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Income for a £350,000 mortgage

Author: Myles Robinson - Expert Finance Advisor

Posted: Jul 1, 2022

Income for £350,000 mortgage

As mortgage brokers we receive hundreds of enquiries from people asking “How much can I borrow?”, am I able to get a £350k mortgage? What would my monthly mortgage payment be?. Most often, a borrower will of done some research and know an estimate of how much they can borrow and whether it is possible with their income. Many borrowers use an online mortgage calculator before enquiring.

Many people are concerned because they were denied a mortgage, or are applying for a mortgage with poor credit. The good news? Even if your credit is not perfect, the mortgage lenders that we work with can find the right mortgage for you.

Contact today for free mortgage advice. We will then introduce you to a mortgage lender who will be suitable for you. All mortgage providers have different lending criteria therefore we can find a mortgage lender tailored for you.

Use our online mortgage calculator as a guide for your monthly repayments now

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What salary do you need in order to obtain a mortgage for £350,000?

How much income do I need is a very common question. According to the income multiples offered by mortgage lenders, you will need to earn between £65,000-£70,000 to qualify for this mortgage.

Keep in mind that if there is more than one applicant for a mortgage, mortgage lenders will base the affordability assessment on both the incomes of the applicants. Therefore, your combined income with the other applicants will have to be at least this amount. This is known as a joint mortgage payment.

Take a look below at our mortgage affordability calculator to find out how much money you can borrow based on your monthly income. If you prefer you can contact us, the mortgage broker for free mortgage advice. This could save you time and money.

See our affordability section for more information about the salary that you will need to get a mortgage of £350k. Send us an enquiry and we will refer you to the expert mortgage lenders we work with.

A mortgage broker can help you access 30% more mortgage markets. Mortgage brokers introduce you to the best mortgage lenders on the market.

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How does a mortgage lender assess income?

Each lender has a different approach to monthly income and annual income, this will affect the amount they will lend along with personal information and other debts.

These are the main factors:

Type of income

While some will accept 100% of your annual income, others may take a different approach, especially if that income isn’t earned in the traditional way like commissions, contracts, or bonuses. Learn how you can calculate your commission income for a mortgage application with an online mortgage calculator for an estimate.

This is particularly true for self-employed people. Lenders all take different accounting figures and give their own opinions on how the applicant’s business is doing for mortgage approval. Learn more about mortgages for self-employed by reading our comprehensive guide.

What is a mortgage lender’s declared income?

Some lenders permit you to declare more income than your PAYE salary. As mentioned above, there are specialist mortgage lenders for self-employed borrowers and providers who accept income, bonuses, and regular overtime.

Keep these things in mind:

  • Mortgage lenders will accept benefits from declarable income
  • Some lenders allow you to declare freelance work as a side hustle.
  • Lenders offer mortgages that are based on rental income
  • Lenders will consider any legal income source that you may have.

What length of time you have been in employment

For mortgage approval lenders will also consider the length of your employment. Some require at least 6 months. Others are happy with 3 months. A few are happy to accept applications from people starting a new role and applying for a mortgage. A few are even open to considering future positions within the next 3 months (as long as there is a contract).

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Can you afford the monthly mortgage payment?

The amount you can borrow will be determined by the lender’s affordability assessment. They are all different.

To calculate the appropriate disposable income, most people take into account income and outgoings.

Many lenders also use income multiple limits to limit the maximum loan amount by multiplying your annual income (as well as any other income sources, depending on the lender), by a fixed number.

It is typically between four to five times your earnings. However, some lenders will offer multiples of six. If you are seeing a secured mortgage (second charge mortgage), you may be eligible for up to 10x your income.

A Mortgage Broker has access to more deals that any other comparison site. Get started to discover more options and increase your chances of getting approved for a mortgage. Constitute financial advice here today.

What income is required to get a £350k mortgage for a buy-to-let?

Your income will be considered when you apply for a mortgage. Typically, around £25,000 per year is the minimum. However, lenders usually decide how much they’ll lend you based on the rental income you can generate on the property.

Lenders expect you to earn between 25% and 45% more than your monthly mortgage payment, assuming the mortgage is interest-only.

How does the affordability of a £350K mortgage affect your decision?

When determining whether you are able to pay a £350K mortgage loan, there are many other factors that the lender will consider.

  • Your outgoings A mortgage with debt such as outstanding loans or dependent kids could limit the amount you can borrow. However, this will be offset by the income that you have.
  • The amount you have to deposit:
    The amount that you are able to deposit in advance will affect how your mortgage payments are managed. A higher deposit equals borrowing less. Lenders are more likely to offer favourable rates if you can put down more than the minimum requirements.
  • Term length
    Spreading your mortgage debt over a longer-term means you will pay less each month, but be charged more interest overall. How manageable your monthly payments will be will depend on the term you choose. You should consider how much you can afford each month.

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Check today if your income is sufficient to qualify for a £350,000 loan from one of our mortgage lenders

Our mortgage brokers and mortgage lenders are experts in their fields. They have successfully completed a 12-module LIBF-accredited course and have access to the entire market so they know which lenders will lend to them. It’s no surprise that Feefo consistently rates us 5 stars.

Talk to an expert about mortgage affordability

Our free mortgage advice is available to answer your questions or to make an enquiry online.

Contact us today and let us find the right broker for you. There is no charge and absolutely no obligation to improve your credit rating.

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