To Qualify for a £150,000 Mortgage, What Is the Minimum Annual Income Requirement?

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Are you wondering if you qualify for a £150,000 mortgage? Discover and learn everything you need to know about applying with our comprehensive guide.

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You've come to the right place if you're wondering how much you need to earn to get a £150,000 mortgage.

In this article, we'll go over how lenders determine the maximum amount you can borrow, what other factors determine whether you're eligible for that amount, and why working with a broker is the best way to maximize your borrowing capacity.

When calculating individual borrowing capacity, there are a few key variables to consider. However, most lenders use income multiples as a guide to determine the maximum amount a borrower (or borrowers) can get.

Most lenders will lend between four and five times the combined annual salary of all applicants. In some cases, more risk-averse lenders will limit income multiples to three times income. Others use higher income multiples, and it's not unusual to find specialist lenders who will approve mortgages at six times income.

Using the most widely used income multiples:

  • To qualify for a loan from a lender, you must earn £30,000 per year.
  • You would need to earn £33,333 per year with a lender using [[4]]5 times salary.
  • To qualify for a loan from a lender, you must earn £37,500 per year.

Calculations as an example

This table shows how your income and the income multiples of the provider combine to determine your maximum borrowing capacity:

Income Three Times Your Income 4 times earnings 5 times earnings 6 times earnings £25,000 £75,000 £100,000 £125,000 £150,000 £30,000 £90,000 £120,000 £150,000 £180,000 £35,000 £105,000 £140,000 £175,000 £210,000 £40,000 £120,000 £160,000 £200,000 £240,000 £45,000 £135,000 £180,000 £225,000 £270,000 £50,000 £150,000 £200,000 £250,000 £300,000 £55,000 £165,000 £220,000 £275,000 £330,000 £60,000 £180,000 £240,000 £300,000 £360,000

Did you know.... With a broker on your side, you could gain access to 30% more of the mortgage market.

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Simply enter your information into our mortgage affordability calculator below to see if your maximum borrowing allows you to qualify for a £150,000 mortgage.

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Our affordability calculator can tell you how much you might be able to borrow from a mortgage lender. Simply enter your total household income into the box below, and our calculator will do the rest.

Get started with an expert broker to determine how much you can borrow.

If you have consistent earnings and are familiar with a lender's income multiple, calculating your maximum borrowing capacity is simple. Some lenders, however, are hesitant to lend to people with complicated income streams, such as self-employed individuals with sporadic income.

A mortgage broker will evaluate your total income and locate a lender who is sympathetic to your financial situation.

This may be a lender who:

In addition to income multiples, lenders consider a number of other factors when evaluating your application. These can influence whether your application is approved as well as the rate you are offered (and thus the cost of your mortgage).

These are some examples:

The table above is only for comparison purposes. For the most up-to-date information for your specific situation, speak with your lender or broker.

How much money do I need to put down?

The amount of deposit required is determined by the loan to value (LTV) ratio. It is simply how much a lender is willing to offer in relation to the value of the property you are purchasing.

A mortgage application with a low deposit will be viewed as riskier, resulting in fewer lenders taking it seriously and those who do may charge higher interest rates to mitigate this risk.

Most lenders will accept deposits of 20%, 10%, or 5%, with a few exceptions accepting as little as 5%.

For example, if a property is worth £200,000 and you have a deposit of £10,000, your LTV is 95%, which is currently the maximum LTV that most lenders will accept for residential properties.

So, what exactly is Loan to Value (LTV)?

As previously stated, most lenders have a maximum Loan to Value (LTV) that limits how much they are willing to lend to you. It is the difference between the property value and the mortgage amount.

The amount is determined by a variety of factors such as income, credit history, deposit size, and so on.

Based on a £150,000 mortgage, this chart will show you the value of a property you could buy if you increase your deposit, lowering your Loan to Value.

Deposit amount:

Duration of the term:

Revenue and expenses:

Income source:

A larger deposit gives lenders more security and can result in lower rates or higher income multiples. It will also assist you in meeting loan-to-value (LTV) ratio requirements with as many lenders as possible. Lenders must determine whether you can afford to borrow £150,000 based on your earnings and existing financial obligations.

If your monthly payments are too high for a typical 25-year mortgage, borrowing over a longer term can help you secure a loan of £150,000.

Lenders must determine whether you can afford to borrow £150,000 based on your earnings and existing financial obligations.

Some mortgage lenders prefer full-time employment with a regular salary, but almost any type of income, including pensions and benefits, can be used if you know the right lender.

File credit:

Type of mortgage:

Borrowing goal:


Bad credit can result in higher interest rates and a reduction in the number of mainstream lenders willing to consider your application. However, there are many lenders who specialize in mortgages for people who have (or have had) credit problems.

Interest-only mortgages have lower monthly payments than standard repayment terms, but they will necessitate the use of a separate repayment vehicle to cover the amount borrowed. These are most commonly used for buy-to-let mortgages. Your monthly payments will also be affected by whether you choose a fixed or variable rate agreement.

Buy-to-let mortgages typically have higher interest rates and a larger down payment.

You can borrow at almost any age, but age limits may affect the length of your term and the amount you can borrow.

Finding the right mortgage can be difficult with so many different lenders and products, as well as so many different variables. Just because one lender declines your application for a £150,000 mortgage does not mean you cannot obtain one.

Going it alone and receiving multiple rejections, on the other hand, will exacerbate your problem because each new credit search will reduce your chances of acceptance.

Our one-of-a-kind broker matching service will assess your situation and connect you with a broker who specializes in helping people in your situation borrow the money they need at the best possible rate.

To be matched with your ideal broker, call 0808 189 2301 or enquire online today to schedule a free, no-obligation consultation.

*According to our research, the information in this article is correct as of the most recent time of writing. Lender criteria and policies change on a regular basis, so speak with one of our advisors to confirm the most up-to-date information. The information on this website is not tailored to each individual reader and thus does not constitute financial advice. All of our advisors are fully qualified to give mortgage advice and only work for firms that are authorised and regulated by the Financial Conduct Authority. They will provide any advice that is specific to you and your needs.

The FCA does not regulate certain types of buy-to-let mortgages. Consider your options carefully before securing additional debts against your home. Because a mortgage is secured against your home, it may be repossessed if you fail to make mortgage payments on time. Your home's equity will also be secured against it.

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