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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 18th March 2021*

How much mortgage can I borrow on my salary?

Lots of potential homeowners come to us for advice about how much house they can afford based on the salary they earn. Most mortgage lenders will consider lending 4 or 4.5 times a borrower’s income, so long as you meet their affordability criteria. In some cases, you could find lenders willing to go up to 5 times income.

In a few exceptional cases, you might be able to borrow as much as 6 or 7 times your income. Although to find lenders willing to lend at levels this high, it’s likely you will need help from a specialist mortgage broker.

According to the most recent Annual Survey of Hours and Earnings, the average annual salary in the UK is £28,677.

However, this amount is not representative of everyone and it’s important to know that even on a lower income, you may still be able to get a mortgage.

To help you understand how much you could potentially borrow depending on your earnings, we’ve created this handy guide which includes:

To find out how much you could get, make an enquiry. We’ll match you with an expert who can source the best mortgage loans for your circumstances via their whole-of-market access.

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How do lenders work out how much I can borrow based on my income?


Typically, lenders will determine how much you can borrow by multiplying your salary by four and a half or five times. So, for example, if you had an annual salary of £20,0000, you could be eligible for a mortgage of up to £100,000. On an interest rate of 3.92% over a 25-year term, your monthly mortgage payments could be £523. 

Mortgage lenders will then conduct an affordability test to make sure you have enough monthly earnings to meet other living expenses. 

There are however, lenders that may be willing to loan up to six times your annual salary, although this is usually in exceptional circumstances for borrowers with a good credit history and higher annual income.  

Many borrowers apply for a joint mortgage with another applicant, whether that be a partner, relative or friend, which means that more than one income can be taken into consideration when calculating affordability.

For example, if two people applied for a mortgage and they both earned £20,000 a year, the lender would calculate their overall annual salary as £40,000. If the lender agreed to loan the pair 5 x this amount, they could borrow £200,000.

How much can I borrow earning £12,000 a year?

A lot of people in lower salary brackets believe that they won’t be accepted for a low income mortgage, often because of misinformation or because they have been rejected by a lender in the past.

However, there are lenders that specialise in mortgages for borrowers on a lower wage.

Sometimes these mortgages can come with higher interest rates, so always speak to a mortgage broker before applying as they will have access to a range of lenders, some of which may be able to offer you a better, more affordable deal.

Take a look at the chart below to see how much you could borrow depending on your salary and potential income multiple.

As you can see, even a slightly higher salary can make a big difference:

Salary 4.5 Times Income 5 Times Income 6 Times Income
£12,000 £54,000 £60,000 £72,000
£13,000 £58,500 £65,000 £78,000
£14,000 £63,000 £70,000 £84,000
£15,000 £67,500 £75,000 £90,000
£16,000 £72,000 £80,000 £96,000
£17,000 £76,500 £85,000 £102,000
£18,000 £81,000 £90,000 £108,000
£19,000 £85,500 £95,000 £114,000

This chart is for comparative purposes only and we recommend that you contact your lender or broker for the most up-to-date information for your circumstances.

How much can I borrow on £20K-29K a year?

Salary 4.5x 5x 6x
£20,000 £90,000 £100,000 £120,000
£21,000 £94,500 £105,000/ £126,000
£22,000 £99,000 £110,000 £132,000
£23,000 £103,500 £115,000 £138,000
£24,000 £108,000 £120,000 £144,000
£24,000 £108,000 £120,000 £144,000
£25,000 £112,500 £125,000 £150,000
£26,000 £117,000 £130,000 £156,000
£27,000 £121,500 £135,000 £162,000
£28,000 £126,000 £140,000 £168,000
£29,000 £130,500 £145,000 £174,000

How much can I borrow on £30k-£34K a year?

Salary 4.5x 5x 6x
£30,000 £135,000 £150,000 £180,000
£31,000 £139,500 £155,000 £186,000
£32,000 £144,000 £160,000 £192,000
£33,000 £148,500 £165,000 £198,000
£34,000 £153,000 £170,000 £204,000

How much can I borrow if I earn £35K-39K?

Salary 4.5x 5x 6x
£35,000 £157,000 £175,000 £210,000
£36,000 £162,000 £180,000 £216,000
£37,000 £166,500 £185,000 £222,000
£38,000 £171,000 £190,000 £228,000
£39,000 £175,500 £195,000 £234,000

If I earn £40,000-£49,000 how much can I borrow?

If you want to buy a house with a £40,000 salary, and can meet lender’s affordability criteria, the following table will give you a guide as to how much you may be able to borrow on a mortgage. To find a mortgage to suit you, speak to one of the expert brokers we work with. 

Salary 4.5x 5x 6x
£40,000 £180,000 £200,000 £240,000
£41,000 £184,500 £205,000 £246,000
£42,000 £189,000 £210,000 £252,000
£43,000 £193,500 £215,000 £258,000
£44,000 £198,000 £220,000 £264,000
£45,000 £202,500 £225,000 £270,000
£46,000 £207,000 £230,000 £276,000
£47,000 £211,500 £235,000 £282,000
£48,000 £216,000 £240,000 £288,000
£49,000 £220,500 £245,000 £294,000

How much can I borrow on a £50K-£59k salary?

Salary 4.5x 5x 6x
£50,000 £225,000 £250,000 £300,000
£51,000 £229,500 £255,000 £306,000
£52,000 £234,000 £260,000 £312,000
£53,000 £238,500 £265,000 £318,000
£54,000 £243,000 £270,000 £324,000
£55,000 £247,000 £275,000 £330,000
£56,000 £252,000 £280,000 £336,000
£57,000 £256,500 £285,000 £342,000
£58,000 £261,000 £290,000 £348,000
£59,000 £265,500 £295,000 £354,000

How much can I borrow with a salary of £60,000-£65,000?

Salary 4.5x 5x 6x
£60,000 £270,000 £300,000 £360,000
£65,000 £292,500 £325,000 £390,000
£70,000 £315,000 £350,000 £420,000
£75,000 £337,500 £375,000 £450,000
£80,000 £360,000 £400,000 £480,000
£85,000 £382,500 £425,000 £510,000
£90,000 £405,000 £450,000 £540,000
£95,000 £427,500 £475,000 £570,000

What can I borrow on a salary of £70,000-£95,000?

Salary 4.5x 5x 6x
£70,000 £315,000 £350,000 £420,000
£75,000 £337,500 £375,000 £450,000
£80,000 £360,000 £400,000 £480,000
£85,000 £382,500 £425,000 £510,000
£90,000 £405,000 £450,000 £540,000
£95,000 £427,500 £475,000 £570,000

How much can I borrow on £100k-£200K income?

Salary 4.5x 5x 6x
£100,000 £450,000 £500,000 £600,000
£110,000 £495,000 £550,000 £660,000
£115,000 £517,500 £575,000 £690,000
£120,000 £540,000 £600,000 £720,000
£130,000 £585,000 £650,000 £780,000
£140,000 £630,000 £700,000 £840,000
£150,000 £675,000 £750,000 £900,000
£200,000 £900,000 £1,000,000 £1,200,000

These tables give you an at-a-glance guide to the amount you might be able to borrow on your salary.

If you earn £250,000 or more, the same multiples will apply so simply multiply your salary by 4, 4.5 or 6 to find out the kind of mortgage you may be able to borrow against your earnings.

Does bad credit affect how much I need to earn?

Bad credit can affect the number of lenders who are willing to lend to you and therefore the range of mortgages you have available to choose from. And while you could get your desired principal (initial size of your mortgage), you may have to pay a higher rate of interest, costing you more overall. 

The type of credit issues lenders are willing to accept will differ from lender to lender, so it’s important to remember that if one lender has rejected you, another may approve you. 

To improve your chances of getting a mortgage with bad credit, you can manage your debts, change any outdated or inaccurate factors on your credit reports, and save for a larger deposit. For more information on how to improve your credit score, read our guide

The amount you earn can affect a lender’s likelihood to accept you as an applicant and you may find that the more you earn, the more appealing the interest rates that are offered to you.

To get a better understanding of how your income can affect your choice of bad credit mortgage providers, talk to an advisor. They can answer any questions you may have, plus they can factor in your personal circumstances to find the best mortgage rates using their whole-of-market access. 

How much do I need to earn as an older borrower?

Some mortgage providers cap the maximum age a borrower can be at application or at the end of the mortgage term which can be frustrating if you are an older borrower.

The reason for this is lenders are concerned that you won’t be able to meet the mortgage repayments once you enter retirement.

However, there are lenders who will consider older borrowers, if they can prove that their income will be sufficient enough throughout the duration of the mortgage.

Mortgage providers may ask for proof of your income which could be from employment, savings, a pension or benefits.

To find out how much you will need to earn as an older borrower, speak to an expert.

The advisors we work with can talk you through the process and highlight which lenders may be willing to approve your mortgage depending on your income and other variables.

Alternatively, for more information on lending in later life, visit our section on here.

How much do I need to earn to get a Buy-to-let mortgage?

Some Buy to Let mortgage providers will require you to earn a minimum of £25,000 per year in order to apply for a Buy to Let mortgage. 

That being said, some lenders will also take the amount of potential rental income you’re likely to achieve into consideration.

As a general rule of thumb, most lenders will expect you to charge 25% –45% more than your mortgage repayment in rent as this provides sufficient income to pay your mortgage as well as any unexpected bills or repairs that may need doing.

Calculate how much you can borrow with your salary

To get a rough idea of how much you can borrow based on your salary, use our mortgage calculator below.

All you need to do is enter a few basic details to get a figure – try it now: 

Please select a valid form.

While our calculator is a great starting point, online calculators are unable to provide you with an accurate figure as they cannot take in the many variables that lenders use to calculate a deal.

For example, if you need a mortgage with bad credit, one online calculator might provide you with a quote for a lower loan which could leave you feeling as if you won’t have enough to purchase a property.

For a more accurate idea of how much you could borrow, make an enquiry. We’ll match you with one of the helpful mortgage brokers we work with who can review your circumstances and preferences, then find appropriate lenders using their whole-of-market access. All enquiries are free, and there are no marks made against your credit rating. 

Speak to an expert today

We understand that each situation is unique. If you would like a detailed insight into how much you could borrow on a mortgage from your household income, get in touch today.

Call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. It costs nothing to make an enquiry and there’s absolutely no obligation or marks on your credit rating.

Updated: 18th March 2021
OnlineMortgageAdvisor 2021 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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