How much do I need to earn to borrow 400K?

How Much Do You Need to Earn to Qualify for a £400K Mortgage?

It’s no secret that your income is one of the key factors in determining how much you can borrow. Many people ask, “How much do I need to earn for a 400K mortgage?” While there’s no single fixed figure, this article breaks down how much income you’ll likely need, what affects affordability, and how lenders calculate it in the UK.

How much do I need to earn to borrow £400K?

One of the most common questions we hear is, “How much do I need to earn for a 400K mortgage?” The maximum amount you can typically borrow for a mortgage in the UK is around 4.5 times your annual income. So, to qualify for a £400,000 mortgage, you’ll usually need to earn at least £89,000 per year.

Some lenders may offer up to 7 times your income if you have an excellent credit record and a strong financial profile. In that case, the required income for a £400K mortgage could be around £57,142. These figures are general guidelines — always check with your lender for a personalised estimate.

Factors that determine how much you can borrow

Lenders don’t base their decisions on income alone when assessing your mortgage eligibility. Other key factors include:

Loan-to-value ratio (LTV)

Your LTV ratio represents the percentage of the property’s value that you’re borrowing. A higher LTV means greater risk for the lender. For example, if you’re buying a £400,000 home and your lender allows 80% LTV, you’d need a deposit of £80,000.

Credit history

Your credit history plays a major role in determining how much you can borrow. A higher credit score can secure you better interest rates, while a poor score can limit your borrowing capacity.

Deposit amount

A larger deposit can help you qualify for a bigger mortgage, as lenders view borrowers with higher deposits as lower risk.

Source of income

Having a stable and reliable income is key. Even if your earnings are modest, consistent income streams can still make you eligible for a mortgage.

How much will a £400,000 mortgage cost me?

What type of mortgage will you be on?

Whether you choose a fixed-rate or variable-rate mortgage affects both your monthly repayments and total interest. Fixed-rate mortgages offer predictable payments, while variable-rate loans fluctuate with market rates.

How long do you want to pay off your mortgage?

The term length of your mortgage affects both your monthly costs and the total interest paid. Longer terms reduce monthly payments but increase total interest.

How can WIS Mortgages help you?

WIS Mortgages offers expert advice across a wide range of mortgage products in Kent, London, Essex, and Buckinghamshire. Whether you’re a first-time buyer or a homeowner looking to remortgage, our advisors can help you find the best deal.

WIS Business Protection

Our services include business protection, accountancy, and insurance solutions. WIS Business Protection provides risk management and insurance for businesses, while WIS Accountancy offers full financial planning services.

Contact us today or use our free mortgage calculators to find out how much you need to earn for a 400K mortgage and what your repayments might look like. Remember, a mortgage is secured against your home and may be repossessed if you fail to keep up with repayments.

FAQs – How Much Do I Need to Earn for a 400K Mortgage?

What salary do I need for a 400K mortgage in the UK?

Most lenders offer up to 4.5 times your annual income. To borrow £400,000, you’ll need a salary of roughly £89,000. Some lenders may extend up to 7 times income for applicants with strong credit, requiring around £57,142.

Can I borrow £400,000 with a lower salary?

It depends on your lender, deposit size, credit score, and loan-to-value ratio. A larger deposit or strong financial history may increase your borrowing potential even with a lower income.

Does the mortgage type affect affordability?

Yes. Fixed-rate mortgages offer predictable monthly payments, while variable-rate loans can rise or fall. The term and type of mortgage both influence affordability.

Do all lenders calculate borrowing the same way?

No. Each lender has its own lending criteria and income multiples. It’s always best to check directly with lenders or a mortgage broker for tailored calculations.