What salary do I need to buy a house in the UK?

If you want to buy your first home, saving a deposit is only half the battle. You could spend years scrimping and saving your way to a 10% or even 20% deposit, only for your salary to get between you and your dreams of homeownership. So what salary do you need to buy a house in the UK? And what can you do to increase your chances of getting a mortgage? Find out in this guide.

What salary do I need to buy a house in the UK?

Some have estimated that the average first-time buyer needs an income of £60,600 to buy a home, but don’t panic if you earn less than this. Whether you can buy a home with your current salary depends on where you’re living, the cost of the property you want to buy, the size of the deposit you have saved up and if you use any budget-boosting scheme. In different areas, house prices can range significantly, as well as the property price -  if you’re buying a 4-bed detached house this will likely be more expensive than a 1-bed flat. A higher property price means you’ll need to borrow more from the lender for a mortgage. Most lenders are willing to offer mortgages of 4 to 4.5x your household income, although you may be able to borrow more or less than this depending on your affordability. 

So if you want to buy a 4-bed house, your household salary will need to be enough to get a loan big enough to cover the rest of the property price after your deposit. This is why having a bigger deposit can reduce the salary you need for a mortgage - with a larger deposit, you’ll need to borrow less to purchase the same property.

However, keep in mind that you may be offered less than the standard 4-4.5x your income for a mortgage if your affordability is lower. For example, having a low credit score or high expenses due to dependents like children, existing credit commitments, such as credit card debts and unsecured loans or lots of outgoings, could reduce the size of a mortgage you can get. Lenders will also want to make sure that the mortgage you take out is affordable even if your interest rate was to increase, so they will take this into consideration when calculating your max borrowing.

The good news is that some borrowers they can borrow up to 5 or 6 times their income. And don’t forget that if you’re buying a home with your partner or a friend, both your incomes will be taken into consideration and so you’ll have even more buying power. There are also dozens of first-time buyer schemes and savvy savings accounts available to help you buy a house on a modest income and even save a deposit sooner.

Learn more: Buying a house on a single income

How can you borrow 5x your salary for a house?

If you’re a first-time buyer, you may be eligible for a 5x Income Mortgage. You only need a 5% deposit, but you’ll need an excellent credit score and a salary of at least £37,000 a year if you’re buying alone or a joint income of at least £55,000 a year if you’re buying with a partner or friend. You could also borrow 5-6x your income if you have a large deposit saved and a good credit score, or you’re eligible for a loan through a Professional or Key Worker mortgage. These mortgages are for those who work in a “professional” field (think solicitor, accountant, architect), or doctors, nurses and those in similar key worker roles. 

Unfortunately, you won’t be eligible for a 5x Income Mortgage if you’re self-employed. Take a look at our self-employed mortgage guide to see the other ways you could get on the ladder.

You might like: Can I get a mortgage 5 or 6 times my salary?

Other ways to buy a home on a low salary

Income Boost

You could get a bigger mortgage with the help of an Income Boost mortgage. This is a type of guarantor mortgage, where you could boost your borrowing potential by adding a relative’s income to your mortgage application as well as your own. Although they’ll be named on the mortgage, they won’t be named on the property itself, so your home will be all yours. But if you miss any mortgage payments, your guarantor will need to step in and make the payments for you.

Deposit Boost

You can reduce the mortgage size you need by putting down a larger deposit. While this may sound easier said than done, one way you could do this is through a Deposit Boost. If you have loved ones who own a home, like your parents for example, they could use a small mortgage to unlock money from their home to give to you to increase your deposit. This is a way for home-owning loved ones to help you on the property ladder without having to have millions saved up in the bank. 

Shared Ownership

Another option is Shared Ownership. It comes in many shapes and sizes but typically involves buying a portion of a property and paying rent on the rest. Because you're only purchasing a share of the home, you'll need a much smaller deposit and mortgage than you would if buying a home the traditional way. Over time, you can staircase your way up to full ownership by increasing your equity stake in the property.