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Getting a Mortgage Seven Times Your Salary?

MORTGAGES | 25.01.2022

In the last month a UK mortgage lender has established a deal that allows homebuyers to borrow up to seven times their income. These terms, seemingly very generous, will enable many to purchase property formerly out of their price range.  However, high interest rates along with the initial qualifying factors should be considered before starting the process.

Can You Get a Mortgage Seven Times Your Salary?

The industry maximum for borrowing is usually around four to five times your income, however one lender has now made it possible to obtain a mortgage seven times your salary.  This increase will allow for a significantly larger amount of borrowing for those who qualify. The lender in question has proposed this as a solution to the increase in house prices but not in wages, suggesting it will bridge the gap between the two. This will likely be most appropriate for those who are looking for lifetime properties and don’t intend to move from house to house. The increased borrowing power will allow people to access this kind of property-buying earlier in their lives. Most likely suiting those expecting pay rises over the course of their careers.  This offer has further benefits besides the increased borrowing power. The mortgage rates will be fixed forever, providing you with the long term security of knowing they will not be subject to increase. Along with this there are no early repayment charges or caps at the amount you can pay monthly- enabling you to pay your mortgage off early should you choose.  However despite these benefits, this type of deal may not be available to everyone.   

How to Qualify to Borrow Seven Times Your Income 

If you are looking to get a mortgage seven times your salary you must first meet the lender’s criteria. In order to qualify for this kind of borrowing power you must work in one of the following professional areas: 
  • Police force 
  • Fire service
  • Medicine
  • Veterinary
  • Dentistry
  • Accounting & Legal
  • The Education sector
  • Engineering, Architecture & Surveying
Along with working in one of these sectors you must also be earning above £25,000, and be able to put down a deposit of 10% for your chosen property.   If you are not working within one of these professions you must instead be earning £75,000 or above in order to qualify. This borrowing power therefore will likely not be available to everyone.   

Disadvantages of a Mortgage 7 Times Your Salary 

Should you be working in one of the aforementioned professions, and find yourself able to qualify for a mortgage seven times your salary it is important to note their main disadvantage.  Whilst the long-term fixed nature of this deal will provide you with security from rising interest rates, they are likely to be much higher in cost than they would be for a standard fixed rate mortgage and should be taken into account if you are considering this borrowing option.  If you are considering a mortgage seven times your salary and would like to discuss your options with one of our advisors, contact us here.   
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