<h2>How much do I need to earn to get a mortgage of £200,000?</h2> Many customers approach us to ask how much they need to earn to qualify for a particular size mortgage. For example, you might be wondering <i>“</i><i>How much income do i need for a £200k mortgage</i><i>?” </i> There is no “one size fits all” answer to this question, as every lender is different in their requirements and each will want to look into your particular circumstances before deciding on an acceptable salary for a £200,000 mortgage. In this article we will be able to provide you with a good idea as to what you need to be earning for a mortgage of this size, and what other individual circumstances lenders will consider when assessing an application for a £200k mortgage. We’ll be discussing: <ul> <li><a href="#earnings-for-200k">How much you have to earn to get a mortgage of £200k</a> <ul> <li> <a href="#income-impacts-application">How income impacts mortgage applications</a></li> </ul> </li> <li><a href="#deposit-needed-200k">How much deposit do I need to save for a £200K mortgage?</a></li> <li><a href="#other-factors-impact-eligibiltiy">What other factors impact eligibility for a £200k mortgage</a> <ul> <li><a href="#employment-status">Employment status</a></li> <li><a href="#credit-issues">Adverse credit issues</a></li> <li><a href="#age">Age</a></li> <li><a href="#non-standard-property">Unique property types</a></li> <li><a href="#btl-properties">Buy to let properties</a></li> <li><a href="#second-homes">Second homes</a></li> </ul> </li> <li><a href="#speak-to-expert">Speak to a mortgage affordability expert</a></li> </ul> [feefo-banner] <h2 id="earnings-for-200k">How much do I need to earn to get a £200k mortgage?</h2> So, roughly <a href="https://www.onlinemortgageadvisor.co.uk/mortgage-affordability/how-many-times-wage-borrow-mortgage/">how much income</a> is required to qualify for a £200k mortgage with a lender cap in place? Say your annual income is £35,000, you would need to find a lender that was willing to lend you <a href="https://www.onlinemortgageadvisor.co.uk/mortgage-affordability/6-times-income/">6x</a> your income - something only a few of them offer, and even then it will only be under the right circumstances. If on the other hand if you have £70,000 deposit saved, you’d open yourself up to a wider variety of lenders because this figure is just over <a href="https://www.onlinemortgageadvisor.co.uk/mortgage-affordability/3-times-income/">3x</a> your annual salary. This table helps explain this concept more clearly, and will give you an indication of how much you may be eligible to borrow depending on lender caps: <table> <thead> <tr> <td style="text-align: center;" width="205">Income</td> <td style="text-align: center;" width="205">3x Income</td> <td style="text-align: center;" width="205">4x Income</td> <td style="text-align: center;" width="205">5x Income</td> <td style="text-align: center;" width="205">6x Income</td> </tr> </thead> <tbody> <tr> <td style="text-align: center;" width="205">£35,000</td> <td style="text-align: center;" width="205">£105,000</td> <td style="text-align: center;" width="205">£140,000</td> <td style="text-align: center;" width="205">£175,000</td> <td style="text-align: center;" width="205">£210,000</td> </tr> <tr> <td style="text-align: center;" width="205">£40,000</td> <td style="text-align: center;" width="205">£120,000</td> <td style="text-align: center;" width="205">£160,000</td> <td style="text-align: center;" width="205">£200,000</td> <td style="text-align: center;" width="205">£240,000</td> </tr> <tr> <td style="text-align: center;" width="205">£45,000</td> <td style="text-align: center;" width="205">£135,000</td> <td style="text-align: center;" width="205">£180,000</td> <td style="text-align: center;" width="205">£225,000</td> <td style="text-align: center;" width="205">£270,000</td> </tr> <tr> <td style="text-align: center;" width="205">£50,000</td> <td style="text-align: center;" width="205">£150,000</td> <td style="text-align: center;" width="205">£200,000</td> <td style="text-align: center;" width="205">£250,000</td> <td style="text-align: center;" width="205">£300,000</td> </tr> <tr> <td style="text-align: center;" width="205">£55,000</td> <td style="text-align: center;" width="205">£165,000</td> <td style="text-align: center;" width="205">£220,000</td> <td style="text-align: center;" width="205">£275,000</td> <td style="text-align: center;" width="205">£330,000</td> </tr> <tr> <td style="text-align: center;" width="205">£60,000</td> <td style="text-align: center;" width="205">£180,000</td> <td style="text-align: center;" width="205">£240,000</td> <td style="text-align: center;" width="205">£300,000</td> <td style="text-align: center;" width="205">£360,000</td> </tr> <tr> <td style="text-align: center;" width="205">£65,000</td> <td style="text-align: center;" width="205">£195,000</td> <td style="text-align: center;" width="205">£260,000</td> <td style="text-align: center;" width="205">£325,000</td> <td style="text-align: center;" width="205">£390,000</td> </tr> <tr> <td style="text-align: center;" width="205">£70,000</td> <td style="text-align: center;" width="205">£210,000</td> <td style="text-align: center;" width="205">£280,000</td> <td style="text-align: center;" width="205">£350,000</td> <td style="text-align: center;" width="205">£420,000</td> </tr> </tbody> </table> <h2 id="income-impacts-application">How much does income impact mortgage applications?</h2> Income is important because it gives lenders an idea as to whether your earnings for a £200,000 mortgage will allow you to keep up with your repayments. <a href="https://www.onlinemortgageadvisor.co.uk/mortgage-affordability/" target="_blank" rel="noopener noreferrer">Affordability</a> is determined by calculating your debt-to-income ratio, which measures your income versus your outgoing. The lower your <a href="https://www.onlinemortgageadvisor.co.uk/mortgage-affordability/debt-to-income-ratio/" target="_blank" rel="noopener noreferrer">debt-to-income</a>, the more disposable income you have, meaning that lenders will look at you more favourably. However, some mortgage providers are more generous than others. The majority of lenders tend to <a href="https://www.onlinemortgageadvisor.co.uk/mortgage-affordability/how-many-times-wage-borrow-mortgage/" target="_blank" rel="noopener noreferrer">cap a mortgage loan at 4-4.5x</a> your annual income, but some will offer you up to <a href="https://www.onlinemortgageadvisor.co.uk/mortgage-affordability/5-times-salary-mortgages/">5x</a>, and a minority will lend up to <a href="https://www.onlinemortgageadvisor.co.uk/mortgage-affordability/6-times-income/">6x</a>. <h2 id="other-factors-impact-eligibiltiy">What other factors besides salary impact your ability to get a £200k mortgage?</h2> <h3 id="employment-status">Employment status</h3> What you do for a living can have a big impact on how risky you are perceived by lenders. They will take into consideration whether you are in full-time employment or <a href="https://www.onlinemortgageadvisor.co.uk/mortgage-affordability/self-employed-mortgages-how-much-can-you-borrow/" target="_blank" rel="noopener noreferrer">self-employed</a>, how long you’ve been in your current role, and what your contract type is - all of which carry varying degrees of risk. For example, someone <a href="https://www.onlinemortgageadvisor.co.uk/income-types/fixed-term-contracts/">looking for a mortgage while on a fixed-term contract</a> might find their options more limited than somebody in secure employment. <h3 id="deposit-needed-200k">How much deposit you have saved</h3> As the above table demonstrates, a larger deposit can be beneficial as it can open you up to a wider range of lenders and better rates. Most residential mortgage providers offer up to 85% loan to value (LTV), some are happy at 90%, and<a href="https://www.onlinemortgageadvisor.co.uk/deposits/low-deposit-mortgages/"> a handful will accept 95%</a>, depending on any other risks a borrower poses. Provided a lender is happy with the rest of your application, a handful of providers may be willing to offer you a £200k mortgage with as little as £10,000 <a href="https://www.onlinemortgageadvisor.co.uk/deposits/low-deposit-mortgages/#minimum-deposit" target="_blank" rel="noopener noreferrer">(5%) deposit saved</a>. For more information visit our dedicated <a href="https://www.onlinemortgageadvisor.co.uk/deposits/" target="_blank" rel="noopener noreferrer">mortgage deposits page</a>. <h3 id="credit-issues">Adverse credit issues</h3> As already established, every lender has different criteria as to what this will and won’t accept. When it comes to bad credit issues, some will not accept anyone who has experienced any form of adverse, some are happy to accept less severe instances, and a few will consider someone with recent and severe problems, depending on the circumstances. For more information, visit our dedicated page on <a href="https://www.onlinemortgageadvisor.co.uk/bad-credit-mortgages/how-to-get-a-mortgage-with-bad-credit/">bad credit mortgages</a>. Or, make an enquiry and we’ll refer you to one of the bad credit experts we work with. <h3 id="age">Age</h3> <a href="https://www.onlinemortgageadvisor.co.uk/mortgages-for-pensioners/" target="_blank" rel="noopener noreferrer">Older borrowers</a> can struggle to get a mortgage as many lenders perceive them as higher risk. As such, some will cap the <a href="https://www.onlinemortgageadvisor.co.uk/mortgages-for-pensioners/maximum-mortgage-age/" target="_blank" rel="noopener noreferrer">maximum age</a> allowed at the time of application, others may have a maximum term length (determined by age at the term end), and others will not lend into retirement. Some lenders won’t deal with anyone over 75, other stretch to 85 and a minority will lend to a retiree of any age, as long as they’ve proved that they will be able to keep up with the monthly repayments. This is why it’s important to get in touch with a whole of market broker. The ones we work with can connect you with a wider variety of lenders who are happy to lend into retirement or have no age restrictions. Click here for more information on <a href="https://www.onlinemortgageadvisor.co.uk/mortgages-for-pensioners/" target="_blank" rel="noopener noreferrer">lending in later life</a> or contact us today and we’ll put you in touch with a specialist. <h3 id="non-standard-property">Unique property types</h3> Some lenders are dubious about lending for properties that deviate from “standard” construction types. While every lender is different, many don’t accept properties that are “<a href="https://www.onlinemortgageadvisor.co.uk/property-types/non-standard-construction/" target="_blank" rel="noopener noreferrer">non-standard</a>” (e.g. those with a <a href="https://www.onlinemortgageadvisor.co.uk/property-types/thatched-properties/" target="_blank" rel="noopener noreferrer">thatched roof</a> or <a href="https://www.onlinemortgageadvisor.co.uk/property-types/timber-framed-property/" target="_blank" rel="noopener noreferrer">timber frames</a>), <a href="https://www.onlinemortgageadvisor.co.uk/property-types/mortgages-on-listed-buildings/" target="_blank" rel="noopener noreferrer">listed buildings</a> or unique in other ways, because of the higher risk they pose. That said, there are lenders out there who are happy to consider a wider range of property types. <h3 id="btl-properties">Buy to let properties</h3> If you’re looking to borrow for a <a href="https://www.onlinemortgageadvisor.co.uk/buy-to-let-mortgages/" target="_blank" rel="noopener noreferrer">buy to let</a> (BTL), different rules apply than with a standard residential mortgage. Typically a <a href="https://www.onlinemortgageadvisor.co.uk/deposits/buy-to-let-deposits/" target="_blank" rel="noopener noreferrer">higher deposit is required</a>, and affordability is calculated differently than with residential loans. <h3 id="second-homes">Second homes</h3> The same affordability rules if you want a <a href="https://www.onlinemortgageadvisor.co.uk/2nd-home-mortgages/" target="_blank" rel="noopener noreferrer">mortgage for a second home</a>, but lenders tend to perceive them as riskier because they want to be certain that you are able to keep up with repayments alongside your primary property. <h2>Why you should speak to an expert affordability broker</h2> Online Mortgage Advisor offers a 5-star service with access to expert brokers who: <ul> <li>Are whole of market</li> <li>Already know the lenders to go to as they successfully arrange these already.</li> <li>Are OMA Accredited advisors</li> <li>Have passed a LIBF Training course</li> </ul> <h2 id="speak-to-expert">Speak to a mortgage affordability expert today</h2> If you like anything in this article or you’d like to know more, call Online Mortgage Advisor today on 0808 189 2301 or <a href="https://enquiries.onlinemortgageadvisor.co.uk/match-me-with-a-specialist" target="_blank" rel="noopener noreferrer">make an enquiry</a>. Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee, and there’s no obligation or marks on your credit rating.