How much can I borrow for a mortgage if I earn £75,000 or £100,000?
Page updated on 17/09/2024.
The biggest banks and building societies typically lend between four times single and joint salaries and up to 5.5 times single and joint incomes. In some circumstances, small or specialist lenders can allow you to borrow six times your salary including Nationwide.
If you are a single applicant with a clear credit history earning at least £75,000, borrowing up to £412,500 may be possible. If you have a partner going onto the mortgage and they earn £75,000, this could increase to £825,000.
With a £100,000 salary, a single applicant could borrow up to £550,000, and with a partner also earning £100,000 added to the application, the loan could rise to £1,100,000.
Aaron Strutt, product director at Trinity Financial, says: "The lenders use affordability calculators to determine how much you can borrow, and the maximum loan sizes can vary quite a lot. Some providers are much more generous if you do not have debts like credit cards or loans, while others look more favourably if you are consolidating debt.
"The strange thing about the mortgage market is how lenders calculate the amount they will lend using different figures. Some use the Office for National Statistics to generate national averages, while others use their figures. Some ignore pension contributions and living expenses, while others will not reduce the loan by such a large amount if you have children or kids in private school."
Smaller building societies offering higher income multiples for a mortgage
Some smaller building societies provide the most generous income multiples in the market, although they typically charge the highest rates.
Many work on a true affordability basis, provide interest-only options and increase the loan size for certain borrowers. A few lenders provide up to six times the income for higher earners.
Call Trinity Financial on 020 7016 0790 to secure a more generous mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change
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Trinity's brokers have access to a range of lenders offering £500,000+ mortgages. Each bank or building society uses different affordability calculations to determine the maximum loan.
Mortgage lenders use mortgage affordability calculators to work out how much they will lend and they typically provide five times single and joint salary mortgages.
For wealthier borrowers earning over £75,000, it is possible to secure 5.5 times income to borrowers with a limited amount of personal debt.
If you are planning to purchase a property you will need a deposit of at least five per cent. Ideally, you would have a 10% or 20% deposit.
The mortgage lenders' most competitively priced rates are available to borrowers with deposits between 35% and 40%, but their rates are often not much more expensive if you have a smaller deposit.
Nationwide still offers its Helping Hand product designed to help first-time buyers secure larger mortgage loans. The lender may allow eligible clients to borrow a higher loan amount when taking a 5- or 10-year fixed rate product. In fact, first-time buyers could borrow up to 20% more.
The availability of Helping Hand is subject to many factors, including, but not limited to, credit score, and how much debt the applicant has. All applicants must be first-time buyers and have a deposit of at least five per cent.
The minimum income is £30,000 for sole applicants, rising to £50,000 for joint applicants. All income sources except self-employed income, like bonuses and commissions, can be included.
Trinity Financial consistently arrange mortgages using this innovative acceptance criteria.
Nationwide for Intermediaries offers a two-year fix at 4.17% for larger mortgage loans between £300,000 and £5 million for borrowers purchasing a property. The overall cost for comparison is 7.1% APRC. The fixed rate is 0.04% more expensive for remortgages.
If you borrowed £1 million on the 4.17% two-year fix, the monthly interest-only cost would be £3,475 increasing to £4,872.68 on capital repayment over a 30-year term.
This mortgage is available on interest-only or capital repayment, and borrowers need a 40% deposit to access the rate. After two years, Nationwide's mortgage will revert to a standard variable rate of 7.49% unless you switch deals, and early repayment charges apply
Call Trinity Financial on 020 7016 0790 to determine how much your £1 million mortgage would cost.
- Lloyds Banking Group makes £2bn* lending available to first-time buyers borrowing between 4.5x salary and up to 5.5x salary
- New loan-to-income ratio designed to boost maximum mortgage loan sizes
- Up to 22% additional lending with First Time Buyer Boost scheme
• You contact one of our consultants by calling 020 7016 0790 or complete our basic enquiry form or mortgage questionnaire for a more detailed initial response.
• You tell us what you are looking for and we assess your mortgage and financial protection needs based on your monthly budget.
• We collect the information and documentation that the lenders and providers will need.
• Based on the information supplied, we provide you with illustrations for the most suitable products for your circumstances.
• We then submit the application on your behalf to secure a mortgage offer as quickly as possible. This is once you have confirmed you are happy to proceed.
• We manage the application through to completion and liaise between all involved parties such as valuers, estate agents and solicitors.
• Post-completion we are available for any questions. When you reach the end of your initial product, we are also able to discuss any further mortgage, will or financial protection product requirements.
As part of our ongoing service commitment - we will contact you at least three months before your fixed or tracker rate expires to ensure you avoid reverting to an expensive, standard variable rate.
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