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How can I get a mortgage for £100k?


This information provides you all the data you must know together with how a lot deposit you’ll want, the minimal revenue required by lenders and the method of making use of for a mortgage for 100k.

How a lot revenue do I must get a mortgage for £100,000?

In the event you’re making use of for a sole mortgage and you must borrow £100,000, your lender might want to see proof of your affordability to find out whether or not they can take the danger of lending to you. 

Each lender has their very own guidelines in the case of deciding what makes borrower and subsequently who they’ll lend to and underneath what situations. 

Most debtors will take a look at quite a lot of elements together with your:

  • Age – older debtors may be seen as bigger danger and could also be given shorter mortgage phrases

  • How lengthy you’ve been in your job for

  • The kind of employment you may have i.e. whether or not you’re in a safe contract or are not too long ago self-employed or on furlough

  • The hours you’re employed i.e. half time or full time

  • Your credit score historical past

  • Your debt to revenue ratio

  • The price of your outgoings together with family payments, residing bills and variety of monetary dependants 

How a lot do I must earn a 12 months to get a £100,000 mortgage alone?

Your annual revenue will likely be an enormous issue in the case of getting authorised for a mortgage and most lenders calculate how a lot they’ll lend you utilizing revenue multiples of 4.5 x your annual revenue. 

The common wage within the UK in 2020 was £29,600 per 12 months, so based mostly on this, a typical lender may conform to lend you £133,200, relying on their standards and subsequently their urge for food to lend to somebody together with your circumstances. 

One thing to pay attention to is that some lenders could conform to loan bigger revenue multiples in the event that they really feel the loan is inexpensive for you, although a big revenue and a low debt to revenue ratio would seemingly be required for this. 

Moreover, it might even be the case that your chosen lender agrees to approve your mortgage underneath the settlement that they use decrease revenue multiples to calculate your loan quantity. 

This might be as a result of they’ve tightened their lending standards in gentle of the economical results of Coronavirus, or it might be as a result of you may have below-average credit or low affordability. 

Some lenders can even have minimal annual revenue necessities too, nevertheless, if a lender did conform to lend you 4 x your annual revenue and also you earned £25,000 a 12 months, it might be doable to get a mortgage for £100,000. 

Can I get a joint mortgage for £100,000?

In the event you’re getting a joint mortgage, both with a member of the family, associate or buddy, it is not uncommon, and subsequently doable, to make use of each of your incomes on the mortgage utility. This might mean you can meet affordability standards for decrease curiosity loans, borrow extra and doubtlessly entry loans with a higher-loan-to-value. 

How a lot deposit do I want for a £100,000 mortgage within the UK?

Lenders all range however most are at present asking for 15% to twenty% of the market worth of a property. 

For a house value £115,000, a 15% deposit could be £17,250, which might imply that you might get a mortgage for £100,000 and have £2,250 left over for adorning the property. 

Nevertheless, in some circumstances with low affordability or below-average credit, it might be the case {that a} lender solely agrees to a decrease LTV price and subsequently asks you for a better deposit. 

If for instance, a lender wished a deposit of 25% of the property worth and also you wished to purchase that very same home valued at £115,000, you would want £28.750.

A advantage of that is that you’d be borrowing much less as with the bigger deposit, you’d solely want finance for £86,250.

How does the quantity of debt I’ve have an effect on my utility?

Debt to revenue ratio is calculated by including up your month-to-month debt repayments after which dividing them by your month-to-month revenue. A excessive DTI ratio signifies low affordability so it may be tougher discovering a lender prepared to approve a mortgage with probably the most fascinating phrases. 

The excellent news is that there are specialist lenders who’re extra aware of lending to candidates with debt and they are often extra open to approving an utility if their different standards is met. 

Working with a mortgage dealer might help to seek out these lenders rapidly, with out the trouble of looking a number of comparability websites. 

Can a dealer assist me get authorised for a £100k mortgage?

A mortgage professional can even negotiate the phrases of your mortgage and use their expertise to stop you from making errors in your utility that would hinder your funds later down the road. 

Checking the phrases and situations of contracts is simply one of many many duties that our brokers handle as they’ll additionally examine a whole bunch of UK lenders, highlighting those which have probably the most beneficial charges and usually tend to approve you.  

Contact a mortgage dealer a few £100k mortgage

Our crew is available to reply your questions on how you can get a mortgage for £100,000 or every other quantity that you just’re inquisitive about. You’re welcome to make use of our mortgage calculator for a fast quote however speaking to our crew is one of the simplest ways to get a quote that the majority precisely displays your circumstances. Name 02380 980304 or use our contact type to tell us about your plans to purchase a property. 

Read about:   The perfect mortgage lenders of March 2021
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