Calculate and maximise how much you could borrow by getting expert guidance on your mortgage application
Our professionals closely collaborate with certified mortgage advisors to ensure factual verification while keeping a close eye on developments in the financial industry.
Although income multiples are typically the basis for mortgage lending for residential properties, different mortgage providers employ different formulas.
We’ll go over how to determine your maximum mortgage loan amount and how mortgage lenders determine affordability.
Yes, you can get a mortgage on a £20k salary in the UK However, the amount you can borrow will depend on several factors, including your credit score, deposit size, and the lender’s affordability criteria.
Most lenders will consider lending up to 4. 5 times your yearly salary, which means that if you make £20,000, you could be able to borrow up to £90,000. But, depending on the situation, some lenders might be prepared to pay up to five or even six times your income.
Comparing various lenders is essential to obtaining the best possible mortgage deal. Additionally, you might want to think about working with a mortgage broker, who can assist you in locating the best mortgage for your needs.
Here are some tips for getting a mortgage on a £20k salary:
- Make sure you have a good credit score. This will help you get the best interest rates.
- Save up a deposit. The larger your deposit, the less you will need to borrow and the better your chances of getting approved.
- Shop around and compare different lenders. Don’t just go with the first lender you find.
- Consider using a mortgage broker. A mortgage broker can help you find the best deal for your circumstances.
Here is a table showing how much you could potentially borrow on a mortgage based on your salary and the lender’s affordability criteria:
| Salary | 4.5 Times Income | 5 Times Income | 6 Times Income |
|---|---|---|---|
| £20,000 | £90,000 | £100,000 | £120,000 |
| £25,000 | £112,500 | £125,000 | £150,000 |
| £30,000 | £135,000 | £150,000 | £180,000 |
| £35,000 | £157,500 | £175,000 | £210,000 |
| £40,000 | £180,000 | £200,000 | £240,000 |
Please be aware that this is only a guide and that your specific situation will determine the actual amount you are able to borrow.
It’s crucial to speak with a mortgage advisor if you’re thinking about getting a mortgage on a salary of £20,000 in order to receive tailored guidance. They will be able to evaluate your unique situation and assist you in locating the greatest mortgage offer.
Here are some additional resources that you may find helpful:
- The Money Advice Service: https://www.moneyadviceservice.org.uk/en/articles/mortgages
- The Financial Conduct Authority: https://www.fca.org.uk/consumers/mortgages
- The National Association of Estate Agents: https://www.naea.co.uk/
I am not a financial advisor, and this is not financial advice. Before making any financial decisions, you should always consult a licensed financial advisor.
£50K to £60k per year
The table below shows example calculations for maximum borrowing based on salaries between £50,000 and £60,000 per year.
| Salary | 4.5 Times Income | 5 Times Income | 6 Times Income |
|---|---|---|---|
| £50,000 | £225,000 | £250,000 | £300,000 |
| £52,000 | £234,000 | £260,000 | £312,000 |
| £44,000 | £198,000 | £220,000 | £264,000 |
| £54,000 | £243,000 | £270,000 | £324,000 |
| £56,000 | £252,000 | £280,000 | £336,000 |
| £58,000 | £261,000 | £290,000 | £348,000 |
| £60,000 | £270,000 | £300,000 | £360,000 |
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£35K to 39K per year
The table below shows example calculations for maximum borrowing based on salaries between £35,000 and £39,000 per year.
| Salary | 4.5 Times Income | 5 Times Income | 6 Times Income |
|---|---|---|---|
| £35,000 | £157,000 | £175,000 | £210,000 |
| £37,000 | £166,500 | £185,000 | £222,000 |
| £39,000 | £175,500 | £195,000 | £234,000 |
Can I get a mortgage on 20k a year UK?
Can you borrow £20K from a mortgage?
There are mortgage providers who won’t go below £30,000, but the good news is that others draw the line at £20,000. With the average house price in the UK now exceeding £350,000, it’s unlikely you will be wanting to borrow £20k as a substantial percentage of your property.
Can you get a mortgage under £30K?
Yes, but this is considered a very small mortgage amount and some lenders have minimum loan caps which prevent them from offering mortgages of this size. There are mortgage providers who won’t go below £30,000, but the good news is that others draw the line at £20,000.
How many times can you get a mortgage based on income?
In some cases, you could find lenders willing to go up to 5 times income, or even 6 times income under the right circumstances. Those who wish to borrow based on higher income multiples usually need to speak to a mortgage broker to find a specialist lender.
How much a mortgage can you afford?
Just make sure to pay your balances on time and keep your credit card balances low. Mortgage lenders generally offer between 3 to 4.5 times your annual income. To determine how much you can qualify for, use the above calculator. While it is not an official amount, it will give you an idea how much home you can afford.