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How Much You Need to Earn to get a £100,000 Mortgage?

Find out how much you need to earn for a £100,000 mortgage and how a specialist broker could secure the best rates

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: May 23, 2022

How Much Do You Need to Earn to Get a Mortgage of £100,000?

We receive lots of enquiries from customers asking us “How much do I need to earn to get a £100k mortgage?” Unfortunately, there’s no one set answer for this because, as ever, lenders look at many other factors surrounding your individual circumstances before deciding what salary you need to earn before you’ll be accepted for a £100k mortgage.

The good news is that the advisors we work with are experts in this area and can give you the right advice, even if you’ve been declined by a lender or have a bad credit history.

In this article will be able to give you a rough idea of how much lenders typically require you to earn as well as the other factors they’ll take into consideration.

Why is Income Important to Mortgage Providers?

Income is important because it helps lenders get an idea of whether you’ll be able to afford your £100k mortgage repayments. Your (and your partner’s, if a joint mortgage) income is considered vs your outgoings so as to assess your affordability.

Affordability is determined by calculating your debt-to-income ratio. Generally speaking, the lower your debt-to-income ratio is (the fewer outgoings you have versus how much you earn), the more favourably you will be looked out by lenders.

Depending on your circumstances (touched on later), some lenders are more generous than others. While many providers will only loan 3x to 4x your annual income, some will offer you up to 5x, and a minority up to 6x.

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How Much Do You Have to Earn to Get a Mortgage of £100,000?

So with this is mind, roughly how much salary is needed for a £100k mortgage? Say the lender you approach will loan a maximum of 4x your income, the very minimum you would have to earn would be £25,000 (remember that this can be based on your joint salary).

Take a look at our mortgage affordability calculator below to see how this may look for you and your own income:

calculator icon

Mortgage Affordability Calculator

Our affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest.

Input full salaries for all applicants
£

You could borrow up to 

Most lenders would consider letting you borrow

This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.

Some lenders would consider letting you borrow

This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.

A minority of lenders would consider letting you borrow

This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.

Get Started with an expert broker to find out exactly how much you could borrow.

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Example calculations

This chart provides a wider indication how much you could borrow depending on what multiples of income your lender caps at:

Income 3x Income 4x Income 5x Income 6x Income
£16,000 £48,000 £64,000 £80,000 £96,000
£17,000 £51,000 £68,000 £85,000 £102,000
£20,000 £60,000 £80,000 £100,000 £120,000
£25,000 £75,000 £100,000 £125,000 £150,000
£30,000 £90,000 £120,000 £150,000 £180,000
£35,000 £105,000 £140,000 £175,000 £210,000

What Other Factors Impact Your Eligibility of Getting a £100,000 Mortgage?

Job Status

Employment status can be a big factor that affects your eligibility to get a mortgage as certain types of role are deemed riskier than others.

For example, being self-employed can inhibit you being approved by some lenders, depending on how long you’ve been your own boss and whether you have the accounts to backup the figures you’ve provided.

Similiar to if you’re looking to get a mortgage as an agency worker, some lenders may want you to a track record of experience within your role and may want to know how long your current contract is for.

Other factors include length of time in your role, whether you have a permanent or you’re working a temporary contract, besides others.

Deposit

Generally, the bigger deposit you can get together the wider range of lenders you’ll have access to and the better rates you’ll be offered. Provided you pass the other lender checks, a handful of providers will offer you a mortgage with just 5% deposit, meaning a £5,000 deposit may be enough to afford a £100k mortgage. Some will consider you with a 10% or 15% deposit, and many are likely to accept if you have 20% – 25% as there is less risk association.

Adverse Credit Issues

All mortgage providers are less willing to loan to someone with bad credit history. Those that will may require a larger deposit, charge higher rates, cap the amount they will loan you, or require a larger deposit.

Some types as adverse are likely to impact your application than others due to the associated risk, but as discussed all lenders have different eligibility criteria.

If you’ve experienced any form of adverse and are concerned that it will negatively impact your chance of getting a mortgage of £100k, visit our section on how to get a mortgage with bad credit, or get in touch.

Age

Older people often find it harder to get a mortgage than younger borrowers as they are considered higher risk. Some providers cap the amount they are willing to loan, or impose an age limit on how old you are when the term beings and / or comes to an end. Equity release may be an option if you qualify.

If not, as a whole of market broker we are associated with a wide variety of lenders, many of which are willing to lend into retirement or who have no age restrictions. If this has been an issue in the past, contact us and we’ll put you in touch with a specialist.

Property Type

Different rules apply depending on property type, For example, if you’re borrowing for a buy to let (BTL), lenders will typically require a higher deposit and often base your affordability on your estimated income from renting.

If you want a mortgage for a second home, many providers will again want a far higher deposit (typically around 25% minimum). You may require even more if affordability checks suggests you will not be able to afford two mortgage, meaning income is even more critical.

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Why You Should Speak to an Expert Affordability Broker

We’ve helped over 120,000 people find the right mortgage, in fact our customers regularly rate us 5 stars on Feefo, mainly because of the level of service and by providing access to expert brokers who are:

  • Have access to the whole of market
  • Have an excellent working relationship with lenders.
  • OMA Accredited advisors
  • Have completed a 12 module LIBF accredited training course

Speak to a Mortgage Affordability Expert Today

If you like anything in this article or you’d like to know more, 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. We don’t charge a fee, and there’s no obligation or marks on your credit rating.

Ask a quick question

We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.

Ask us a question and we'll get the best expert to help.

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About the author

Pete, 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 found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with 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 OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the 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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