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Mortgage Advisor & Director
Many of the customers we help have an individual or household salary of £35,000, but what size mortgage can you afford with this income? Read on to find out.
How much mortgage can you borrow with a £35k salary?
Given that the majority of UK lenders offer mortgages of up to 4.5 times the applicants’ annual income, you can typically borrow a maximum of £157,500 with a £35,000 salary, but there are ways you could potentially secure a larger mortgage than this.
The most common way is to find a lender who uses a higher salary multiple to calculate mortgage affordability. A smaller number of them can offer mortgages based on 5-6 times the borrowers’ annual income, but you usually need a strong application to qualify for them.
If you were to be approved for a mortgage based on 5-6 times salary, you could potentially borrow between £192,500 and £210,000 with an annual income of £35,000.
There are other factors besides your salary that the mortgage provider will take into account when assessing your maximum borrow. This guide explores them in detail.
Calculate your maximum borrowing
Before we take a deeper dive into how affordability is calculated on a £35 salary mortgage, you can work out your maximum borrowing yourself by using our calculator below.
This tool has been set up to work out the maximum mortgage borrowing for this exact salary by default, but the income amount can be changed if you wish to make some comparisons.
Now that you’ve got a better idea of the amount you can borrow, you can compare mortgage rates for free on Teito or speak to one of our brokers - get started here.
Factors that affect your maximum borrowing
The three main factors that determine the amount you can borrow on a mortgage with a £35k salary are your total amount of declarable income (which might be more than just your main salary), your fixed outgoings and the overall strength of your application.
We will now explore how these variables come into play during the affordability assessment:
Total declarable income
Your annual salary of £35,000 might not be the only income you can declare on your mortgage application. Some lenders allow applicants to add any supplemental income they have to their salary so they can stretch their maximum borrowing further.
Not all side earnings will be accepted, but the following sources are generally approved:
- Benefits
- Freelance work
- Bonuses and commission
- Regular overtime
- Investments
- Rental income
It’s worth noting that some lenders are more flexible than others with supplemental income. Some will only accept a capped percentage of it, while others will let you declare it all.
Outgoings
Mortgage lenders will also review your fixed outgoings and offset them against your £35k salary plus any supplemental earnings when calculating your affordability.
No outgoings need to be declare but the ones listed below will likely be factored in:
- Council tax
- Utility bills
- Broadband
- Loan or credit cards agreements
- Car payments
- Childcare costs
The strength of your application
How strong your application is will determine the income multiple that you qualify for and therefore the size of the mortgage you can secure on a £35,000 salary.
Lenders will review the following factors to determine this:
- Deposit amount: Some lenders reserve 5-6 times salary mortgage for borrowers with higher deposits of between 20% and 60% of the property’s value.
- Profession: Mortgages based on 5.5 to 6 times income are often only available to applicants in certain professions, such as medicine, law and key worker roles.
- Credit history: This can have an indirect effect on maximum borrowing as having clean credit means access to a wider range of deals, including ones based on higher salary multiples. Bad credit mortgages usually have more stringent affordability.
- Other factors: General risk factors can also indirectly impact your maximum borrowing by limiting the number of lenders and deals you can access. Risk factors include being aged 75 or over during the mortgage term, being self-employed with less than two years’ accounts, and the property having non-standard construction.
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Example calculations
With household outgoings and total declarable income factored in, the mortgage you are applying for might be based on slightly more or less than £35,000.
The table below shows affordability calculations for similar amounts in this ballpark:
|
Income Amount |
4 Times Salary |
4.5 Times Salary |
5 Times Salary |
5.5 Times Salary |
6 Times Salary |
|
£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 |
£157,500 |
£175,000 |
£192,500 |
£210,000 |
|
£36k |
£144,000 |
£162,000 |
£180,000 |
£198,000 |
£216,000 |
|
£37k |
£148,000 |
£166,500 |
£185,000 |
£203,500 |
£222,000 |
How to get a £35k salary mortgage
Now that you know how much you could potentially borrow on a mortgage, you can take the next steps on your journey with us. Teito gives you the option to compare the latest rates and deals for free, and you can speak to one of our brokers for bespoke advice at any point.
Here are just some of the reasons people choose us for their mortgage needs:
- You can access the latest mortgage rates in seconds
- Our brokers can access exclusive mortgage deals
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare rates and deals and take advantage of a free, no-obligation chat with a whole-of-market mortgage broker? Get started here.
FAQs
Some mortgage lenders offer specialist ‘large loan’ deals for borrowers applying for mortgages starting at around £500,000. With a salary of £35,000, you are unlikely to qualify for one of these products unless you are asset-rich or have high supplemental income.
Moreover, some lenders place higher income requirements on interest-only mortgages. You should have some options if this repayment type is your preference, but to access this corner of the market in its entirety you will need household income of £50,000 plus.
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.