This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.
If you're looking to buy a home and need a mortgage for £100,000, it can be complicated to work out what sort of salary you need to be eligible for this sort of lending.
Each lender has different criteria, and therefore it is essential to apply to the right place, rather than consult a mortgage provider whose criteria you don't meet. That can potentially rack up credit searches on your credit history that can make it even tougher to find approval elsewhere.
In this guide, we'll summarise how mortgage affordability works, and what sort of income you would need to demonstrate to qualify for a £100,000 mortgage.
For further information, or to start your mortgage search, give the Revolution Brokers team a call on 0330 304 3040, or email us at info@revolutionbrokers.co.uk.
Lenders need to be responsible for what they offer, so they need to know what you earn - and your partner if it is a joint application - to ensure you can afford the mortgage repayments.
This is called an affordability assessment and considers your outgoings as well as any other debts. Your debt to income ratio looks at how much you earn vs how much you owe.
Most lenders will offer an initial mortgage limit based on a multiple of your income, typically around three or four times, but sometimes as high as five or six times depending on the circumstances.
If we assume that a lender offers up to four times salary, you'd need to earn around £25,000 to qualify.
The below table shows a few income examples, and what the mortgage limit might be depending on what income multiple the lender can offer.
|
Salary |
Lender A - 3 x Income |
Lender B - 4 x Income |
Lender C - 5 x Income |
Lender D - 6 x Income |
|
£16,000 |
£48,000 |
£64,000 |
£80,000 |
£96,000 |
|
£17,000 |
£51,000 |
£68,000 |
£85,000 |
£102,000 |
|
£20,000 |
£60,000 |
£80,000 |
£100,000 |
£120,000 |
|
£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 |
Lenders don't just look at how much you earn, but multiple factors in deciding whether they can lend and, if so, how much they can offer and at what interest rate:
In any circumstances, a whole-of-market broker is by far the easiest way to find the most competitive deals on the market, and have professional advice about which lenders you should consider applying to.
The business loan broker team is wholly independent, and tracks down the best deals, while negotiating terms and rates on your behalf.
Get in touch via email at info@revolutionbrokers.co.uk or give us a ring on 0330 304 3040.
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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.
Revolution Brokers understands that mortgages can be complex and confusing!
Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.
