Yearly income to afford a 600k house

How much do you need to earn to get a mortgage? Read on to find out the answer to the most popular question about mortgages

No impact on credit score

4.8 out of 5 stars across Trustpilot, Feefo and Google! Our customers love Online Mortgage Advisor

With the unpredictability of the mortgage market, we want you to have complete confidence in our service, and trust that you're getting the best available rate and the highest chance of mortgage approval.

If you're concerned or confused about what to do next, Get In Touch and we'll match you with a Specialist who'll give you the right advice for you and your circumstance.

Some of the most common queries across the mortgage industry focus on how much you need to earn to get a mortgage and how much you can afford to borrow with your own salary.

In this guide, we’ll look into why there is no straightforward answer to these questions, what you potentially need to be earning to borrow a range of different loans, and how a broker can help you secure the mortgage you need.

What are you looking for?

How much income do you need for a mortgage?

Whilst there are some lenders that may impose a minimum income requirement of around £20-£25k, this is certainly not the case for all.

It’s worth bearing in mind that some lenders are willing to consider alternative forms of income alongside your main salary, which has the potential to significantly increase the amount that you could borrow. For example, Income from investments and pensions, bonuses, commission and shift allowances, and even some forms of benefits could be used in some lenders’ calculations, so it’s important to seek guidance from a broker if you think this could apply to you.

How do lenders work out how much you can borrow?

Each lender has its own unique criteria and methods of assessing your affordability, but the vast majority can expect to borrow a maximum of 4.5 times their annual salary. This is because every lender in the industry is bound by regulations that only allow them to offer a higher multiple than 4.5 to 15% of applicants, per quarter.

To benefit from the 15% of mortgages that are calculated at 5 times, 5.5 times, and even in some cases, 6 times your income, you’ll usually need to fall into one of the following categories:

You have a deposit of 25% or above
You are a high-net-worth individual
Yu are in certain professions, such as a doctor or lawyer

Although the ‘mortgage income multiple’ metric is not relied upon as heavily as it once was, and most lenders now use a more holistic approach to assessing your income, it is still used for guidance by most lenders.

Of course, income is not the only factor considered by lenders, so even if you have a substantial salary for the size of loan needed, you’ll still need to meet the lender’s other criteria.

Did you know…You could access 30% more of the mortgage market with a broker on your side.

Speak to an expert mortgage broker

Maximise your chance of approval with a a dedicated specialist broker

Get Started Ask Us A Question

Ask Us A 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.

Mortgage affordability calculator

The table below shows how much you could borrow at a range of different incomes, and how the income multiple offered by the lender impacts the size of the loan.

Although it’s unlikely that someone earning £20,000 (as shown in the first row) would be able to achieve a mortgage at a multiple of 6 x their income, as you can see, the difference between 4 x (£80,000) and 6 x (£120,000) is substantial.

The only circumstances where lower earners may potentially be able to access higher income multiples are those in specific careers, such as police officers, as typically, lending in income multiples of 5 or over is reserved for those earning over £50k.

Example calculations

Income	4 x income	4.5 x income	5 x income	5.5 x income	6 x income
£20,000	£80,000	£90,000	£100,000	£110,000	£120,000
£30,000	£120,000	£135,000	£150,000	£165,000	£180,000
£40,000	£160,000	£180,000	£200,000	£220,000	£240,000
£50,000	£200,000	£225,000	£250,000	£275,000	£300,000
£60,000	£240,000	£270,000	£300,000	£330,000	£360,000
£70,000	£280,000	£315,000	£350,000	£385,000	£420,000
£80,000	£320,000	£360,000	£400,000	£440,000	£480,000
£90,000	£360,000	£405,000	£450,000	£495,000	£540,000
£100,000	£400,000	£450,000	£500,000	£550,000	£600,000

*The above table is for demonstrative purposes only and you should always consult your lender or broker for the most up-to-date information.*

It’s important to bear in mind that the income figure in the table refers to household income. Therefore, if you apply jointly with another applicant, both incomes will be combined, and it can make buying a suitable home much easier to achieve.

If you’d like to see how this could work out for you, based on your own annual household income, take a look at our mortgage affordability calculator here:

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.

Your Income

Input full salaries for all applicants

You could borrow up to

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

How a broker can help secure the mortgage you need

There are an absolute plethora of ways that a broker can help you to achieve the size of loan that you’re looking for, but it depends on your exact goals and circumstances. If your main goal is to borrow the largest loan possible for your income, they could:

Find lenders that will consider 100% of your additional sources of income
Find lenders with the most flexibility on term lengths, allowing you to extend the term
Find the lender with the best interest rates for your circumstances, minimising your monthly payments
Provide advice on improving your credit record, which can also help you access better interest rates
Help you to organise your finances to increase your expendable income, maximising the amount of income lenders are able to consider in their calculations
Recommend ways to increase your deposit, either through government schemes or by accepting a gifted deposit from someone
Suggest different ways to maximise your borrowing, such as through a joint application, or potentially with the help of others through the JBSP (Joint Borrower Sole Proprietor) mortgage or using a guarantor
Ensure that borrowers in trusted professions find the lenders that will offer professional mortgages at a higher level of borrowing and that high-net-worth individuals approach those lenders able to offer them 6 times their income, or more

The good news is, regardless of which of the above situations applies to you, we can pair you with a broker who specialises in that area. Get in touch today, to set up a chat with the broker that is best placed to help you.

We're so confident in our service, we

guarantee

it.

We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100*

What income is needed for a 120k mortgage?

If you’re aiming for a mortgage of £120,000, the chances are you’ll need to earn between £26,000-£30,000, assuming you’re offered an income multiple of 4-4.5 times your income.

It will be difficult to find a lender willing to go above 4.5 x salary at this level of income, but there are a few lenders offering 5 x salary with no minimum income requirement, depending on the size of deposit you have available.

160k mortgages

The below table shows how much you’re likely to need to earn if you’re looking to borrow £160,000. Don’t forget that the income needed can be spread across more than one applicant.

Target Mortgage Amount	4x Salary (Income needed)	4.5x Salary (Income needed)	5x Salary (Income needed)	5.5x Salary (Income needed)	6x Salary (Income needed)
£160,000	£40,000	£35,555	£32,000	£29,090	£26,667

400k mortgages

To get a mortgage of £400,000 the minimum you’ll need to be earning is between £88,000 and £100,000 at 4-4.5 times your income.

However, at this level of income, there will be more lenders available to you that are willing to offer 5, or even 5.5 times your household income, meaning that it may be possible to achieve this size of a loan with as little as £72,727, especially for those in secure professions.

If you’re looking to borrow a little more, the income needed for a £450k mortgage would typically be between £112,500-£100,000. It could be as low as £75,000 if you qualify with a lender offering an income multiple of 6 times annual salary.

Rated excellent by our customers

500k mortgages

If you’re looking to borrow £500,000 then you’ll need an income of £111,111 for a standard 4.5 x your income multiple mortgage. If you earn this amount individually, however, the likelihood is that you will qualify for a high-net-worth mortgage, as the earning threshold is typically £100,000.

600k mortgages

The below table demonstrates how much you would need to be earning, either individually, or jointly, in order to borrow a home loan of £600,0000.

Typically mortgage lenders will only consider the income of 2 applicants for a joint mortgage, but there are some willing to consider 3 or 4 applicants in certain circumstances, which could assist with borrowing at this level.

Target Mortgage Amount	4x Salary (Income needed)	4.5x Salary (Income needed)	5x Salary (Income needed)	5.5x Salary (Income needed)	6x Salary (Income needed)
£600,000	£150,000	£133,333	£120,000	£109,090	£100,000

800k mortgages

This table demonstrates the household income you would need in order to borrow £800,000. At this level of borrowing, you may find that fewer high street lenders are able to help you, as many cap their borrowing at £750,000.

There are plenty of specialist lenders who can lend at this level, however, so it’s highly recommended that you speak to a broker to access the lenders that can help you.

Target Mortgage Amount	4x Salary (Income needed)	4.5x Salary (Income needed)	5x Salary (Income needed)	5.5x Salary (Income needed)	6x Salary (Income needed)
£800,000	£200,000	£177,777	£160,000	£145,454	£133,333

Speak to an expert mortgage broker

Maximise your chance of approval with a a dedicated specialist broker

Get Started Ask Us A Question

Ask Us A 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.

£1 million mortgages

If you’re looking to borrow £1 million or more to purchase property, then this will be considered a large mortgage loan, and will typically only be offered by private banks and specialist lenders.

You will also likely need to be a high net worth individual, as even at 6 x your income, you’d need to be earning £166,666 to borrow this much. Assuming you went with a lender that only offered 4.5 x your income, however, you would need to be earning £222,222.

How the level of security you offer can impact your mortgage

The majority of lenders decide on the income multiples they are willing to offer, and the interest rates, based on the risk involved in lending to you. The more substantial security you’re able to provide, the less of a risk your borrowing becomes, and therefore the lender is more confident with their offer.

You can provide security in the following forms:

Deposit – A deposit is almost always needed, but the larger deposit you offer, the lower your LTV (Loan to Value). As some lenders have maximum LTV limits on their higher income multiple borrowing, offering a higher deposit could result in borrowing more in certain circumstances (albeit indirectly).
Typically those offering more than 20% deposit will be able to access the most attractive income multiples and interest rates.
It’s possible to get a mortgage with as little as 5% deposit, however, the interest rates will be higher and you’re unlikely to be able to access the same level of borrowing, regardless of your income.
Additional assets – if you already own other properties or similar assets of significant value, some lenders may be willing to consider this either in addition to your deposit or in lieu of one, depending on the value.
As these assets can be used as security on your loan, this lowers your risk profile from a lender’s perspective, and could potentially open up higher income multiple borrowing in some circumstances.

Get matched with the ideal broker for your income

No matter what your circumstances are, if you’re looking to make the most of your income in order to achieve the size of the loan you need to buy your dream home, our free broker matching service will pair you with an expert who has the exact experience necessary.

There’s no obligation whatsoever, and your initial consultation will always be free, so you have nothing to lose. Simply contact our team on 0808 189 2301 or make an enquiry, to find out how taking advice from the right broker can help you to achieve your home ownership goals.

Ask a quick question

We can help!
We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all values of Mortgages
Ask us a question and we'll get the best expert to help.

Article Revisions

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!

Continue Reading

*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.