What’s the Minimum Salary You Need to Get a Mortgage in the UK? | WIS Mortgages

How Much Do You Need to Earn to Qualify for a Mortgage in the UK?

Getting on the property ladder can seem challenging, particularly if you’re on a lower income or unsure how much you need to earn to qualify for a mortgage. While there is no formal minimum salary requirement in the UK mortgage market, lenders will want to ensure that you can afford the repayments both now and in the future. This guide outlines how lenders assess income, what factors influence borrowing potential, and what options may be available depending on your financial situation.

Risk Warning:Your home may be repossessed if you do not keep up repayments on your mortgage.

Why Lenders Look at Your Income

Mortgage providers are required to conduct affordability assessments to ensure you can maintain repayments. This involves reviewing your income to:

• Assess your ability to meet monthly repayments and terms
• Calculate how much they may be willing to lend
• Stress test your affordability if interest rates rise
• Evaluate your overall financial stability

Income forms the basis of your application, but lenders also consider factors such as credit history, existing debt obligations, and monthly outgoings.

Is There a Minimum Salary Requirement?

While there is no FCA-mandated minimum salary, most lenders apply internal affordability criteria. As a rough guide:

• Some lenders may consider applications from single applicants earning from £15,000 – £20,000 annually
• Lower incomes may be considered in joint applications or through specialist lenders
• The key is not the salary alone, but whether the applicant can demonstrate affordability based on their full financial profile

FCA guidance requires that firms ensure lending is responsible and not based on unrealistic affordability assumptions.

How Much Can You Borrow Based on Salary?

Lenders often use income multiples to estimate potential borrowing limits:

• Typically 4 to 4.5 times a single applicant’s gross annual income
• Some may go up to 5 or 5.5 times income for certain professions or low-risk borrowers
• Joint applicants are usually assessed on combined income

Example Borrowing Estimates (Subject to Affordability Checks)

These figures are illustrative and do not constitute a mortgage offer. Affordability and lending criteria vary between lenders.

Factors That Influence Borrowing

Lenders will take a holistic view of your financial situation, including:

Income Type

• Permanent employment is generally more favourably assessed than temporary or zero-hour contracts
• Self-employed income is usually averaged over the last 2-3 years
• Bonuses/overtime may be considered, but often only partially

Financial Commitments

• Personal loans, credit card debt, child maintenance or childcare costs can all affect borrowing power

Credit Profile

• Missed payments, defaults, or County Court Judgments (CCJs) may reduce your eligibility
• A strong credit record may improve your terms or access to higher borrowing multiples

Deposit Size

• A larger deposit reduces the lender’s risk and may secure better rates
• Some government schemes enable purchases with as little as a 5% deposit

Tips to Improve Mortgage Eligibility

If your income is lower or you are concerned about qualifying, consider the following:

• Increase your deposit: Save more or consider gifts from family (subject to lender rules)
• Improve your credit score: Check credit reports for accuracy and reduce outstanding debts
• Consider a longer mortgage term: This may lower monthly repayments but increases interest over time
• Look at shared ownership: Allows you to purchase part of a property and pay rent on the remainder
• Explore government schemes: Such as Help to Buy, First Homes, or Right to Buy (eligibility criteria apply)
• Seek specialist advice: Mortgage brokers can help identify lenders who may accept non-standard incomes

Mortgages and State Benefits

Some lenders may consider certain types of benefit income when assessing affordability, including:

• Disability Living Allowance (DLA)
• Personal Independence Payment (PIP)
• Carer’s Allowance
• Some tax credits or child benefit

However, many lenders exclude means-tested benefits such as:

• Universal Credit (though some may accept the housing element)
• Jobseeker’s Allowance (JSA)
• Income-based Employment and Support Allowance (ESA)

Always check with the lender or a regulated mortgage adviser to clarify what income sources are accepted.

Risk Warning:Your home may be repossessed if you do not keep up repayments on your mortgage.

Single Person Mortgages

Applying as a sole applicant can present specific affordability challenges:

• Income is assessed individually, not jointly
• Lenders may apply more conservative affordability calculations
• You may need to compromise on property type or location

Helpful Options:

• Joint borrower, sole proprietor mortgages (e.g. with a parent)
• Shared ownership or shared equity schemes
• Consider relocating to more affordable areas
• Explore increasing income via training, side work, or promotions

Income-Based Mortgage Scenarios (Illustrative Only)

Example based on 30-year term at 2.5% interest. Rates vary. This is not financial advice or a mortgage offer.

Frequently Asked Questions

Q. What’s the minimum mortgage amount available?

A. Most lenders have minimum thresholds ranging from £25,000 to £50,000.

Q. Can I get a mortgage earning £15,000?

A. Possibly, through specialist lenders. A larger deposit and good credit history would strengthen your application.

Q. Do lenders look at gross or net salary?

A. Primarily gross (pre-tax) income is used in affordability assessments.

Q.Is pension income acceptable?

A. Yes, most lenders consider retirement or private pension income, subject to verification.

Q.What deposit do I need?

A. minimum of 5% may be acceptable under some schemes. However, a 10% or larger deposit often results in more favourable mortgage rates.

Final Thoughts

There is no official minimum salary to get a mortgage in the UK. However, you’ll typically need to earn at least £15,000 to £20,000 per year to meet most lenders’ affordability thresholds. More importantly, lenders want to see evidence of consistent income, manageable outgoings, and a reliable credit profile.

For those with lower earnings, shared ownership, longer terms, and government schemes may provide accessible pathways. Always seek guidance from an FCA-authorised mortgage adviser to explore what’s feasible for your circumstances.

Important: A mortgage is secured against your home. Your home may be repossessed if you do not keep up repayments.