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£300,000 mortgages

Can you afford a £300k mortgage? Find out here

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By Pete Mugleston   Mortgage Advisor

Last updated: 8th February 2019 *

How much do I need to earn to get a mortgage of £300,000?

With average house prices in the UK around the £230,000 mark, and much higher in the south east, it’s not surprising that one of the most common questions we get asked is “How much can I borrow?”.

Most of the time borrowers will have a key figure in their head - whether that be because of they’ve spotted the property they want to buy or they just have an idea of the house prices in the area - and if a £300,000 mortgage is what you’ve set your sights on, this article is for you.

Our guide to £300,000 mortgages covers the following topics...

  • What deposit you need for a £300k mortgage
  • How much income is needed for a 300k mortgage.
  • Getting a £300,000 mortgage with credit issues
  • How much you need to earn for a 300k mortgage on a buy to let
  • Borrowing £300K in retirement
  • Borrowing £300k for a unique property
  • Speak to an expert in £300k mortgages

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What deposit do I need for a £300k mortgage?

One of the most important factors when determining how much you’re able to borrow is how much deposit you have. If you’re asking “how much do i need to earn to get a mortgage of £300, 000”, the first thing to consider is how much deposit you will need. The higher the deposit you have, the better your chances of getting a £300,000 mortgage and accessing the ‘cheapest’ or most competitive mortgage rates available on the market.

That being said, the number of higher loan to value (LTV) mortgages has increased considerably over the last few years with some lenders offering mortgages at 90% LTV and a small number willing go up to 95% (depending on risk assessments).

How much do i need to earn for a 300k mortgage?

Customers often ask us “what salary is needed for 300k mortgage?” and it’s one of the first things you should consider if you’re set on borrowing this amount.

The salary needed for a £300,000 mortgage will differ from lender to lender because what  will accept as declarable income differs. For example, there are some lenders who are happy to accept bonuses and projections (for self employed borrowers) while others will only take into account guaranteed income.

Typically, lenders will determine how much you can borrow by multiplying your income by three, four or five times (although some will multiply by six and, for second charge mortgages it’s not unheard of to get 10 times your income).

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. Remember, if you have a partner, your incomes can be combined.

Income 3 Times Income 4 Times Income 5 Times Income 6 Times Income
£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
£40,000 £120,000 £160,000 £200,000 £240,000
£45,000 £135,000 £180,000 £225,000 £270,000
£50,000 £150,000 £200,000 £250,000 £300,000
£55,000 £165,000 £220,000 £275,000 £330,000
£60,000 £180,000 £240,000 £300,000 £360,000

Alternatively, you can make an enquiry today and we’ll refer you to one of the experts for the right advice on how much you need to earn for a £300k mortgage.

Can I get a mortgage with credit issues?

The income needed for a £300k mortgage and the deposit you have are just a couple of the factors that will be taken into account when applying for a mortgage. You’re credit history will also be considered.

The type of credit issues lenders are willing to accept will differ from lender to lender.

For more information on this see our bad credit information section here, or make an enquiry and we’ll refer you to one of the experts who’ll be able to talk you through the mortgages available for borrowers with bad credit.

Can I get a mortgage on a unique property?

If you have the salary to afford a £300k mortgage you certainly stand a good chance of being accepted for a loan of this size, however, the type of property you’re looking for will also play a part in the lender’s decision.

Not every lender will accept properties that are deemed as non-standard - this includes unique properties (e.g. homes with non-standard construction elements, such as thatched roofs or timber frames) or those that are listed buildings. These properties are seen as higher risk because lenders fear they’ll be more difficult to sell.

That said there are lenders that are happy to consider a wide range of property types – For more information on this see our non-standard property section.

Or, to find out how we can help, get in touch today and we’ll refer you to one of the experts we work with who specialises in unique properties.

Can I get a mortgage into retirement?

Having the income for a £300k mortgage may not make any difference if your age falls outside of lenders’ criteria. Some lender have a cap on the maximum age a borrower can be at application or at the end of the mortgage term. The reason for this is lenders are concerned that, once retired, you won’t be able to meet the mortgage repayments.

However, in recent years, as the way in which we work and earn has changed, many lenders have scrapped their maximum age requirements and will grant a mortgage to any retired borrow who is eligible and capable of keeping up with the payments.

How much do i need to earn to get a mortgage of £300 000 on a buy to let?

Some buy to let mortgage lenders will expect you to earn a minimum of £25,000 per year in order to apply for a buy to let mortgage. However, when it comes to deciding on how much to lend you, most  will use the amount of rental income you’re likely to achieve as a guide. The majority of lenders will expect you to be able to charge 25% - 45% more than your mortgage repayment in rent.

Find out if you have the income needed for a £350,000 mortgage today

How much do you need to earn to get a £300k mortgage? If you still don’t know the answer to that question, get in touch and the expert brokers we work with will clear things up over the phone and introduce you to the right lender.

At OMA, we offer a 5-star service with access to expert brokers who are whole of market, already know the lenders most likely to lend to you and are accredited by us.

If you have questions and want to speak to an expert for the right advice, 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: 8th February 2019
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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 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.