How Much Income You Need to get a £250K Mortgage
If you’re wondering how much you need to earn to get a £250k mortgage, use our affordability calculator and read more about what determines borrowing sums.
Here we outline what income you might need, help you to make calculations and point you in the right direction. We’ll talk about what’s involved when it comes to acquiring a £250k mortgage and how a broker will make all the difference to securing borrowing at this amount.
To start off, enter your income into the calculator below to get an idea of whether you will qualify for a mortgage of this amount:
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.
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.
How much do you need to earn to get a £250k mortgage?
Based on the standard income multiples that most lenders use, the combined income of everyone who will be involved with the mortgage would need to be just over £55,000, at least. It’s difficult to give exact income amounts because there are a few different factors that affect your application and how much you’ll be able to borrow, namely:
- Your annual income
- The income multiple your lender offers
- Your outgoings
- Your general creditworthiness, as this will affect the number of lenders available to you
This is why getting a good mortgage broker on your side will make all the difference in how successful you’ll be in securing a £250k mortgage.
What income multiple will you be offered?
The majority of lenders review applications on a case-by-case basis and are most interested in assessing your affordability, based mainly on your income and outgoings. Some might lend you 4-4.5x times your salary, while others might go as high as 6x your income, which makes a huge difference in how much you are able to borrow.
Ultimately, how comfortably you can repay the loan is crucial and the less risky you appear to lenders, the higher your chances of securing the amount you need, as being more eligible means a wider range of lenders and mortgage deals to choose from.
Example calculations table
Here we look at salary versus income multiples, which are set by individual lenders, and determine how much you may be able to borrow according to your own circumstances.
|Income||3x income||4x income||5x income||6x income|
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How much will your repayments be?
There are a number of factors that will determine exactly how much those payments would be, of course, such as what interest rate you get, the term length and whether you get an interest-only or repayment mortgage. Enter ‘250000’ into our calculator below to get an idea of what your repayments could look like on a mortgage of this size.
Mortgage Repayment Calculator
Our mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest.
Total amount paid at end of term:
Get started with an expert broker to find out how much they could help you save on your mortgage repayments.
How working with a broker can maximise your borrowing
When it comes to knowing for certain whether you earn enough to get a £250k mortgage, the flexibility of lenders and the disparity between them can be confusing, but this ambiguity can also work in your favour. Working out how this lack of clarity can be beneficial to you, however, requires a professional pair of eyes.
When banks are adaptable, that means they’re more likely to view you on your unique circumstances, with more nuanced and holistic decisions made about your application. Without a good broker on your side with experience of the subtleties in the market though, it can be impossible to know who and where these amenable lenders and deals lie. It is also impossible to understand the vital actions you need to take that are required to get your application approved, and demonstrate your strengths and appeal as a customer.
For example, a highly trained broker, like the ones we work with, will be able to work around any variants within your finances that can boost your chances when approaching lenders, such as any supplemental income you may have. They will also know how to tackle issues such as bad credit, and have contacts with higher multiple income lenders should you need to stretch the confines of average borrowing limits to secure that £250k mortgage.
Other factors that may impact your eligibility for a £250k mortgage
The broker we match you with will help you to decipher any stumbling blocks that might need to be considered around your application. These are something your advisor will help you with, but you should still be aware of whether they may cause any impact down the line.
Loan-to-value (LTV): The lower this is, the more likely the banks will see you as a favourable mortgage candidate. While there are some lenders who will stretch beyond 90% LTV, most would prefer you to have at least 85%, with the remaining 15% being put down as deposit so you have equity in your home from the off.
Profession: Unconventional or unstable employment may affect your chances, however a broker will talk you through any hurdles around income types and mortgages you might face in this area, or any ways in which your job might boost your potential. Some professions, such as doctor or lawyer, are desirable to mortgage lenders and many offer higher income multiples to people in these lines of work.
Poor credit history: The same applies here. Your circumstances will be assessed on their own merit, but a broker will help you through any problems that might have been brought about by former credit issues. Visit our bad credit mortgage section for more information on this subject.
Age: This is another flexible field, however, some lenders will be more wary of older or retired applicants.
Buy-to-let: If you’re hoping to get a £250,000 mortgage for a buy-to-let property, the way things work will be different, not least the deposit you’ll need and affordability criteria. Find out more about this in our buy-to-let section.
Second homes or unique properties: The same applies to these kinds of mortgages. Read in more detail about getting a mortgage on a second home or what your prospects are for getting a mortgage on a non-standard property.
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Get matched to the right mortgage broker for a £250,000 mortgage
It’s crucial to the outcome of your mortgage application, and therefore the purchase of your home, to get the right expert on board from the very beginning of the process. Securing a loan as high as £250,000 can require many hoops to jump through and assessment criteria to qualify for.
The highly skilled and experienced brokers we work with will look in detail at your situation and provide honest, reliable advice and actions that will help you to feel supported and relaxed, while also doing the hard work to get the right outcome for you. They have access to corners of the market and lenders who might be the perfect fit for you, no matter how insurmountable the process may seem.
Contact us for a free, no-obligation initial consultation. Here we will listen to your situation and get to work matching you to the right expert. Call us on 0808 189 2301 or make an enquiry online today.
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