Income needed for a £350,000 mortgage in the UK
As mortgage brokers we receive hundreds of enquiries from people asking “How much can I borrow?” or “Am I able to get a £350,000 mortgage? What would my monthly mortgage payment be?”
Borrowers will have usually done some research and know roughly how much they can borrow and whether it is possible with their income. Many borrowers use an online mortgage calculator before enquiring.
What can I get with a £350k mortgage?
Many people are concerned because they were denied a mortgage or are applying for a mortgage with poor credit.
But even with bad credit it’s often possible to get a mortgage – we will know the best lenders to approach on your behalf.
Contact us today for free mortgage advice. We will then introduce you to a mortgage lender who will be suitable for you.
Use our online mortgage calculator as a guide for your monthly repayments now
What salary do you need to get 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 and £70,000 to qualify for a mortgage of £350,000.
Keep in mind that if there is more than one applicant for a mortgage, mortgage lenders will base their affordability assessment on both incomes. So if you apply for a mortgage with someone else, you’ll be able to borrow more money than if you made an application on your own.
Take a look below at our mortgage affordability calculator to find out how much money you can borrow based on your monthly income. You can also contact us directly for mortgage advice.
See our affordability section for more information about the salary that you will need to get a mortgage of £350,000. 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 products than if you conducted your own search, as some lenders only work with brokers and don’t sell mortgages directly to borrowers.
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
If you’re employed, most lenders will accept 100% of your annual income; but they may take a differing approach to commissions, overtime, or bonuses.
Self-employed borrowers will need to prove their income by providing accounts or tax statements from HMRC.
Learn more about mortgages for self-employed workers by reading our guide.
What is a mortgage lender’s approach to declared income?
Some lenders allow 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 as declarable income
- Some lenders allow you to declare freelance work you do on top of your usual job
- Buy-to-let lenders offer mortgages based on rental income, not personal income
How long have you been employed?
For mortgage approval lenders will also consider the length of your employment. Some require at least six months. Others are happy with three months. A few are happy to accept applications from people starting a new role and applying for a mortgage.
Can you afford the monthly mortgage payment?
The amount you can borrow will be determined by the lender’s affordability assessment. These vary between lenders.
A lender’s affordability assessment will look at both your income and outgoings.
Many lenders also use income multiple limits to limit the maximum loan amount by multiplying your annual income 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 applying for a second charge mortgage, you may be eligible for up to 10x your income.
A mortgage broker has access to more deals than a mortgage comparison site. Get started to discover more options and increase your chances of getting approved for a mortgage.
What income is required to get a £350,000 mortgage for a buy-to-let?
When you apply for a buy-to-let mortgage, the lender will work out how much to lend to you based on the achievable rental income from the property.
However, some will also expect you to earn a minimum of £25,000 from your job.
Lenders normally want the rental income to be between 125% and 145% of your monthly mortgage payment, assuming the mortgage is interest-only.
Can you afford a £350,000 mortgage?
When determining whether you are able to pay a £350,000 mortgage, there are many other factors that the lender will consider.
- Your outgoings: If you have debt such as loans or credit cards, or dependent children, this could limit the amount you can borrow.
- The amount you have as a deposit: The bigger the deposit you have, the more chance you have of your mortgage being approved.
- Term length: Spreading your mortgage debt over a longer term means you will pay less each month, but be charged more interest overall.
Check today if your income is sufficient 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.
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.