How Many Times Your Salary Can You Borrow For A Mortgage (2023)

FAQs

How Many Times Your Salary Can You Borrow For A Mortgage? ›

This would usually be based on 4-4.5 times your annual income, but some mortgage lenders stretch to 5 times salary, and some even higher than that.

No lenders advertise a 10x multiple. But, this could be possible if you have a high net worth and private lenders are willing to create a bespoke mortgage arrangement. You might also be able to borrow a large amount by using additional income, extra mortgage applicants, and supplementary assets.

Many lenders will only approve a maximum income multiple of five times income. Some will even limit this to a lesser level, while others will exceed the 5x income multiple. However, there are some possibilities where some potential borrowers may be able to qualify for a 7x wage mortgage.

Can you get a mortgage based on 4.5 times your salary? Yes, you can borrow up to 4.5 times your salary from a mortgage lender, as long as you match their criteria. Generally, borrowing 4 to 4.5 times your income is the standard multiple offered by most lenders.

Is a mortgage always based on 3 times your salary? No, not at all. Some will use 3 times a salary as a benchmarking tool, but others use different salary and income multiples. In fact, the majority will work off 4 or 4.5 times annual income while some will go as high as 5 times or even 6 times salary.

However, lenders will sometimes offer a mortgage that is 5 times your salary. So if you earn £40,000, you may be able to borrow up to £200,000. If applying for a joint mortgage with another person, you may be able to borrow 4-4.5 times your combined salaries.

Yes, it is absolutely possible to get a mortgage on £20k a year. Very few lenders have a minimum amount of income to qualify for a mortgage and will typically permit anywhere between 4 to 5 times your annual income.

Will I be able to get a mortgage five times my income? An income multiple of 5 is on the higher end of the scale and the majority of mortgage lenders offer lower multiples between 3-4.5. In contrast, there are a handful of lenders that may even extend to 6 or more - providing you meet their lending criteria.

You can borrow up to 7 times your salary through a high net worth mortgage if you have an annual net income of £300,000 or more or assets worth £3 million or more. High-net-worth mortgages are usually larger and more complex than standard home loans and suitable for high-value properties or investments.

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.

What mortgage can I get on 45k salary UK? ›

Which lenders offer these income multiples? Santander, Barclays, and Halifax all offer mortgages of up to 5.5 times your annual income in certain circumstances.

Most lenders will let you borrow between 4 and 5 times your annual salary, so based on these income multiples, for a £400k mortgage, you'll need to earn between £80,000 and £100,000.

Lenders typically calculate mortgage affordability using income multiples. Most lenders use an income multiple of 4.5x, which would require you to earn £55,000 for a £250k mortgage, but some use multiples of 3 or 4 times an annual salary and there are a limited few who will use multiples of 5x or 6x.

Professional Mortgage

Lenders are often willing to offer mortgages up to 6 times your salary for borrowers who work in a 'professional' career.

If you meet your chosen lender's criteria you should be able to successfully get a mortgage for 5.5x your annual salary, however, with lending criteria typically tighter for larger lending mortgages, be prepared to potentially need to meet very specific requirements.

How much can you borrow on your salary? Most mortgage lenders will consider lending 4 or 4.5 times a borrower's income, so long as you meet their affordability criteria. In some cases, you could find lenders willing to go up to 5 times income, or even 6 times income under the right circumstances.