It’s not typically possible to get a mortgage based on 7 times your salary. In fact, the highest most lenders can consider lending is a mortgage 6 times your salary (or income)  – and this is only typically available to higher earners or those who meet certain criteria.

So what does this mean? Don’t worry, we’ll explain how it works in this guide – as well as who is eligible to borrow at a higher income multiple, what lenders consider and how to give yourself the best chance of securing a great mortgage deal.

Mortgages Based on 7 Times Your Salary

It’s not typically possible to get a mortgage at 7 times your salary (or income). As we said earlier, the highest most lenders can go is 6 times your salary (or income).

The only time in which someone may be able to borrow at up to what is technically 7 times their income is when they have numerous high value assets such as painting or properties that they can use as security – most likely with a private bank. This is because private banks don’t use income multiples as a primary factor.

For normal mortgages, lenders place a lot more importance on income multiples. Let us explain how these work.

Basically, when you apply for a mortgage, the lender works out your maximum borrowing using an income multiple, such as 4.5 (note: 4.5 is a commonly used income multiple by many lenders). They multiply the annual income of all applicants by this figure to calculate the maximum amount they will consider lending to you.

For example:

  • You earn £50,000 per year
  • The lender uses an income multiple of 4.5
  • The maximum the lender will consider lending to you is (4.5 x £50,000) = £225,000

Bear in mind that this is not the amount they’ll definitely lend to you (as this depends on other factors). It’s just the maximum amount they could potentially lend to you.

Now, although no mainstream lenders will lend a mortgage at 7 times your income on a normal mortgage, some lenders will consider lending at income multiples higher than 4.5, such as 6x your income.

For example:

  • You earn £75,000
  • The lender uses an income multiple of 6
  • The maximum the lender will consider lending to you is (6 x £75,000) = £450,000

We go into this in more detail in the next section.

Who Can Secure a Mortgage Borrowing for 7 Times Income?

You can’t typically borrow at 7x income or annual salary on a mortgage. Only extremely high net worth individuals with numerous high value assets are able to borrow at what would technically equal 7x their income (although income multiples aren’t how private banks would calculate what they could borrow; they would put more emphasis on the security provided).

For a normal mortgage that uses income multiples, the highest most lenders can consider lending at is 6x times your income. To be eligible you have to meet certain criteria, including one or more of the following:

  • You have a particularly high income or net worth – e.g. £75,000 - £100,000 per year
  • Your future income is likely to increase due to your profession – for a example, a lawyer or doctor
  • You have additional sources of income

In addition to you meeting the lender’s income and deposit requirements they will likely also expect an excellent credit history, low amount of debt, a suitable property as security and more.

Some professions that lenders view as having high earning potential, even if you’re only just starting out in this career and have a minimum income of £25,000, include:

  • Accountant
  • Architect
  • Barrister
  • Dentist
  • NHS doctor
  • Engineer
  • Firefighter
  • Lawyer
  • Nurse
  • Paramedic
  • Police officer
  • Surveyor
  • Teacher
  • Vet

Note that, if you’re purchasing with a partner with a partner, the lender may increase the total income threshold requirements.

Who Isn't Eligible for A Mortgage Based on 7x Salary?

At present, no one is technically eligible for a mortgage based on 7x salary as this isn’t a criteria typically used by lenders. The people that can borrow at up to what is technically 7 times their income would often borrow with private banks and have extremely high value assets such as paintings, properties, etc.

It’s unlikely you’ll be deemed eligible for a mortgage based on 6x salary unless you’re a higher earner with an income of £75,000 - £100,000 or have the potential to be high earner as you progress in your profession.

How Can You Obtain a Mortgage for 7x Your Salary?

Although it’s not typically possible to obtain a mortgage at 7 times salary, there are steps you can take to give yourself the best chance of borrowing more on a mortgage and securing a better deal.

  • Increase your income – of course, increasing your earnings is easier said than done. Nonetheless, it may be worth waiting to take out a mortgage once you’ve secured a raise or have settled into a higher paying role
  • Use a mortgage broker like John Charcol – we’re an independent mortgage broker with access to lenders across the market. We know their criteria and how they determine what to lend to you. This means that we can approach lenders such as private banks that can consider different income sources and/or use higher income multiples
  • Reduce your outgoings – after working out your maximum borrowing, the lender will consider your monthly outgoings in order to determine what you can afford in mortgage payments. Minimising your outgoings means more of your income can go towards mortgage payments, allowing you to borrow more
  • Improve your credit history – the better your credit history, the more reliable a borrower you appear to the lender, and the better the deal they’re able to offer you. Pay off debts, register on the electoral roll and continue to make payments on time to boost your credit score
  • Raise a larger deposit – a larger deposit means less risk for the lender, which can improve the terms they’ll offer you
  • Take out a mortgage with someone – having a joint borrower means there’s another income to consider, and a joint income can greatly increase the amount you’re able to borrow

Are There Any Downsides of Mortgages for 7x Your Salary?

Although there are many advantages, it's important to remember that a larger mortgage means considerably higher monthly payments and more interest charged overall.

Pushing your mortgage affordability to its maximum also means that if you have a change in circumstance, you’ll feel the consequence more severely.

Finally, a larger mortgage also requires you to save more for your deposit. You'll need to contribute at least 10% of the overall cost of the home you wish to buy.

How Much Can I Borrow?

While your annual income is the biggest factor in determining your maximum borrowing, the amount the lender will actually let you borrow and the deal they’ll offer will depend on various additional factors, such as your deposit, age, credit rating, monthly outgoings, the property you’re purchasing and more.

Our residential mortgage borrowing calculator has been designed to help you estimate how much you could borrow from a mortgage lender. Please be aware that this calculator uses the standard income multiple of 4.5 and therefore should only be used for guidance as your options will vary between lenders.

Repaying Mortgages Based On 7 Times Salary

Borrowing at a higher income multiple will likely result in larger monthly payments. This is important to bear in mind when considering what you want to borrow as it will greatly impact your monthly disposable income in the long term.

Of course, your mortgage adviser will work out what’s feasible for you, but it’s always a good idea to do some research yourself. You can work out your potential monthly mortgage and interest payments using our mortgage repayment calculator. All you need to know if how much you want to borrow and the kind of interest rate you’re looking at – try our moving home mortgage rates page for current deals.

How Can I Determine If I Am Eligible?

If you’re owning over £75,000 per year and/or are currently working in one of the professions noted above, have multiple sources of high earning income and/or have a particularly large deposit you may be eligible to borrow at up to 6x your income.

The simplest way to find out what deals are available to you is by calling John Charcol on 0330 433 2927. We’ll be able to review your situation and explain your options.

What’s more, even if you’re not eligible to borrow at a higher income multiple, we can still consider your situation and find you the best deal for your circumstances.