Wondering “How much do I need to earn to get a mortgage?” You’re in the right place. In this guide, we will consider what you may need to be earning to qualify for a range of different mortgage sizes. We will also give you advice on ways to improve your mortgage chances but if you would like any more information after reading this guide, please contact our friendly team for support.
Most mortgage lenders allow borrowers to borrow a mortgage of 4.5 times their annual salary when borrowing for a home purchase or remortgage. To see how this could work out for your own household income and lifestyle, take a look at our Mortgage Affordability Calculator here:
Mortgage Affordability Calculator
Our mortgage affordability calculator can tell you how much you may be able to borrow from a lender. Simply enter your gross annual income into the box below and let the calculator do the math for you.
For a more detailed and personalised mortgage affordability, use our Mortgage Affordability Calculator here >
How much income do you need for a mortgage?
Generally speaking, mortgage lenders will require you to earn at least £20k but this isn’t the case for all.
Some lenders may require you to earn more while some will accept less.
Some lenders will accept alternative forms of income if you want to top up the salary you have earned in your current job. They will compare your declared income with the information on your most recent bank statements, payslips, and tax return (if you’re getting a mortgage as self-employed) to confirm your affordability for a mortgage.
Alternative income sources can include:
- Money earned from investments
- Pensions
- Government benefits
If the lender does accept additional forms of income, you stand a better chance of passing their affordability assessment* and you might even be offered a loan with lower interest rates.
* An affordability assessment is the process lenders use to make sure you can afford to pay for your mortgage and any increase in costs if interest rates rise. They will consider how much you can afford after taking your income and spending (including your usual housing costs) into account.
How do mortgage lenders work out how much you can borrow for a mortgage?
Lenders use income multiples when working out how much to lend customers wanting to borrow for a mortgage. Most lenders use an income multiple of 4,5 but higher income earners and those able to put down a larger deposit may be offered higher income multiples if they can afford to make each monthly payment on their loans.
This limitation is due to industry regulations, which restrict lenders to offering a higher income multiple than 4.5 to only 15% of their applicants each quarter.
While your income will be used to calculate how much you can borrow for a mortgage, there are other factors that lenders will take into account before agreeing to lend you money. These factors are based on their eligibility criteria which you will need to meet before you are granted loan approval.
To access the exclusive bracket of mortgages 5x income, 5.5, or even 6 times your income. These mortgage income multiples constitutes only 15% of all UK mortgage lenders offerings, to achieve this you typically need to meet specific criteria:
- Possessing a deposit that’s at least 25% of the property’s value. (75% Loan To Value Mortgages)
- Being a high-net-worth individual.
- Working in certain professions, like medicine or law. (Mortgages for Professionals)
While the ‘mortgage income multiple‘ is a traditional measure, its importance has diminished over time. Nowadays, lenders adopt a more comprehensive approach to assess your income, though the multiple still serves as a general guideline.
Remember, income isn’t the sole factor in securing a mortgage. Even with a significant salary, you must satisfy other lender criteria to qualify for the loan size you need.
Calculating Mortgage Affordability For Your Income
Mortgage affordability is a turn used by mortgage lenders when calculating how much you can borrow and afford. T find out how much you may be able to borrow from a lender based on your income, use the table below as a guide. If you are applying for a joint mortgage, remember to factor in the other person’s earnings when working out your income bracket. Alternatively, read our guide on joint income – how much can a couple borrow for a mortgage?
Example income multiples calculations
An individual earning £25,000 annually would likely find it challenging to qualify for a mortgage at six times their income, which would amount to £150,000; four times is more likely, which would amount to a mortgage of £100,000.
Mortgages that calculate at five times or more the annual income are usually only available to those whose annual earnings surpass £50,000; however, certain professions such as police officers may have access to mortgages with higher multiples even with smaller annual earnings.
| Income | 4 x Income | 4.5 x Income | 5 x Income | 5.5 x Income | 6 x Income |
|---|---|---|---|---|---|
| £20,000 | £80,000 | £90,000 | £100,000 | £110,000 | £120,000 |
| £30,000 | £120,000 | £135,000 | £150,000 | £165,000 | £180,000 |
| £40,000 | £160,000 | £180,000 | £200,000 | £220,000 | £240,000 |
| £50,000 | £200,000 | £225,000 | £250,000 | £275,000 | £300,000 |
| £60,000 | £240,000 | £270,000 | £300,000 | £330,000 | £360,000 |
| £70,000 | £280,000 | £315,000 | £350,000 | £385,000 | £420,000 |
| £80,000 | £320,000 | £360,000 | £400,000 | £440,000 | £480,000 |
| £90,000 | £360,000 | £405,000 | £450,000 | £495,000 | £540,000 |
| £100,000 | £400,000 | £450,000 | £500,000 | £550,000 | £600,000 |
Please keep in mind that the table provided here is intended solely as an example, and should not be considered definitive. For the latest and most accurate information it would be wiser to contact directly your lender or mortgage broker for guidance and consultation.
Note that the income values displayed in the table represent household total income; that means when two applicants submit joint applications their individual incomes will be combined into a single total for home purchasing purposes. Read our guide on Joint Mortgages to for more.
How a broker can help you get your mortgage approved
Mortgage approval isn’t always guaranteed, even if you are earning enough to be considered for a home loan. This is where the help of an experienced mortgage broker can be invaluable.
Should you choose to use our services, we will…
- Advise you on the steps you need to take to meet the eligibility criteria used by most lenders (eg. checking your credit report and improving your credit score)
- Find lenders who offer mortgages to people with your level of household income
- Find lenders who will consider additional income to increase the maximum amount you may be eligible to borrow
- Recommend ways of increasing your deposit to increase the amount you may be able to borrow (eg. gifted deposits, government schemes)
- Recommend ways to maximise your borrowing (eg. through a Joint Borrower Sole Proprietor mortgage or a guarantor)
- Find lenders who offer a higher level of borrowing if you qualify for a larger income multiple
- Search for loan deals with the best interest rates to reduce your monthly repayments
- Advise you on other ways to reduce your monthly repayments (eg. by extending your loan term)
- We will guide you on what is considered satisfactory proof of income for mortgage lenders
- Complete your mortgage application on your behalf.
We can do all this and more for you FOR FREE so get in touch with us for our expert mortgage advice if you’re currently thinking about applying for a mortgage.
Incomes needed vs mortgage amounts
As we have mentioned, the mortgage amounts you qualify for will depend on your total income.
We take a look at various mortgage amounts below and relate them to the income that is typically required for mortgages of these sizes.
What income is needed for a 120k mortgage?
For a loan of £120,000, your household income will need to be:
- £26,666 for an income multiple of 4.5 x your income
- £24,000 for an income multiple of 5 x your income
150k mortgages
To qualify for a £150,000 mortgage, your income will need to be:
- £33,333 for an income multiple of 4.5 x your income
- £30,000 for an income multiple of 5 x your income
170k mortgages
If you are looking to get a mortgage of £170,000, the income requirements are:
- £37,777 for an income multiple of 4.5 x your income
- £34,000 for an income multiple of 5 x your income
250k mortgages
How Much Do I Need to Earn to Get a Mortgage of £250,000 UK?
- £55,000 for an income multiple of 4.5 x your income
- £50,000 for an income multiple of 5 x your income
Can I get a mortgage for £250000? < Find out here
300k mortgages
For a mortgage of £300,000, your income should be:
- £66,670 for an income multiple of 4.5 x your income
- £60,000 for an income multiple of 5 x your income
400k mortgages
If you are able to afford mortgage payments on a £400,000 mortgage, you will need to be earning…
- £88,888 for an income multiple of 4.5 x your income
- £80,000 for an income multiple of 5 x your income
500k mortgages
If you earn enough to afford a mortgage worth £500,000, you will usually be eligible for higher income multiples. For example:
- £110,000 for an income multiple of 4.5 x your income
- £100,000 for an income multiple of 5 x your income
- £83,334 for an income multiple of 6 x your income
600k mortgages
If you’re able to afford a £600,000 mortgage as either a sole or joint applicant, your income should be:
- £133,333 for an income multiple of 4.5 x your income
- £120,000 for an income multiple of 5 x your income
- 100,000 for an income multiple of 6 x your income
800k mortgages
Should the home price of your dream property require a whopping £800,000 mortgage, you will need to be a very high earner! Unfortunately, very few lenders on the high street offer mortgages of this size – most cap their borrowing at £750,000 – but there are specialist lenders who will be prepared to give you an £800k mortgage. You can access these with the help of one of our mortgage brokers.
You will need to earn…
- £177,777 for an income multiple of 4.5 x your income.
- £160,000 for an income multiple of 5 x your income.
- £133,333 for an income multiple of 6 x your income.
£1 million mortgages
Only a few lenders offer loans of this size and they are usually private banks and specialist lenders.
If you are fortunate enough to have the income required to meet the monthly payment schedule on a £1 million mortgage we can put you in touch with the mortgage lender who will consider you for a loan.
You will need to be earning…
- £222,222 for an income multiple of 4.5 x your income
- £200,000 for an income multiple of 5 x your income
- £166,666 for an income multiple of 6 x your income
How Offering a Higher Level of Security Can Affect Your Mortgage Approval
The income multiple and mortgage interest rate you are offered will depend on your level of risk. The less risk you pose to the lender, the higher the income multiple and better the interest rates you are likely to receive. You will also benefit from lower monthly payments on your loan.
A lender might consider you a high risk if you have car loans and other debts and a low credit score on your credit report.
You can reduce your risk level by clearing your other debt and by improving your credit score after checking your credit reports.
By providing a high level of security, you can also reduce your risk. You can do this by:
Increasing your deposit amount
It’s possible to get a mortgage with a 5% deposit but if you’re able to put down a larger deposit of 20% or more, you may be able to benefit from a higher multiple, a lower interest rate, and a loan with a reduced monthly mortgage payment. With a higher deposit, you can also avoid paying private mortgage insurance.
Additional assets
If you own other properties or any other assets of significant value, you can use these as security on your mortgage debt if the lender thinks they are acceptable. As your risk profile will be lowered, you may then be eligible for a higher income multiple, reduced interest rates, and lower mortgage payments.
Assets can include:
- Art collections
- A luxury yacht
- A luxury sports car
- Gold
How Our Mortgage Broker Can Help: Our advisors understand income for mortgages
If you’re looking to get the best mortgage based on your income, contact our team today. Whether you’re a first-time buyer, home mover, or somebody looking to remortgage, we are here to help you find an affordable loan with the cheapest mortgage rates.
We will let you know how much you can borrow after looking at your income and will advise you on the steps you can take if you would like to borrow more. We will also give you advice on ways to get a mortgage with a lower interest rate to help you make savings during the mortgage term.
Get in touch if you would like more information and benefit from the mortgage support and advice that our experienced team can give to you.
FAQs
Can I get a mortgage on 20k a year UK?
Some lenders set a minimum cap of £30,000 but there are lenders who will give you a mortgage if you are earning £20,000 a year. You may be able to borrow £90,000 with a salary of this size.
What mortgage can I get with 30k salary?
Most mortgage providers will allow you to borrow up to 4.5 – 5 times your £30,000 salary so you may be able to get a mortgage worth up to £150,000.
Can I get a mortgage on 25k a year UK?
You may be able to borrow £112,5000 with a salary of this size provided you can find a suitable lender. We can help you so get in touch with our team.
Can I get a mortgage on 40k a year?
Yes! You can borrow £180,000 with a lender who offers 4.5 x your annual income and a maximum of £240,000 if you can find a mortgage lender willing to lend you 6 x your income for your dream home.
What is the minimum income to qualify for a mortgage UK?
Most lenders set a minimum cap of £30k but some lenders set no minimum cap at all.
You may be able to get a home loan on a low income (below £20,000) provided you have enough money from other sources to pay for your mortgage repayments. These sources will need to be evidenced on your bank statements and other required documents.
If your income is low, it might be wise to delay your application until your financial situation has improved. Although this is a difficult decision as interest rate rises while you delay may also make a mortgage even less affordable. Your lender will likely consider these costs before approving you for a mortgage when carrying out their income calculations but it’s still wise for you to do the maths too.
Of course, if you are applying for a joint mortgage with two incomes, you might still be able to afford a mortgage (as well as stamp duty property taxs etc. ) even if your income is low.
