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It is possible to get a mortgage earning £30,000 per year but the exact amount you can borrow may vary. In this guide, you will learn how to calculate your maximum borrowing, how to start your mortgage application and more.
How much can you borrow on a mortgage with a £30k salary?
You would qualify for a mortgage of around £135,000 with a salary of £30k. This is based on 4.5 times your earnings, the standard income multiple used by most UK mortgage lenders.
This is the average amount you may be able to borrow, but under the right circumstances, it could be possible to secure a mortgage of up to £180,000, as some mortgage providers use higher income multiples (up to x6 salary) to determine maximum borrowing.
The income multiple you qualify for and the exact amount you can borrow will be impacted by a range of factors, which we will explore in depth in this article.
Calculate your mortgage affordability
You can use the calculator below to work out how much you can potentially borrow on a mortgage with a salary of £30,000. Hit the ‘calculate’ button below to get quick results.
Now that you have a better idea about the amount you can borrow, you can compare mortgage rates and deals for free on Teito as your next step - get started here.
Factors that will affect your maximum borrowing
There are several factors that will have an impact on the amount you can borrow on income of £30,000. Some will have a direct effect, while others will have an indirect influence.
The main variables to be aware of are as follows:
- Outgoings: Fixed monthly outgoings such as council tax, utility bills, broadband, loan or credit cards agreements, car payments and childcare costs may be deducted from your £30k salary before the lender applies their income multiple.
- Supplemental income: Some lenders will let you declare any extra income you have on top of your £30k salary. This includes bonuses, commission, investments, benefits and more, with the income multiple applied to the total amount.
- Credit history: The overall strength of your application will play a part in determining which income multiple you will qualify for. Having bad credit might mean you are restricted to the standard 4.5 times salary, but some lenders might go higher if the type of bad credit you have is non-severe, or it occurred long ago.
- Deposit amount: Borrowers with higher deposits can often access higher income multiples than the standard 4.5 times salary, but those with 5-10% aren’t necessarily limited to the lowest income multiples if their application is strong overall.
- Employment: Your employment capacity and profession you are in can affect the income multiples you are offered. Self-employed individuals with less than two years’ proof of income might find it harder to access the higher income multiples, while those in high paying professions like medicine and law may be offered 6x income.
If you need to access a 5-6 times salary mortgage, it is advisable to speak to a mortgage broker as they will be able to match you with the lender who is best placed to offer this.
Example calculations
With outgoings and supplemental income factored in, the total amount of income your mortgage lender applies their salary multiple to might be slightly higher or lower than £30k.
The table below shows how much you can borrow with a range of different salary amounts and income multiples that UK lenders use, including some less common ones:
|
Salary Amount |
4 Times Salary |
4.5 Times Salary |
5 Times Salary |
5.5 Times Salary |
6 Times Salary |
|
£29k |
£116,000 |
£130,500 |
£145,000 |
£159,500 |
£174,000 |
|
£30k |
£120,000 |
£135,000 |
£150,000 |
£165,000 |
£180,000 |
|
£31k |
£124,000 |
£139,500 |
£155,000 |
£170,500 |
£186,000 |
|
£32k |
£128,000 |
£144,000 |
£160,000 |
£176,000 |
£192,000 |
|
£33k |
£132,000 |
£148,500 |
£165,000 |
£181,500 |
£198,000 |
|
£34k |
£136,000 |
£153,000 |
£170,000 |
£187,000 |
£204,000 |
|
£35k |
£140,000 |
£157,000 |
£175,000 |
£192,500 |
£210,000 |
How to apply for a £30,000 salary mortgage
Your first step was to get an idea of how much you can borrow on your salary. Now that you’ve done that, you can compare mortgage rates and deals for free on Teito and take advantage of a free, no-obligation chat with one of our brokers as part of the service.
Here are just some of the reasons why our customers choose us:
- You can browse rates from over 90 lenders for FREE
- Our brokers have access to exclusive deals
- We are 5-star rated on leading review websites
- It takes minutes to secure an agreement in principle
Ready to get started? You can source your own mortgage in real-time here.
FAQs
Buy-to-let mortgage affordability is usually based on the projected rental income for the property you want to buy. In other words, how much rent you can generate from it.
Some lenders, however, will expect you to have personal income as well, especially if you are a first-time landlord. The good news is that £30k will suffice in most cases as the typical requirement is less than this, with lenders usually asking for around £25k.
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.
