How Much Can You Borrow For a Mortgage?
It is possible to borrow up to seven times your income. Not everyone will qualify, but more than 30 lenders can still offer five to six times income in the right circumstances. You just need the right advisor to guide you. Over the last 10 years, we have helped hundreds of thousands of borrowers understand and maximise their borrowing power. Nearly all of our experts have extensive experience in allowing borrowers to get more without putting their affordability and costs under strain. We are confident we can get your mortgage approved and find you the best deal. If we cannot and another broker does, we will give you £100.*
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Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Reviewed by: Sheridan Repton
Bad Credit and BTL Specialist
Quick Summary
If you meet the tighter lending crtieria it is possible to borrow up to 7x income. Most lenders limit borrowing around 4 – 4.5x your annual income, with about 30 lenders offering between 5 and 6x, especially if you’re a professional or seen as a low-risk applicant.
That said, it’s not just about income multiples:
- Affordability checks now play a big role in how much you’re actually offered, factoring in any commitments and debts you might have.
- The type of income you have can differ, where some accept 100% of it others 80% or even 0% depending on what it is.
- Plus, choosing a longer-term fixed rate deal, like a five-year fix, can sometimes boost your affordability even further.
There are other ways to boost affordability too, and the best way to understand exactly where you stand is to chat with one of our experts who can run the numbers for you from lenders across the market, to establish your true borrowing potential.
In this article:
A mortgage income multiple is simply a multiple of your annual income, used by mortgage lenders to get an idea of the size of a home loan you might be able to afford.
For example, if you were earning £40,000 a year and a lender used a mortgage income multiple of 4, then they would take 4 x £40,000 – £160,000 – as the maximum they would be prepared to lend you.
Here are some of the key criteria lenders will look at when they assess your application:
- Income multiple (usually 4–4.5x, can be over 6x depending on your situation)
- Affordability vs total outgoings
- Some lenders might consider a longer-term fixed rate
- Some lenders might consider adding someone else to the mortgage too
- Lenders might consider your pension pot, if you have one (some lenders will include a percentage of this, even if it’s not being taken)
They will also consider the following questions:
- What is your gross annual income?
- Are you employed, self-employed, or a contractor?
- Do you have any existing financial commitments (loans, childcare, etc.)?
- Have you been pre-approved or assessed by a lender already?
- Is there anyone else who might go on the mortgage with you?
- Do you have a pension pot (some can consider to boost your multiple even if you’re young and not drawing from it)
Mortgage lenders typically use an income multiple when determining the borrowing capacity of an applicant. This is often 4 to 5 times the annual salary, but recent changes have prioritised affordability assessments. Debt-to-income ratio, employment stability, and your income source can impact the multiple available to you.
Enter your salary below (combined salaries for a joint application) to see how much you could potentially borrow.
Mortgage Affordability Calculator
Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.
Based on your total household income, you could borrow up to:
*
4.5x income
This is what most lenders would consider letting you borrow
5x income
Some lenders would consider letting you borrow this amount
6x income
Very few lenders would consider letting you borrow this amount
*To get exact numbers based on your specific income, outgoings, age and other info, you'll need to speak to one of our experts. Lending policies change regularly, so this is purely for illustrative purposes only, and is not tailored financial advice.
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Mortgage calculators can be useful to get a rough idea of your total borrowing, but keep in mind that they are unable to take into account your personal circumstances. Therefore, there may be additional factors that affect the actual amount you can borrow.
Some lenders also don’t rely on income multiples, and you will typically need to speak to a broker to access them.
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How lenders calculate affordability
Most lenders use a multiple of your income based on their affordability assessment to determine how much they will let you borrow. They will also factor in your outgoings and offset this against your earnings.
While the typical borrower can expect to be offered between 4 and 4.5 times their salary, it’s possible to find lenders willing to offer more.
In certain circumstances, you may be able to borrow 5 or even 6 times your income, which can drastically increase the size of your loan, as demonstrated in the table below.
| Net salary | 4x | 4.5x |
|---|---|---|
| £20,000 | £80,000 | £90,000 |
| £25,000 | £100,000 | £112,500 |
| £30,000 | £120,000 | £135,000 |
| £40,000 | £160,000 | £180,000 |
| £45,000 | £180,000 | £202,500 |
As you can see, even as little as 0.5 difference in the income multiple can make a staggering difference in the size of the loan you can borrow and, more importantly, the type of property you can afford.
How to borrow more
To access higher levels of borrowing, there are several steps you can take:
Speak to a specialist broker
As high street lenders tend to be more restrictive with their lending, it’s often specialist lenders that can offer more generous salary multiples. Using a broker provides you with the best opportunity to access those lenders.
Some specialist lenders are only available via an intermediary such as a broker, so if your main goal is to borrow more than your typical bank will offer, it’s highly recommended that you speak to a broker.
There are brokers at Online Mortgage Advisor who have specific expertise in maximising lending and can prevent you from missing out on a more suitable deal that you wouldn’t find online.
Some of the benefits (not limited to) of using a mortgage broker from Online Mortgage Advisor are as follows:
- Access to a wide range of lenders who offer 5 times salary and 6 times salary mortgages
- Able to borrow based on salary plus 100% of any supplemental income, such as benefits, pension income or freelance work
- Borrowing options are still available for high debt-to-income customers via lenders with a higher appetite for risk
- Access to the entire market, including mortgages based on higher income multiples and exclusive, broker-only deals for customers in certain professions
- Bespoke, impartial advice about rates and deals from across the entire market
Some considerations if you go directly to a bank:
- Risk of having borrowing capped at 4.5 times your annual salary
- Might be able to borrow based only on your main salary
- Risk being declined if your debt-to-income ratio is high
- Access to just one range of mortgage products
- Lender are likely to upsell their own products and services only
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Increase your deposit size
A larger deposit can persuade lenders that you’re a safe bet and subsequently give you a larger pool to choose from.
Offering more than the minimum amount necessary (5-10%) will encourage some lenders to lend to you at higher multiples of your income, as well as at more competitive interest rates.
Another point to note is that it will reduce the amount you need to borrow, therefore making it easier to pass the affordability assessment. For example, in the case of a £200,000 home:
- Provide a 5% deposit – (£10k) you’ll need to borrow £190,000
- Provide a 15% deposit – (£30k) you’ll need to borrow £160,000, which is easier to achieve
Include supplemental income
Bonuses, overtime, and commission can all count towards your affordability assessment. In each instance, evidence will need to be provided through payslips, often taken as an average over a period of months or years. How much of a bonus is accepted will usually depend on whether or not the bonus is guaranteed or discretionary.
The table below gives an overview of what to expect. As you can see, approaches vary significantly between lenders, so if any of these apply to you then talk to your broker so that they can prioritise your different income types and find the best lender.
| Income Types | % Considered | Notes |
|---|---|---|
| Basic Pay | 100% | Taken from payslips/contract |
| Regular Overtime | 50-100% | Usually average for the last 3 months |
| Irregular Overtime | 0-100% | Usually average of the last 3 months |
| Annual Bonus | 0-100% | Taken from payslips/P60 |
| Quarterly Bonus | 0-100% | From payslips (Usually avg. of last 12 months) |
| Monthly Bonus | 0-100% | From payslips (Usually avg. of last 3-12 months) |
| Commission | 0-100% | From payslips (Usually avg. of last 3-12 months) |
| London Weighting | 0-100% | From payslips |
| Car Allowance | 0-100% | From payslips |
| Shift Allowance | 0-100% | From payslips (Usually avg. of last 3 months) |
Use a guarantor
If you’ve already stretched your income as far as possible and are still unable to buy the home you want, a guarantor mortgage could be the answer. There are various options available, but the concept is that your borrowing, or an element of it, is secured by a guarantor, usually on their property, income, or savings.
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Joint mortgage borrowing
If you’re applying for a mortgage jointly with someone else, lenders will use your combined income to determine how much you can borrow, which usually works out to much more than either applicant could afford. Of course, this depends on both parties’ circumstances, and the addition of an applicant with very little or no income is unlikely to be very beneficial.
Some mortgage lenders will even consider the income of up to 4 applicants on one mortgage. However, this is fairly niche and is more likely to be available through specialist brokers.
| Salary A | Salary B | Total Joint Salaries | 4x Joint Salaries | 5x Joint Salaries | 6x Joint Salaries |
|---|---|---|---|---|---|
| £20,000 | £24,000 | £44,000 | £176,000 | £220,000 | £264,000 |
| £22,000 | £31,000 | £53,000 | £212,000 | £265,000 | £318,000 |
Which lenders offer higher income multiples?
In the right circumstances, a few high-street lenders will offer higher-salary multiple mortgages—usually between five and six times income—but much of the high-level borrowing on the market is provided by more specialist lenders.
- Barclays: Currently offers up to 5.5* times the income of applicants, so long as the LTV is 85% or less, and at least one applicant earns more than £75k, or joint applicants earn more than £100k between them. This is only available for capital repayment mortgages.
- Halifax: Currently offers up to 5 times the income of applicants who earn more than £75k on loans of up to £750,000 with an LTV of between 75-85%
- HSBC: Currently offers up to 4.49 times the income of applicants who earn at least £50,000 on loans with a maximum LTV of 80%
- Kensington: Can consider up to x6 salary mortgages but has been known to reserve this multiple for people in specific professions
* individual banks’ terms can change at any time at their discretion.
Aside from your income, some of the most common factors that can impact how much you can borrow can be found below, but it’s important to bear in mind that each lender may apply these criteria differently:
If you’re in a career that lenders consider to be low-risk, they will generally favour you. Often, you’re able to borrow higher multiples of your income from some lenders.
This includes those with a structured career path, such as police or similar key workers, or those who require a professional qualification, such as teachers, doctors, and solicitors.
Not all lenders have a minimum income requirement, but lenders typically have stricter criteria the more you borrow. For example, of those lenders with a minimum income requirement who offer loans of up to 5 times your income, the minimum salary is £40k-£50k, whereas, for more typical borrowing, £20-£25k is standard.
Lenders don’t list a minimum credit score requirement on their mortgage products; however, most will be looking for a strong overall credit profile. The higher the level of borrowing, the less likely a history of adverse credit will be acceptable.
This means most high street lenders will be unlikely to offer the maximum income multiple they have available if you have poor credit, even if your income is adequate.
In addition to your profession, how you’re employed can impact how much you can borrow. High street lenders tend to prefer you to be employed, as you’re considered lower risk. That said, if you’re self-employed, you can generally achieve the same level of borrowing as other applicants, with 4.5 being typical, so long as you can meet the lending criteria.
If you’re self-employed and looking to secure a loan based on higher income multiples, however, you’ll find that many lenders have specific requirements for the following…
- Sole traders: Most lenders will use an average of the last 2-3 years’ net profits as your income figure.
- Limited company directors: Most lenders use an average of your salary and dividends over the past 2-3 years as your income figure. However, some will look at retained profits for limited company director mortgages.
- Partners: If you own 25% or more of the limited liability partnership, your share of average net profits over the last 2-3 years will be considered income for mortgage purposes.
- Contractors: Lenders may use an annualised version of your day rate or an average of your net profits, depending on the type of contractor you are. Those working under umbrella companies will usually be treated as employees.
The good news is that there are lenders who specialise in self-employed lending, and they are much more likely to be able to accommodate higher lending limits if you’re self-employed.
Lenders will use only your expendable income in their affordability assessments, deducting all your existing outgoings from your annual income to find your debt-to-income ratio. Whatever’s left over is considered your actual ‘usable income’. If you have a high salary and high outgoings, it could impact how much you can borrow.
For example:
Earnings = £100k
Outgoings = £30k
Usable income = £70k (this will be the figure that’s multiplied to calculate your loan)
While lenders want to get a clear picture of your finances, they won’t be checking up on every penny you spend or questioning your weekly supermarket shop. They will be interested, though, in other borrowing commitments that could impact your ability to meet your mortgage repayments, such as credit card debt, personal loans, hire purchases, and other forms of debt.
Some common items that might show up on your credit file, such as mobile phone contracts, are often ignored for affordability calculations. If you have a debt that only has a few months left to run or is due to be cleared before you complete your house purchase, some lenders can ignore these, too.
Debt to Income Ratio Calculator
This calculator allows you to calculate your debt-to-income ratio and will indicate whether mortgage lenders will classify it as low, medium, or high risk.
Your Results:
Your Debt to Income Ratio is %
Good news! Most mortgage lenders will class your debt-to-income ratio as low. You’re unlikely to be declined for a mortgage based on your outgoings, but speaking to a mortgage broker before applying is still recommended as they can improve your chances of getting the best deal.
Most mortgage lenders will class your debt-to-income ratio as moderate, which means some of them might view your application with caution. Some lenders are much more strict than others when it comes to affordability and debt, so it’s important for you to find a lender who’s more lenient. You should speak to a mortgage broker before you apply to ensure you’re matched with a lender whose criteria you fit.
Most mortgage lenders will class your debt-to-income ratio as high. But that’s where we can help! With so much of your monthly income going towards debt repayments, you could struggle to get approved for a mortgage without the help of a mortgage broker. We can help you find a lender who’s more lenient on debt and affordability, and could still secure a mortgage approval.
Get matched with a broker experienced in higher-income multiple mortgages
Mortgage calculators can be helpful, but if your main goal is to stretch your borrowing to achieve the highest mortgage possible, it’s important to find a lender that is flexible enough to consider that based on your individual circumstances.
Our brokers have access to every lender, so they can provide a bespoke calculation based on your exact circumstances that consider every possibility. They also have strong working relationships with those lenders who are most likely to make the best use of your income.
So whether you’re self-employed, a professional, or are looking for a lender who will consider 100% of your supplemental income, they will know which lender will maximise your borrowing as far as possible.
Call us on 0330 818 7026 or make an enquiry to make use of our service, and we’ll put you in touch with an expert broker who is best able to help you achieve your home ownership goals.
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FAQs
In certain circumstances, it may be possible to borrow more than the maximum income limit of most lenders, which is typically 6 times your income. However, this level of borrowing is typically reserved for high-net-worth individuals. There are far fewer lenders equipped to deal with the often complex finances of high-net-worth individuals, but those that are tend to specialise in high net-worth mortgages exclusively.
This type of applicant may be able to borrow 7 times their salary, or potentially even more than that, depending on their circumstances. A specialist broker will generally be needed to access this niche area of lending.
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Pete Mugleston
CeMAP Mortgage Advisor, MD
Pete, a CeMAP-qualified mortgage advisor and an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete successfully went the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained and his love of helping people reach their goals led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!
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We had a very special need. 3 way mortgage with all 3 salaries counting towards the affordability. We contacted several mortgage advisors but OMA were the only ones who came through for us.
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Good speedy service got us 5.5 lender…
Good speedy service got us 5.5 times our income with a lender which is what we wanted, thanks Joanne!
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