Head of Content
Mortgage Advisor & Director
An annual salary of £60,000 is higher than the national UK average, but what size mortgage will you qualify for with this amount of income? Read on to find out.
How much mortgage can you borrow with £60k income?
With an annual household income of £60,000 you could potentially borrow anywhere between £270,000 and £360,000 on a mortgage. This is because most UK mortgage providers cap their maximum lending at between 4.5 times salary and 6 times salary.
The exact mortgage amount you qualify for will depend on the strength of your application and other factors such as your outgoings and any supplemental income you have.
With a stronger application, you will stand a better chance of securing a higher income multiple, although it should be noted that 6 times salary is usually reserved for borrowers in highly regarded professions, such as medicine, law or the civil service.
Read more about how mortgage affordability is calculated in our standalone guide.
Calculate your maximum borrowing
Hit the ‘calculate’ button below to work out approximately how much you can borrow on a mortgage with £60,000 income. The salary amount can be manually adjusted if you wish.
Now that you have run your initial calculations, you can move ahead with the next steps on your mortgage journey by comparing rates for free on Teito - get started here.
Factors that will affect your mortgage size
The exact mortgage size you qualify for earning £60k will depend on a range of factors. Some will have a direct effect on the loan amount offered and others an indirect one.
The variables below will play a part on determining your maximum borrowing:
- Total amount income declared: £60k income is considered healthy enough to grant you access to some of the higher income multiples, but you may be able to stretch your affordability by declaring any supplemental income you may have, such as benefits, investments, rental income and regular bonuses and commission.
- Outgoings: Lenders will factor in fixed outgoings too, such as Council tax, utility bills, broadband, loan or credit cards agreements, car payments, and childcare costs. Having substantial outgoings can decrease the amount you can borrow.
- Employment situation: Working in a prestigious profession such as medicine or law can help you access 6 times salary mortgages. Being self-employed, meanwhile, might mean lower income multiples if you have less than 2-3 years’ accounts.
- Other factors: Having bad credit, a low deposit (less than 10%), being age 75 during the mortgage term or buying a non-standard construction property are all classed as risk factors that can restrict the income multiple that you qualify for.
If you need to borrow the maximum amount possible, your best bet is to speak to a whole-of-market mortgage broker as they will match you with the lender who is best placed to offer you the highest income multiple possible and accept 100% of your total income.
Calculations all done? We can help you with your next steps!
Example calculations
With outgoings and supplemental income factored into the equation, the amount of declarable income your mortgage is based on might be slightly more or less than £60,000. The table below shows how much you can borrow with similar income in this ballpark.
|
Salary Amount |
4 Times Salary |
4.5 Times Salary |
5 Times Salary |
5.5 Times Salary |
6 Times Salary |
|
£58k |
£232,000 |
£261,000 |
£290,000 |
£319,000 |
£348,000 |
|
£59k |
£236,000 |
£265,500 |
£295,000 |
£324,500 |
£354,000 |
|
£60k |
£240,000 |
£270,000 |
£300,000 |
£330,000 |
£360,000 |
|
£61k |
£244,000 |
£274,500 |
£305,000 |
£335,500 |
£366,000 |
|
£62k |
£248,000 |
£279,000 |
£310,000 |
£341,000 |
£372,000 |
|
£63k |
£252,000 |
£283,500 |
£315,000 |
£346,500 |
£378,000 |
Applying for a £60,000 salary mortgage
Now that you have run some calculations, you can get started on your mortgage journey by comparing rates and deals for free on Teito. As part of the service, you will be offered a free, no-obligation chat with one of our mortgage brokers for bespoke advice about your options.
Here are just some of the reasons people choose Teito for their mortgage needs:
- You can compare rates for FREE in seconds
- Our broker 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 speak to a whole-of-market broker? Get started here.
FAQs
Potentially, yes. Some mortgage lenders reserve mortgage deals based on 5-5.5 times salary for borrowers earning £60k per year or more, so this amount of income can help you borrow more than the standard 4.5 times income, at lenders’ discretion.
Salary is not the only factor lenders review when deciding which multiple to use. They may also take the loan-to-value ratio into account and the strength of your application.
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.