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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: 23rd October 2020*

How Much Do I 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.

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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.

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).

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

Income3x Income4x Income5x Income6x Income

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.


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.


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.

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.

Updated: 23rd October 2020
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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.