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Welcome to our mortgage affordability guide for borrowers with salaries of £50,000. Here you will learn how much you can borrow with this amount of income, how to begin your mortgage journey and much more.
What size mortgage can you get with a £50,000 salary?
With an annual salary of £50,000, the average mortgage size you would qualify for is around £225,000. This is based on the typical calculation that most UK mortgage lenders use to work out maximum borrowing, four times the applicant’s annual income.
Although the above calculation is a typical borrowing amount, it may be possible to borrow more than this, as some lenders use higher income multiples, up to 5-6 times salary. With this in mind, the maximum most applicants could borrow with this salary is £300,000.
The income multiple the lender uses and the exact size mortgage you can secure will depend on a range of variables which we will discuss throughout this article.
Calculate your maximum mortgage borrowing
You can use our calculator below to work out how much you can borrow on a mortgage with a £50k salary. The calculator is automatically configured to calculate based on this income amount, but you can change the figure manually for comparison purposes.
Now that you have a clearer understanding of how much you can borrow, you can compare mortgage rates for free on Teito or get expert advice from a broker - get started here.
Factors that will affect your maximum borrowing
The maximum amount you can borrow will be dictated by a range of different variables, some of which impact the amount of income you can declare, while others will have an indirect effect by determining the income multiple you qualify for. The main factors are:
Total income and outgoings
Some mortgage providers will allow you to declare supplemental income on top of your £50k salary, which means they would apply their income multiple to your total income.
Supplemental income types you could potentially declare include:
- Benefits
- Investment income
- Bonuses and commission
- Regular overtime
- Rental income
Your total household income will be offset against your fixed outgoings when the lender is calculating the exact amount you can borrow. The following will be factored in:
- Council tax
- Utility bills
- Broadband
- Loan or credit cards agreements
- Car payments
- Childcare costs
The strength of your application
Those with the strongest mortgage applications are the most likely to qualify for deals with higher income multiples, so your eligibility will indirectly impact your maximum borrowing.
To assess the strength of your application, your lender will look at the following factors:
- Credit history: It is possible to get a bad credit mortgage, but they are usually based on 4.5 times income, unless your issues are minor or occurred a long time ago.
- Deposit amount: Mortgage deals with higher income multiples are often reserved for borrowers with lower loan-to-value (LTV) ratios, so putting down extra deposit can help you qualify for a mortgage larger than 4.5 times your income.
- Other factors: Other risk factors that could prevent you from accessing higher income multiples include being 75 or over during the mortgage term or buying a non-standard construction home. It is possible to get a mortgage under these circumstances, but having access to fewer deals might mean lower income multiples.
Your employment situation
If you work in a high paying profession that is known to have good prospects, such as medicine or law, you may be able to access six times salary mortgages.
The way you trade will also have an indirect impact on maximum borrowing. For example, if you are newly self-employed, you might be limited to the lower income multiples.
Example calculations
When outgoings and supplemental income has been factored in, the amount that the lender applies their income multiple to might be slightly more or less than £50k.
With this in mind, we have put together the table below showing example calculations for other amounts in this ballpark using a range of different income multiples.
|
Salary Amount |
4 Times Salary |
4.5 Times Salary |
5 Times Salary |
5.5 Times Salary |
6 Times Salary |
|
£48k |
£192,000 |
£216,000 |
£240,000 |
£264,000 |
£288,000 |
|
£49k |
£196,000 |
£220,500 |
£245,000 |
£269,500 |
£294,000 |
|
£50k |
£200,000 |
£225,000 |
£250,000 |
£275,000 |
£300,000 |
|
£51k |
£204,000 |
£229,500 |
£255,000 |
£280,500 |
£306,000 |
|
£52k |
£208,000 |
£234,000 |
£260,000 |
£286,000 |
£312,000 |
|
£53k |
£212,000 |
£238,500 |
£265,000 |
£291,500 |
£318,000 |
How to apply for a £50,000 salary mortgage
Now that you have run some calculations, your next steps should be to compare mortgage rates and speak to a broker about your options. You can source the mortgage you want in real-time for FREE on Teito and access support from one of our expert mortgage advisors.
Here are just some of the reasons people choose us for their mortgage needs:
- You can access rates from 90+ lenders in seconds
- Our brokers often have access to exclusive 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
Most buy-to-let mortgages are assessed based on rental income. The property will need to be capable of generating 125-145% of the mortgage repayments each month or you will not pass the lender’s affordability assessment.
However, some lenders will expect you to have personal income as well, especially if you are a first-time landlord. The good news is that £50,000 per year is more than enough as most lenders ask for a minimum of around £25,000.
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.
