How To Get A Mortgage 7 Times Your Salary
Speak to an Expert Advisor
or
Why Choose Us
What Our Clients Say About Us
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
30.06.2024
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
30.06.2024
Securing a mortgage can be a daunting process, especially if you’re aiming for a high multiple of your salary. The dream of owning a home often requires navigating through various financial requirements and lender criteria. This guide will walk you through the steps and considerations for obtaining a mortgage 7 times your salary, providing insights into eligibility, calculations, and potential downsides.
Who Can Secure a Mortgage Borrowing for 7 Times Income?
Not everyone will qualify for a mortgage 7 times their salary. Typically, this kind of high multiple mortgage is available to individuals in certain professions or financial situations. Here are some groups who might be eligible:
- High-income professionals: Doctors, lawyers, and other high-earning professionals often have access to special mortgage deals due to their stable and substantial incomes.
- Individuals with significant additional income: This includes those with substantial bonuses, commissions, or other variable income sources that significantly boost their total earnings.
- Strong credit profiles: Applicants with excellent credit scores and a solid financial history are more likely to be considered for high multiple mortgages.
- Low debt-to-income ratio: Lenders prefer borrowers who have minimal existing debt relative to their income, indicating a higher ability to manage additional mortgage payments.
Who Isn't Eligible for A Mortgage Based on 7x Salary?
While some individuals may qualify, others may find it challenging to secure such a high multiple mortgage. Here are some factors that could make it difficult:
- Low or unstable income: Those with lower or less stable incomes may struggle to meet the criteria for a 7x salary mortgage.
- High existing debt: If you already have significant debt obligations, lenders may be reluctant to offer a high multiple mortgage.
- Poor credit history: A poor credit score or history of missed payments can significantly impact your eligibility.
- Self-employment without sufficient proof of income: Self-employed individuals often need to provide more documentation to prove their income stability.
How Can You Obtain a Mortgage for 7x Your Salary?
If you believe you qualify, here are the steps to take to secure a mortgage 7 times your salary:
- Improve Your Credit Score: Ensure your credit score is as high as possible by paying off debts and keeping credit card balances low.
- Reduce Existing Debts: Lower your debt-to-income ratio by paying down existing loans and credit card balances.
- Provide Proof of Income: Gather documentation that proves your income, including payslips, tax returns, and any additional income sources.
- Save for a Larger Deposit: A larger deposit can make you a more attractive candidate to lenders.
- Consult a Mortgage Broker: A broker can help you find lenders who are willing to offer higher multiples based on your salary and financial situation.
- Consider Specialist Lenders: Some lenders specialise in high multiple mortgages and may have more flexible criteria.
Mortgage Calculations for 7 Times Salary
Understanding how lenders calculate mortgage eligibility is crucial. Here’s an example of how it might work:
- Annual Salary: £50,000
- Mortgage Multiple: 7 times
- Maximum Mortgage Amount: £50,000 x 7 = £350,000
Lenders will also consider other factors, such as existing debts, monthly outgoings, and overall financial stability when determining the exact amount they are willing to lend.
Mortgage Affordability Calculator
Use our Mortgage Affordability Calculator to determine how much you can borrow.
Mortgage Affordability Calculator
Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.
Are There Any Downsides of Mortgages for 7x Your Salary?
While a mortgage 7 times your salary can help you buy a more expensive home, it’s important to be aware of potential downsides:
- Higher monthly payments: Larger loans mean higher monthly repayments, which can strain your budget.
- Increased risk of default: If your financial situation changes, you may find it harder to keep up with payments, increasing the risk of default.
- Limited lender options: Not all lenders offer high multiple mortgages, which can limit your choices and potentially lead to higher interest rates.
- Economic changes: Interest rates can fluctuate, potentially increasing your mortgage payments over time.
How Much Can I Borrow?
The amount you can borrow depends on several factors beyond just your salary. Here’s how you can determine your borrowing limit:
- Use online calculators: Our online calculator estimates how much you can borrow based on your income.
- Consult with a mortgage broker: Broker like Ascot Mortgages can provide a more accurate assessment based on your specific financial situation.
- Consider other incomes: Include any additional income sources, such as bonuses, overtime, or rental income, in your calculations.
Repaying Mortgages Based on 7 Times Salary
Repaying a high multiple mortgage requires careful financial planning. Here are some tips to manage your repayments:
- Create a budget: Track your income and expenses to ensure you can meet your mortgage payments comfortably.
- Build an emergency fund: Save money to cover unexpected expenses or income changes.
- Consider overpayments: If possible, make overpayments to reduce the principal amount and interest over time.
- Regular reviews: Regularly review your mortgage terms and financial situation to ensure you are on track with your repayments.
How Can I Determine If I Am Eligible?
Determining eligibility for a mortgage 7 times your salary involves several steps:
- Check your credit score: Ensure it meets the lender’s requirements.
- Assess your debt-to-income ratio: Calculate your monthly debt payments relative to your income.
- Gather income documentation: Collect payslips, tax returns, and proof of any additional income.
- Consult a broker: A broker can provide a personalised assessment of your eligibility and recommend suitable lenders.
Apply for a Mortgage
Get things moving, apply for a remortgage.
Free unbiased mortgage advice is just a phone call away.
FAQ
01/ Can I get a buy-to-let mortgage based on 7 times my salary?
Buy-to-let mortgages typically have different criteria. Lenders usually consider the potential rental income of the property rather than just your personal income. However, having a strong income and credit profile can still be beneficial.
02/ Can I get a mortgage 10 times my salary?
Mortgages 10 times your salary are extremely rare and typically only available in exceptional circumstances. Most lenders consider such high multiples too risky. It’s best to consult with a mortgage broker to explore all available options and understand the feasibility based on your financial situation.
Meet Our Team
A simples guide to mortgages
Contact Us
Legal
Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £599 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £1299 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT
©2024 AscotMortgages.co.uk – All Rights Reserved
