Getting a Mortgage of 4 to 4.5 Times Your Salary
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Mortgage Affordability Calculator
Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.
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Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
03.10.2024
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
03.10.2024
Purchasing a home is a significant financial commitment, and understanding how much you can borrow is crucial. One common benchmark is obtaining a mortgage 4.5 times salary. This guide will explain everything you need to know about securing a 4.5 times salary mortgage in the UK.
What does it mean to get a mortgage 4 or 4.5 times your salary?
A mortgage of 4.5 times salary means that lenders are willing to loan you up to 4.5 times your annual income. For instance, if your yearly salary is £40,000, you might be eligible for a mortgage of up to £180,000. This multiple helps determine your borrowing power and affordability.
Mortgage multiples:
4.5 times salary mortgage: Up to 4.5 times your annual income.
4 times salary mortgage: Up to 4 times your annual income.
Lenders use these multiples to balance what they can offer you and what you can realistically afford to repay, considering your overall financial health.
Based on a mortgage of £300,000 at 75% LTV and 25 years Today’s best buy mortgages
Latest mortgage best buys
See all mortgage best buysSpeak with Us Interest Rate Mortgage Type Monthly Repayment Amount Total Fees Max LTV 
3.79% Fixed £1,174 £30 75% 4.09% Fixed £1,198 £0 75% 4.12% Fixed £1,210 £1,499 75% 4.24% Fixed £1,224 £1,025 75%
How much can I borrow with a 4x, 4.5x, 5x salary mortgage?
The table below illustrates potential borrowing amounts:
Yearly Salary | 4 Times Salary | 4.5 Times Salary | 5 Times Salary |
£20,000 | £80,000 | £90,000 | £100,000 |
£30,000 | £120,000 | £135,000 | £150,000 |
£40,000 | £160,000 | £180,000 | £200,000 |
£50,000 | £200,000 | £225,000 | £250,000 |
£60,000 | £240,000 | £270,000 | £300,000 |
£70,000 | £280,000 | £315,000 | £350,000 |
£80,000 | £320,000 | £360,000 | £400,000 |
£90,000 | £360,000 | £405,000 | £450,000 |
£100,000 | £400,000 | £450,000 | £500,000 |
This table helps to understand the range of mortgage amounts you could potentially borrow based on your annual income and the income multiple applied by different lenders.
How much deposit do I need for a 4.5 times income mortgage?
The required deposit typically ranges from 5% to 20% of the property’s value.
Here’s a quick reference:
Property Value (£) | 5% Deposit (£) | 10% Deposit (£) | 20% Deposit (£) |
50,000 | 2,500 | 5,000 | 10,000 |
60,000 | 3,000 | 6,000 | 12,000 |
70,000 | 3,500 | 7,000 | 14,000 |
80,000 | 4,000 | 8,000 | 16,000 |
90,000 | 4,500 | 9,000 | 18,000 |
100,000 | 5,000 | 10,000 | 20,000 |
A higher deposit may increase your chances of securing a mortgage 4.5 times salary UK and potentially reduce the interest rates you’ll be offered.
Mortgage Affordability Calculator
Use our Mortgage Affordability Calculator to determine how much you can borrow.
Example:
- Annual Income: £50,000
- Monthly Outgoings: £1,500
- Possible Mortgage: £225,000 (using a 4.5 times salary multiple)
Mortgage Affordability Calculator
Use this calculator to determine how much you could potentially borrow for a mortgage, based on the typical salary multiples used by most UK lenders.
Is a mortgage always based on this multiple?
While the mortgage 4 times salary and 4.5 times salary mortgage are common, not all mortgages are based on these exact multiples. Lenders may adjust the multiple based on several factors:
- Credit score: A higher credit score can lead to a higher multiple.
- Income stability: Stable and consistent income increases lender confidence.
- Existing debts: Lower debts can enhance borrowing limits.
Speak to an expert about mortgage affordability
Navigating the mortgage landscape can be complex. Speaking to a mortgage broker can help you understand:
- Personal affordability: Tailored advice based on your financial situation.
- Best rates: Access to competitive interest rates.
- Loan options: Various mortgage products available.
Can I get a 4.5x salary mortgage with bad credit?
Obtaining a 4.5 times salary mortgage with bad credit can be challenging but not impossible. Here are some strategies:
- Improve your credit score: Address issues on your credit report.
- Higher deposit: A larger deposit can mitigate lender risk.
- Specialist lenders: Some lenders specialise in bad credit mortgages.
Can self-employed borrowers use a 4.5x income multiple?
Yes, self-employed individuals can qualify for a 4.5 times income mortgage. However, they often face stricter criteria, such as:
- Income proof: Usually required to provide 2-3 years of accounts.
- Income consistency: Demonstrating stable or increasing income over the years.
Today’s best buy mortgages
Latest mortgage best buys
Based on a mortgage of £300,000 at 75% LTV and 25 years
| Speak with Us | Interest Rate | Mortgage Type | Monthly Repayment Amount | Total Fees | Max LTV |
|---|---|---|---|---|---|
| 3.79% | Fixed | £1,174 | £30 | 75% |
| 4.09% | Fixed | £1,198 | £0 | 75% |
| 4.12% | Fixed | £1,210 | £1,499 | 75% |
| 4.24% | Fixed | £1,224 | £1,025 | 75% |
Other factors affecting borrowing limits
Several factors can influence your borrowing limits beyond your salary:
- Debt-to-income ratio: Lower existing debts improve borrowing power.
- Loan term: Longer terms can reduce monthly repayments, influencing affordability.
- Interest rates: Lower rates can increase how much you can borrow.
Which lenders offer 4-4.5 salary multiples
Many UK lenders offer 4-4.5 times salary mortgages. Some prominent ones include:
- HSBC
- Barclays
- NatWest
- Santander
Each lender has specific criteria and may offer different terms based on your financial profile.
Can you borrow more than 4.5 x salary?
In some cases, borrowing more than 4.5 times your salary is possible, particularly for high-income earners or those with exceptional financial profiles. However, it often involves:
- Stricter lending criteria: Tighter scrutiny on financial stability.
- Higher interest rates: Increased borrowing risk for lenders.
Get matched with a broker experienced in higher multiple mortgages
Finding the right mortgage broker can make a significant difference. A broker experienced in higher multiple mortgages can:
- Identify suitable lenders: Match you with lenders offering high multiples.
- Negotiate terms: Help secure favourable loan terms.
- Provide tailored advice: Offer guidance based on your unique situation.
Conclusion
Securing a mortgage 4.5 times salary UK is a viable option for many homebuyers. By understanding the criteria, speaking to experts, and exploring various lenders, you can find the best mortgage to suit your needs. Start by calculating your affordability and consult a broker to navigate the process smoothly.
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FAQ
01/ What does a mortgage of 4 or 4.5 times my salary mean?
A mortgage 4.5 times salary means that lenders are willing to loan you up to 4.5 times your annual income. For example, if your annual salary is £40,000, you may be eligible for a mortgage of up to £180,000. This multiple helps determine your borrowing power based on your income.
02/ How much deposit do I need for a 4.5 times income mortgage?
The deposit required usually ranges from 5% to 20% of the property’s value. For a property valued at £100,000, this would mean a deposit of between £5,000 (5%) and £20,000 (20%).
03/ Is a mortgage always based on this multiple?
No, not all mortgages are based on the 4 or 4.5 times salary multiple. Lenders may adjust the multiple based on factors such as your credit score, income stability, and existing debts.
04/ Can I get a 4.5x salary mortgage with bad credit?
Obtaining a 4.5 times salary mortgage with bad credit is more challenging, but possible. Strategies include improving your credit score, providing a higher deposit, and seeking specialist lenders who cater to bad credit borrowers.
05/ Can self-employed borrowers use a 4.5x income multiple?
Yes, self-employed individuals can qualify for a 4.5 times income mortgage, although they might face stricter criteria such as providing 2-3 years of accounts and demonstrating consistent or increasing income.
06/ What factors affect borrowing limits?
Several factors influence borrowing limits, including your debt-to-income ratio, loan term, interest rates, and overall financial health.
07/ Which lenders offer 4-4.5 salary multiples?
Many UK lenders offer 4-4.5 times salary mortgages, including HSBC, Barclays, NatWest, and Santander. Each lender has specific criteria and terms based on your financial profile.
08/ Can I borrow more than 4.5 times my salary?
In some cases, borrowing more than 4.5 times your salary is possible, particularly for high-income earners or those with exceptional financial profiles. However, this often involves stricter lending criteria and potentially higher interest rates.
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