a free, no-obligation chat with a broker who specialises in 7 times salary mortgages? Get started here.
FAQs
At present, April Mortgages is one of the few lenders offering 7 times income mortgages, but will only do so through a mortgage broker, like us at Teito.
They are also provided by private mortgage lenders to high net worth individuals. There was previously one mortgage provider offering 7 times salary mortgages to non-high net worth borrowers, but they have since withdrawn this product from the market.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.