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You are likely to have mortgage options if you earn £70,000 per year, but exactly how much could you borrow on this salary? Read on to find out…
What size mortgage can you get on a £70k salary?
With annual income of £70,000, most UK mortgage lenders would be willing to offer you a mortgage of up to £315,000. This is based on 4.5 times your salary, the standard calculation that the majority of mortgage providers use to work out maximum borrowing.
If you need to borrow more than this, you could have options, as there are a smaller number of lenders who use higher income multiples, all the way up to 6 times income.
Through one of these mortgage providers, you may be able to borrow as much as £420,000, but keep in mind that it can be difficult to find lenders offering the highest income multiple.
Lenders take a range of factors into account when deciding which income multiple you qualify for. See our complete guide to mortgage affordability for information on this.
Calculate your mortgage affordability
You can use our calculator below to work out how much you could potentially borrow on a mortgage with an annual salary of £70k. The tool is set up to produce calculations for this amount by default, but you can change the income amount for comparison purposes.
Now that you have run some calculations, you can compare mortgage rates for free on Teito or get bespoke advice from one of our brokers - get started here.
What factors will determine your maximum borrowing?
There are variables that directly affect the maximum mortgage that you qualify for, besides your annual salary, and factors that will indirectly influence it by determining which income multiple you qualify for. Read on to learn more about each of these factors:
Total income and outgoings
These have a direct impact on the amount you can borrow as they will determine exactly how much income the lender will use for their affordability calculations.
If you have a £70k salary, this might not be the only income you have. Some lenders will let you declare supplemental capital as well. This includes things like:
- Benefits
- Freelance work
- Bonuses and commission
- Regular overtime
- Investments
- Rental income
Some mortgage providers will only allow you to declare a capped percentage of the above but others will accept 100% along with your £70,000 annual salary.
Not all of your outgoings will be deducted from your income before the lender runs their calculations, but any of the below can affect the size of the mortgage you qualify for:
- Council tax
- Utility bills
- Broadband
- Loan or credit cards agreements
- Car payments
- Childcare costs
Deposit amount
The loan-to-value (LTV) ratio can have an indirect effect on your total mortgage borrowing as some lenders reserve their higher income multiples for borrowers with lower LTVs.
For example, some lenders would only offer a £70k salary mortgage based on 5 times income or higher if the LTV is around 60-85%, which means you would have to put down anywhere between 15% and 40% deposit. Any less might limit you to 4.5 times salary.
Employment situation
Some lenders will only offer 5.5-6 times salary mortgages to applicants in prestigious professions, like medicine and law, where income and prospects are typically strong.
There are exceptions to this, as some lenders offer their highest income multiples to borrowers with strong applications, but it will certainly help your cause getting a £70k mortgage based on up to 6 times salary if you work in one of these fields.
Furthermore, your trading style is also significant. If you work in a professional sector in a self-employed capacity, your chances of securing a mortgage based on a higher income multiple will be much greater if you have at least two years’ accounts to submit.
Other factors
Other factors that determine the overall strength of your application include your credit history, age and the property type. These variables don’t directly impact mortgage affordability, but if there are risk factors around them, there is a stronger possibility that you may have to settle for a mortgage based on 4.5 times income, if you are approved at all.
For example, having bad credit can limit the number of mortgage deals that you qualify for, as can being 75 or over during the term of the mortgage. Certain property types, meanwhile, such as non-standard construction homes, often have limited lenders available.
Calculations all done? Here are your options now...
Example calculations
Once your total income and outgoings have been tallied up, the amount of income you can declare for your mortgage application might be slightly more or less than £70,000. With this in mind, the table below shows example calculations for similar income amounts.
|
Salary Amount |
4 Times Salary |
4.5 Times Salary |
5 Times Salary |
5.5 Times Salary |
6 Times Salary |
|
£67k |
£268,000 |
£315,000 |
£350,000 |
£368,500 |
£420,000 |
|
£68k |
£272,000 |
£306,000 |
£340,000 |
£374,000 |
£408,000 |
|
£69k |
£276,000 |
£310,500 |
£345,000 |
£379,500 |
£414,000 |
|
£70k |
£280,000 |
£315,000 |
£350,000 |
£385,000 |
£420,000 |
|
£71k |
£284,000 |
£319,500 |
£355,000 |
£390,500 |
£426,000 |
|
£72k |
£288,000 |
£324,000 |
£360,000 |
£396,000 |
£432,000 |
How to apply for a £70k income mortgage
Now that you have a better idea of the amount you can borrow, you can take the next step on your mortgage journey with Teito. You can compare the latest rates and deals for free through us and access support from a whole-of-market broker at any time.
Here are just some of the reasons people source their mortgage on Teito:
- You can access the latest mortgage rates in seconds
- Our brokers are whole-of-market and can access exclusive deals
- We are 5-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare mortgage rates for free and take advantage of a free, no-obligation chat with a whole-of-market mortgage advisor? Get started here.
FAQs
Your £70,000 annual salary will be combined with the other applicant’s income and the joint mortgage will be based on the total amount of declarable household earnings. This includes any supplemental income the lender accepts and combined outgoings will be factored in.
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.