Head of Content
Mortgage Advisor & Director
Mortgage affordability in the UK is tied to income multiples, but are mortgages based on four times your annual salary available? Read on to find out.
Is a mortgage four times your salary?
A mortgage can be four times your annual salary if that’s the amount you need to borrow, but the vast majority of UK mortgage lenders can offer larger mortgages than this.
Most mortgage providers cap their maximum lending at 4.5 times salary and a few go even higher than this, up to 5-6 times income, so if you need to borrow just four times your total household earnings, you are unlikely to face any specific caveats or requirements.
How do four times income mortgages work?
The mortgage lender will combine the annual salaries of all applicants who will be named on the mortgage and multiply the total by four to arrive at your maximum mortgage borrowing.
This will only be a ballpark figure for the amount you can borrow, as the lender will also factor in your outgoings, and some will include supplemental income in their calculations too.
Outgoings that you need to declare include council tax, utility bills, broadband, loan or credit cards agreements, car payments, and childcare costs, while supplemental income you could add to the mix includes benefits, commission, investment income and rental income.
Example calculation: If you and your partner have a combined income of £75k, one earns commission of £2k per year and a car loan for £400 per month, you would qualify for a mortgage of £286,400 from a lender who uses the four times income multiple.
Calculate your maximum borrowing
You can use our calculator below to work out how much you can borrow based on 4 times salary. It will also return results based on higher income multiples for comparison purposes.
Now that you have run some calculations, you can take the next steps on your mortgage journey with Teito. Our service allows you to compare mortgage rates from across the market for free and access support from an expert broker - get started here.
Example calculations
The table below shows the maximum amount you can borrow based on 4 times salary for specific income amounts. These are ballpark figures without outgoings factored in.
|
Salary Amount |
Max Mortgage Based On x4 Income |
|
£20,000 |
£80,000 |
|
£100,000 |
|
|
£120,000 |
|
|
£35,000 |
£140,000 |
|
£160,000 |
|
|
£45,000 |
£180,000 |
|
£200,000 |
|
|
£240,000 |
|
|
£65,000 |
£260,000 |
|
£70,000 |
£280,000 |
|
£75,000 |
£300,000 |
Which lenders offer 4 times salary mortgages?
Almost every single mortgage lender in the UK will offer a mortgage of four times annual salary to eligible borrowers. Only one lender has a lower maximum than this, and the vast majority will lend up to 4.5 salary to most mortgage applicants without any caveats.
Lenders who won’t offer mortgages any higher than 4 times income are as follows:
- Earl Shilton Building Society
- Mansfield Building Society
- Swansea Building Society (3.5 times income as standard)
If four times your household earnings is the amount you need to borrow, you should have plenty of lenders to choose from, but speaking to a qualified mortgage broker is still advised as they can help you whittle down your search and find the most suitable deal for you.
Ready to find your ideal mortgage lender?
Why choose Teito for your mortgage needs?
Now that you have run those calculations and have a clearer idea of how much you can borrow based on 4 times your income, your next step should be to compare mortgage rates and deals and seek advice from a broker, two things you can do for FREE on Teito.
Here are just some of the reasons people source their mortgage through us:
- Access the latest rates and deals in seconds
- Our mortgage brokers 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 source your mortgage and take advantage of a free, no-obligation chat with one of our mortgage brokers? Get started here.
FAQs
Yes. If a smaller mortgage is what you need, any lender in the UK would consider offering you one based on three times your annual income. There are no specific caveats for a mortgage based on this multiple, as most lenders offer loans of up to 4.5 times income.
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.