How to get a bigger mortgage – up to 7x salary!
If you’re hoping to be a first time buyer or move home this year, you might find you can’t borrow as much as you need to get that dream home, even if you’re confident you could afford higher monthly payments.
If that sounds like you then hope may be on the horizon. There’s an emerging trend of some lenders offering extra-long fixed rates (10+ years) and because taking a long-term fixed rate means the lender doesn’t have to factor in potential interest rate rises in the future, you may be able to borrow more – up to 7x your salary!
Of course the most important consideration is to make sure you can afford the monthly payments, along with your household bills and other committed and regular expenditure – none of us want to be slaves to a mortgage and have nothing left over to enjoy!
At the moment, in order to borrow up to 7x salary you need tick a few boxes for the lender, such as:
- You must be employed (not self-employed)
- Have a salary of at least £75,000 in any job OR
- Be a ‘Professional’ earning at least £25,000 – acceptable professions include:
- Lawyer / Solicitor
As with any mortgage there’s a lot of regular boxes to tick such as having a deposit (at least 5% of the purchase price) and a good credit rating, but these are all things a good independent mortgage adviser will talk you through and help you understand.
If you’re looking to become a homeowner, move house or get a better deal on your existing mortgage we’d love to hear from you. Get in touch and we’ll be help you understand what’s possible, or sign up to our monthly newsletter, to keep your finger on the pulse.
Sam Murphy – 28th January 2022