With average house prices in the UK around the £230,000 mark, and much higher in the south-east, it’s not surprising that so many of our customers have questions about mortgage affordability.
Jump to our calculator journey to establish what you can borrow, the costs and which of the best deals you’ll qualify for.
Most of the time prospective buyers will have a key figure they have calculated in their head – whether that be because of they’ve spotted the property they want to purchase or they just have an idea of the house prices in the area – and if a £300,000 mortgage is what you’ve set your sights on, this article is for you.
Our guide to £300,000 mortgages covers the following topics…
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How much do I need to earn for a 300k mortgage?
The salary needed for a £300,000 mortgage will differ from lender to lender because what is accepted as declarable income differs. For example, there are some lenders who are happy to accept bonuses and projections (for self-employed borrowers) while others will only take into account guaranteed income.
Keep in mind that your outgoings will also be assessed, so having significant debts, dependents and other expenses might also impact the amount you can borrow.
Typically, lenders will calculate how much you can borrow by multiplying your income by four and a half or five times (although some will multiply by six and, for second charge mortgage loans it’s not unheard of to get 10 times your income).
The table below will help you calculate how much you could borrow, depending on what income multiple your lender uses in their affordability assessment.
Remember, if you have a partner, you could apply for a mortgage based on combined income.
|Income||4.5x Income||5x Income||6x Income|
Alternatively, you can use our online mortgage calculator tools to get a rough ideal of your borrowing potential. Or better yet, make an enquiry today and we’ll refer you to one of the experts for the right guidance regarding the amount you need to earn for a £300k mortgage.
What deposit do I need for a £300k mortgage?
One of the most important factors when determining how much you’re able to borrow and what your mortgage will end up costing is the size of your deposit.
The higher the deposit you have, the better your chances of getting a £300,000 mortgage and accessing the ‘cheapest’ or most competitive mortgage rates available on the market.
That being said, the number of higher loan to value (LTV) mortgages has increased considerably over the last few years with some lenders have started to provide mortgage products with 90% LTVs and a small number willing go up to 95% (depending on eligibility assessments, valuation reports and other factors).
Can I get a mortgage with credit issues?
The income needed for a £300k mortgage and the deposit you have is just a couple of the factors that will be taken into account when applying for a mortgage. Your credit history will also be considered.
The type of credit issues lenders are willing to accept will differ from one provider to another, based on the exact criteria they require you to meet.
For more information on this see our bad credit information section, or make an enquiry and we’ll refer you to one of the experts who’ll be able to talk you through the mortgages available for borrowers with bad credit.
Can I get a £300K mortgage into retirement?
Having the income for a £300k mortgage may not make any difference if your age falls outside of lenders’ criteria. Some lenders have a cap on the maximum age a borrower can be upon mortgage application or at the end of mortgage terms. The reason for this is lenders are concerned that, once retired, you won’t be able to meet the monthly mortgage payments.
However, in recent years, as the way in which we work and earn has changed, many lenders have scrapped their maximum age requirements and will grant a mortgage to any retired borrower who is eligible and capable of keeping up with the monthly payments.
How much do I need to earn to get a mortgage of £300,000 on a buy to let?
Some buy to let mortgage lenders will expect you to earn a minimum of £25,000 per year in order to apply for a buy to let mortgage. However, when calculating how much they’d be willing to lend you, most will use the amount of rental income you’re likely to achieve as a guide. The majority of lenders will expect you to be able to charge 25-45% more rent than your mortgage repayment on the amount you have borrowed.
Find out if you have the income needed for a £300,000 mortgage today
How much do you need to earn to get a £300k mortgage? If you still don’t know the answer to that question, get in touch and the expert brokers we work with will calculate this for you and introduce you to the right mortgage provider.
At Online Mortgage Advisor, we offer a 5-star service with access to expert brokers who are whole of market, already know the lenders most likely to offer you the best deals and they are accredited by us.
If you have questions and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry online.
Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.
Updated: 24th August 2020
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