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Mortgage - How Much Can I Borrow on my Salary?

Want to know how much you can borrow on your salary? Find out here.

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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: 3rd July 2019* | Published: 30th May 2019

How much mortgage can I borrow on my salary?

Lots of potential homeowners come to us for advice about how much mortgage they can borrow against their salary.

According to the most recent Annual Survey of Hours and Earnings, the average income 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, one of the expert advisors we work with, may still be able to get a mortgage.

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

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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 income 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.

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 income as £40,000. If the lender agreed to loan the pair 5 x this amount, they could borrow £200,000.

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

A lot of people in lower income brackets believe that they won’t be accepted for a 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 income.

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.

The chart below should give you an indication of how much you could borrow, depending on what multiples of income your lender is comfortable with.

Income 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 mortgage can I borrow on £20K-29K a year?

Income 4.5 Times Income 5 Times Income 6 Times Income
£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 mortgage can I borrow on £30k-£34K a year?

Income 4.5 Times Income 5 Times Income 6 Times Income
£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 mortgage can I borrow if I earn £35K-39K?

Income 4.5 Times Income 5 Times Income 6 Times Income
£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 mortgage can I borrow?

Income 4.5 Times Income 5 Times Income 6 Times Income
£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 mortgage can I borrow on a £50K-£59k salary?

Income 4.5 Times Income 5 Times Income 6 Times Income
£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 mortgage can I borrow with a salary of £60,000-£65,000?

Income 4.5 Times Income 5 Times Income 6 Times Income
£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 mortgage can I borrow on a salary of £70,000-£95,000?

Income 4.5 Times Income 5 Times Income 6 Times Income
£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 mortgage can I borrow on £100k-£200K income?

Income 4.5 Times Income 5 Times Income 6 Times Income
£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

Does bad credit affect how much I need to earn for a mortgage?

Bad credit can affect the amount of lenders who are willing to lend to you and therefore the range of mortgages you have available to choose from.

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.

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 lenders, talk to an advisor.

You can also see our bad credit mortgages section, which has useful advice as well as tips on how to improve your credit score.

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

Some lenders 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, once retired, you won’t be able to meet the mortgage repayments.

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.

Lenders 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 based 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 lenders 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 mortgage you can borrow with your salary

Many people feel unhappy with the quote they receive after using an online affordability mortgage calculator. This is often because the quote they receive is inaccurate.

An online tool lacks the ability to take all of your circumstances into consideration, whereas talking to a professional provides a clearer and more accurate reflection on how much you can borrow based on your salary.

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 buy a property.

However, a mortgage broker knows that some lenders will take the date of the bad credit into consideration as well as whether any debts you have are settled.

This can affect the amount you can borrow, so it’s worth talking to a broker who can take the time to look at your circumstances and find lenders who are more likely to accept you.

Speak to an income expert today

If you would like a detailed insight into how much you could borrow on a mortgage based on your household income, get in touch today.

Call Online Mortgage Advisor today on 0800 304 7880 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.  – We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 3rd July 2019
OnlineMortgageAdvisor 2019 ©

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 info 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.