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Having a household income of £90k per year puts you well above the UK average, but what size mortgage can you afford with this salary? Find out below…
What size mortgage can you get with a household income of £90k?
With an annual household income of £90,000, you could potentially secure a mortgage of up to £405,000. This is based on 4.5 times your combined salaries, the standard income multiple that most UK mortgage providers use to work out maximum borrowing.
A smaller number of mortgage lenders would consider letting you borrow more, as they use higher income multiples for their calculations, sometimes up to 5-6 times salary. This means that you could borrow between £450,000 and £540,000, under the right circumstances.
The exact amount you can borrow is based on a range of variables, as your lender will take several factors on board when deciding which income multiple you qualify for. Read on to find out more about how these things come into play in the affordability assessment.
Calculate your maximum borrowing
You can use our mortgage calculator below to work out how much you can potentially borrow with a salary of £90,000. The tool has been set to calculate this amount by default, but different incomes can be entered manually if you wish to make some comparisons.
Now that you have run a few calculations, you can compare mortgage rates for free or speak to a broker about your options on Teito - get started here.
Factors that determine your exact mortgage size
The amount you can borrow on a mortgage with a £90,000 salary could be higher or lower than the example calculations we have provided. We will now explore the factors that lenders will consider when working out the exact mortgage size you qualify for.
Total household income
This doesn’t just mean the annual salaries of everyone in the household (in this case £90k). Certain lenders will let you declare supplemental income on top of your salaries. Some accept only a capped percentage of these earnings, while others will let you declare 100%.
Supplemental income sources that may be considered include:
- Benefits
- Freelance work
- Bonuses and commission
- Regular overtime
- Investments
- Rental income
Outgoings
Fixed monthly outgoings will be offset against your total household income and can reduce the total amount you can borrow. Not all outgoings need to be declared for this purpose, but the following costs will be taken into consideration during the affordability assessment:
-
Council tax
-
Utility bills
-
Broadband
-
Loan or credit cards agreements
-
Car payments
Deposit amount
Putting down a larger mortgage deposit can help you borrow more as some lenders reserve their higher income multiples (5 times salary and up) for applicants with low loan-to-value (LTV) ratios. Higher salary multiple deals tend to kick in at around 60-80% LTV.
This means that if you are able to put down a deposit of 20-40% of the property’s value, you may be offered a £90k salary mortgage based on at least 5-5.5 times that income.
Profession
To get a £90,000 salary mortgage based on 6 times income, you would usually need to be working in a specific profession with prestige and strong prospects.
A few lenders offer 5.5-6 times salary mortgages to people in the following lines of work:
- Medicine
- Law
- Emergency services
- Military
- Civil service
- Surveyors
- Architects
- Other key workers
Other eligibility factors
The overall strength of your mortgage application will have an indirect influence on the amount you can borrow, as being highly eligible for a mortgage means more lenders and deals to choose from, including ones with the highest salary multiples.
Your chances of securing a £90k salary mortgage based on a higher multiple than the standard 4.5 times income will improve if the following criteria is met:
- You have clean credit
- You will be under age 75 during the mortgage term
- You have 2-3 years’ accounts (if you are self-employed)
- The property was built using standard construction techniques and materials
It is still possible to get approved for a mortgage if you don’t meet this criteria to a tee, but your chances of borrowing 5 times salary or more might not be as strong.
Example calculations
With supplemental income and outgoings factored in, your total amount of declarable income could be more or less than £90,000. With this in mind, the table below shows example mortgage affordability calculations for similar income amounts in this ballpark.
|
Income Amount |
4 Times Salary |
4.5 Times Salary |
5 Times Salary |
5.5 Times Salary |
6 Times Salary |
|
£87k |
£348,000 |
£391,500 |
£435,000 |
£478,500 |
£522,000 |
|
£88k |
£352,000 |
£396,000 |
£440,000 |
£484,000 |
£528,000 |
|
£89k |
£356,000 |
£400,500 |
£445,000 |
£489,500 |
£534,000 |
|
£90k |
£360,000 |
£405,000 |
£450,000 |
£495,000 |
£540,000 |
|
£91k |
£364,000 |
£409,500 |
£455,000 |
£500,500 |
£546,000 |
|
£92k |
£332,000 |
£414,000 |
£460,000 |
£506,000 |
£552,000 |
Calculations all done? Here are your options now...
Apply for a £90,000 salary mortgage today
Now that you have a better idea of the amount you can borrow with a salary of £90k, you can compare mortgage deals for free on Teito and access advice from one of our brokers.
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 take advantage of a free, no-obligation chat with a broker who specialises in £90,000 salary mortgages? Get started here.
FAQs
Yes. With this amount of income, you can potentially access more rates and deals than somebody with a lower salary. This is because some lenders reserve certain higher income multiples and other features for applicants with larger salaries, such as £90,000.
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.