Head of Content
Mortgage Advisor & Director
Those with annual salaries of £80k are earning higher than the UK national average, but what size mortgage can you get on this income? Find out here.
How much mortgage can you borrow on £80k per year?
With an annual salary of £80,000 per year, most UK mortgage lenders would let you borrow a maximum of £360,000. This is based on 4.5 times your annual income, the standard calculation used by the majority of mortgage providers to establish borrowing limits.
Although this is the maximum you will be offered by most lenders, a smaller number of providers use higher income multiples and would therefore consider letting you borrow more.
These lenders set borrowing limits at between 5 and 6 times annual salary, which means you could get a mortgage of between £400,000 and £480,000 with an £80,000 salary.
Calculate how much you can borrow
You can use our mortgage calculator below to work out how much you can borrow with an annual income of £80,000. Simply hit the ‘calculate’ button to get started.
Now that you have a better idea of the amount you can borrow, you can compare mortgage rates for free or speak to a broker about your options - get started here.
Factors that determine your maximum borrowing
Salary multiples can give you a rough idea of your borrowing capacity, but mortgage affordability is more complex than this. The exact amount you can borrow will be based on a wide range of variables, some of which affect the income multiple you qualify for.
Below we explore the variables that determine the exact amount you can borrow with £80k income.
Total declarable income
Having a salary of £80,000 can help you qualify for the higher income multiples with certain lenders, as some reserve 5 times salary and up for higher earning borrowers.
However, it is your total declarable that will determine the exact amount you can borrow. Many mortgage applicants have other sources of income on top of their annual salary, and there are mortgage providers who will include supplemental earnings in their calculations.
Other sources of income you might be able to declare include:
- Benefits
- Freelance work
- Bonuses and commission
- Regular overtime
- Investments
- Rental income
Outgoings
Mortgage lenders take fixed outgoings into consideration and deduct them from your total declarable income to arrive at your maximum borrowing. Not all of your expenditure will be factored into their calculations, but the following outgoings may be taken onboard:
- Council tax
- Utility bills
- Broadband
- Loan or credit cards agreements
- Car payments
- Childcare costs
How much deposit you have
The amount of deposit you can put down will have an indirect effect on your maximum borrowing as this will determine the loan-to-value (LTV) ratio. Some lenders reserve their higher income multiples (x5 salary plus) for borrowers with 60-80% LTV. This means that you would need to put down a deposit of 20-40% to access the highest income multiples.
Profession
There are lenders who only offer mortgages based on the highest income multiples (up to 6 times salary) to borrowers in specific, prestigious professions. These professions include:
- Medicine
- Law
- Emergency services
- Military
- Civil service
- Surveyors
- Architects
- Other key workers
Other factors
The overall strength of your application will also have an indirect effect on the income multiple you qualify for, as borrowers who are highly eligible for a mortgage generally have access to a wider range of deals, including ones that use higher salary multiples.
Your £80,000 salary is likely to stretch further if you have clean credit, will be under 75 by the end of the mortgage term, and there are no complexities with the property you’re buying. If you are self-employed, having at least 2 years’ accounts will increase your options.
Calculations all done? Here are your options now...
Example calculations
Given that your declarable income might be slightly more or less than £80k, depending on your outgoings and supplemental earnings, the table below shows example calculations for similar income amounts within this ballpark, based on various income multiples:
|
Salary Amount |
4 Times Salary |
4.5 Times Salary |
5 Times Salary |
5.5 Times Salary |
6 Times Salary |
|
£78k |
£312,000 |
£351,000 |
£390,000 |
£429,000 |
£468,000 |
|
£79k |
£316,000 |
£355,500 |
£395,000 |
£434,500 |
£474,000 |
|
£80k |
£320,000 |
£360,000 |
£400,000 |
£440,000 |
£480,000 |
|
£81k |
£324,000 |
£364,500 |
£405,000 |
£445,500 |
£486,000 |
|
£82k |
£328,000 |
£369,000 |
£410,000 |
£451,000 |
£492,000 |
|
£83k |
£332,000 |
£373,500 |
£415,000 |
£456,500 |
£498,000 |
How to get an £80,000 salary mortgage
Now that you have run some calculations and have a clearer understanding of how much you can borrow on an £80k salary, you can take the next steps on your mortgage journey with Teito. Here you can compare rates for free and get professional advice along the way.
Here are just some of the reasons why people choose us for their mortgage needs:
- You can compare rates from lenders across the market for free
- Our mortgage brokers 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 rates and speak to one of our whole-of-market mortgage brokers about your options? Get started here.
FAQs
If you and your partner have a combined salary of £80k, this won’t be treated any differently to a solo mortgage based on this amount. Lenders take combined household income into account and apply their salary multiple to that to arrive at maximum borrowing.
If either you or your partner earns £80k alone, this will be added to the other applicant’s earnings and the lender will apply their income multiple to the grand total.
Read more about how joint mortgages work through the link.
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.