How To Get A Mortgage With £30,000 Salary | Mortgage Advisor Help

Let’s Talk Money and Mortgages

Introduction

Gemma: Hello and welcome back to our channel and podcast! My name’s Gemma, and here at WIS we talk about all things related to money, mortgages, and positive money mindset.

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On today’s episode of Let’s Talk Money and Mortgages, we are joined again by Ifthi. For those who haven’t seen our previous videos, Ifthi is a trained accountant and mortgage advisor who has been in the industry for over 11 years. He is also one of the founding directors here at WIS.

Welcome back, Ifthi! How are you doing today?

Ifthi: Hi, I’m very well, thank you. How are you?

Gemma: I’m good, thank you!

Q1: Can you get a mortgage if you earn £30,000 a year?

Ifthi: Good news — yes, you can!

A lot of banks have a minimum income requirement before you can apply for a mortgage, and it usually starts around £25,000. Many high street banks have this as their base level, so earning £30,000 means you meet that requirement.

It’s a good starting point, and most lenders will accept this income. While some banks may have slightly higher requirements, £30,000 is generally enough to qualify.

Q2: How much can you borrow with a £30,000 salary?

Ifthi: Typically, banks lend about 4.5 times your income. So on a £30,000 salary, you could expect a mortgage of around £135,000.

However, since the pandemic, some banks have become more flexible — especially for first-time buyers.

Some lenders are now offering up to 6 times your income, though this may come with a slightly higher interest rate.

That’s still great news, because house prices have gone up significantly, and having that extra borrowing power makes a real difference.

Q3: How does being a professional help with borrowing more?

Ifthi: If you’re a professional — for example, a doctor, lawyer, accountant, engineer, or dentist — some banks will look at your application more favorably.

They understand that your income is likely to grow quickly as your career develops.

For instance, a junior doctor might start on a modest salary, but their earnings can rise dramatically within a few years. Because of this, certain lenders will offer higher income multiples to professionals.

It’s always best to speak to a mortgage advisor who can identify which lenders provide these enhanced terms for your profession.

Q4: How can parents help with your mortgage?

A. Joint Borrower, Sole Proprietor (JBSP) Mortgage

Gemma: There’s something called a joint borrower, sole proprietor mortgage. Can you explain how that works, Ifthi?

Ifthi: Of course. This is a very useful scheme.

Sometimes, you can afford to pay the mortgage, but the affordability calculation doesn’t allow you to borrow enough.

That’s where the JBSP mortgage helps. In this setup, your parents’ income can be added to your application without adding their name to the property deeds.

So, for example, if you earn £30,000 and your parent earns £50,000, the lender can assess affordability on £80,000 combined income.

The great thing is, since the parents’ name isn’t on the deeds, they don’t have to pay the 3% additional stamp duty.

This can make a big difference in boosting your borrowing potential.

B. The “Bank of Mum and Dad” — Gifted Deposit

Gemma: And what about parents helping with a gift instead?

Ifthi: That’s another great option. Parents can gift money toward your deposit — this is often called the Bank of Mum and Dad.

It must be a gift, not a loan, because if it’s a loan, it counts as a financial commitment and affects affordability.

The bank will usually require a gift letter from your parents and bank statements to confirm the funds are legitimate.

This can make a big difference — not just by increasing your deposit but sometimes by improving your income multiple too.

For example, if your deposit increases from 10% to 25%, some lenders may offer a higher income multiple, moving from 4.5x to 5x, which means you can borrow more.

Q5: Can extending your mortgage term increase what you can borrow?

Ifthi: Yes, extending your mortgage term can sometimes increase your borrowing amount.

For most lenders, if you’re under 45 years old, you can extend your term to 30, 35, or even 40 years, which reduces your monthly repayments.

Lower monthly payments can improve affordability calculations, allowing the bank to lend you a bit more.

However, once you reach around 45 years old, lenders usually cap the term at 25 years, so this option works best for younger buyers.

Q6: What is shared ownership, and how can it help first-time buyers?

Ifthi: Shared ownership is a scheme run mainly by housing associations to help people get onto the property ladder.

Here’s how it works:

Let’s say the property is worth £300,000. The scheme might allow you to buy 50% (£150,000) and rent the remaining 50% from the housing association.

You’ll get a mortgage only on your share of the property, which makes it more affordable.

It’s a great way to start if you can’t afford to buy 100% outright.

The deposit is based only on your share (for example, 5% of £150,000), and you can increase your ownership later through a process called staircasing.

It’s worth noting that not all properties are available for shared ownership — it’s mainly limited to housing association developments.

Q7: What is the Help to Buy scheme?

Ifthi: The Help to Buy scheme is another excellent option — though it’s ending soon.

Under this scheme, the government lends you up to 20% of the property’s value (outside London), so you only need to find a 5% deposit and a 75% mortgage.

For example, on a £300,000 home, the government would contribute £60,000, meaning you’d only need a £240,000 mortgage.

However, the scheme is set to end in March 2023, so there’s limited time left.

If you’re interested, apply as soon as possible, as there’s high demand and strict build completion deadlines.

We’ve done a few videos explaining Help to Buy’s pros and cons, so check those out if you want more details.

Q8: What if I earn £30,000 and I’m just starting out — is it enough?

Ifthi: Absolutely — £30,000 is a good starting point.

I was earning less than that when I got my first mortgage!

The key thing is to start somewhere — it’s called the property ladder for a reason.

Many people wait for a pay rise, but house prices often rise faster than salaries, which can make buying harder later on.

So, if you can afford it now, it’s usually better than renting. Even if it’s just a starter home, you’ll build equity over time, which can help you move up to a bigger property later.

You might not be able to buy in London, but you can still find studios or one-bedroom homes within commuting distance.

And remember, you can combine options — for example, use Help to Buy, parental gifts, or joint borrower schemes together to make it work.

Q9: Any additional schemes or tips for saving a deposit?

Ifthi: Yes — consider using a Lifetime ISA (LISA).

It’s not a mortgage, but it’s a great government savings scheme that helps you save for your deposit.

The government adds a 25% bonus on top of what you save each year (up to £1,000 bonus annually).

Speaking to an advisor can help you understand how these schemes fit together and create a plan for your home purchase.

Q10: Final Advice

Gemma: Just a reminder — these points may or may not apply to everyone.

If you’re unsure whether they’re suitable for you, please speak to an advisor.

If you don’t have one, our contact details are below — we’re always happy to help.

⚠️ Important: A mortgage is secured against your home or property and may be repossessed if you do not keep up with repayments.

Thank you for joining us today.

We’ll be back next week with another episode of Let’s Talk Money and Mortgages.

Have a great day, stay safe, and we’ll see you again soon!