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An annual salary of £100,000 would make you a high earner, but what size mortgage can you afford with this amount of income? Read on to find out.
What size mortgage can you get with £100k income?
With an annual salary of £100,000, you could potentially borrow between £450,000 and £600,000 on a mortgage. This is because most lenders will take that salary and multiply it by anywhere between 4.5 and 6 to arrive at your maximum mortgage borrowing.
There will be more lenders available if you only need to borrow 4.5 times income (£450k), as not all providers have the capacity to offer mortgages based on 5-6 times salary.
If you are applying for a joint mortgage where the combined income of both applicants amounts to £100k, the lender will base your borrowing capacity on the same calculation.
Important: Salary multiples can only give you a rough idea of your maximum mortgage borrowing. Other factors will be taken on board during your affordability assessment and these variables will help determine the exact amount you can borrow.
Calculate your maximum mortgage borrowing
You can use our calculator below to get an idea of the amount you can borrow with a household salary of £100,000. Hit the ‘calculate’ button to get some quick results. This tool is set to generate results for £100k by default but you can change the salary amount manually.
Now that you’ve run your calculations, you can start comparing mortgage rates for free on Teito or speak to one of our brokers if you need some support - get started here.
Factors that determine your exact mortgage size
The exact amount you can borrow on a mortgage will come down to more than the size of your salary, in this case £100,000. Mortgage lenders will take numerous factors on board when calculating affordability. Read on to find out more about the variables they will review.
Total declarable income
Your annual salary of £100k might not be the only income you can declare for your mortgage affordability assessment. Some lenders allow applicants to submit supplemental earnings on top of their main salary. The following income sources are usually accepted:
- Benefits
- Freelance work
- Bonuses and commission
- Regular overtime
- Investments
- Rental income
It’s worth noting that some lenders will only allow you to declare a capped percentage of the above, while others will accept 100% of them in addition to your salary.
Outgoings
Mortgage lenders will also review your fixed monthly outgoings during the affordability assessment and offset them against your £100k salary plus supplemental income.
Not all of your expenditure will be deducted from your declarable income, but lenders will consider the below outgoings when calculating what size mortgage you qualify for:
- Council tax
- Utility bills
- Broadband
- Loan or credit cards agreements
- Car payments
- Childcare costs
How much deposit you have
The size of your deposit will have an indirect impact on the size of the mortgage you can secure with £100k income. This is because you will have a wider range of deals to choose from, including ones based on higher income multiples, with a larger deposit.
Some lenders reserve their highest income multiples (5-6 times income) for borrowers with lower loan-to-value (LTV) ratios of between 60% to 80% (20-40% deposit).
Profession
Even with a salary as high as £100k, you might struggle to access the highest income multiples unless you are in a specific line of work. The minority of lenders who offer six times salary mortgages tend to reserve them for applicants in the following professions:
- Medicine
- Law
- Emergency services
- Military
- Civil service
- Surveyors
- Architects
- Other key workers
Other factors
If there are any risk factors present in your application, this can have an indirect effect on the amount you can borrow. Certain mortgage deals, especially ones based on higher income multiples, might be out of your reach if any of the following applies:
- You have bad credit
- You are self-employed with less than two years accounts
- You will be over 75 years of age during the mortgage term
- You are buying a non-standard construction property
It is still possible to get approved for a mortgage with risk factors like these going against you, but qualifying for the higher income multiples is more difficult.
Calculations all done? Here are your options now...
Example calculations
Given that your declarable income might be slightly more or less than £100k once supplemental earnings and outgoings are factored in, the table below shows example calculations for various income amounts within this ballpark, for comparison purposes.
|
Income Amount |
4 Times Salary |
4.5 Times Salary |
5 Times Salary |
5.5 Times Salary |
6 Times Salary |
|
£97k |
£388,000 |
£436,500 |
£485,000 |
£533,500 |
£582,000 |
|
£98k |
£392,000 |
£441,000 |
£490,000 |
£539,000 |
£588,000 |
|
£99k |
£396,000 |
£445,500 |
£495,000 |
£544,500 |
£594,000 |
|
£100k |
£400,000 |
£450,000 |
£500,000 |
£555,000 |
£600,000 |
|
£101k |
£404,000 |
£454,500 |
£505,000 |
£555,500 |
£606,000 |
|
£102k |
£408,000 |
£459,000 |
£510,000 |
£561,000 |
£612,000 |
Apply for a £100,000 salary mortgage
Now that you have a better idea of the amount you can borrow with a £100,000 salary, you can take your first steps towards a mortgage application by comparing rates for free on Teito or speaking to one of our mortgage brokers, if you need a little help and guidance.
Here are just some of the reasons people choose us for their mortgage needs:
- You can access the latest mortgage rates for free
- Our brokers can arrange exclusive deals for borrowers with £100k salaries
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare £100k salary mortgage rates for free and take advantage of a free, no-obligation chat with a whole-of-market mortgage broker? Get started here.
FAQs
Yes. You would be classed as a high earner on this salary and some lenders have exclusive mortgage deals for borrowers with this amount of income. Special features you could take advantage of include flexible features (like the option to make uncapped overpayments), the option to borrow based on a higher income multiple, and wider product choice.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.