How Much Mortgage Can I Get on a £40,000 Salary (UK)?
A £40,000 salary can stretch further when you balance income multiples with a realistic monthly budget. Use these pointers and the HouseBudget Calculator to estimate borrowing that feels comfortable, not just possible.
Typical lending multiples
- Many lenders offer around 4–4.5x income for straightforward cases, but this can flex with debts and credit history.
- Joint applications may reach a bit higher, while significant debts can pull the multiple down.
- Bonuses and overtime are often included at a reduced percentage unless they are guaranteed.
Turn your income into a monthly budget
- Enter your take-home pay, debts, target term and rate into the calculator.
- Choose a housing percentage that leaves room for bills and saving – many people start near 30%.
- Review the suggested monthly payment and the mortgage size it supports.
- Compare that figure with a 4–4.5x income multiple to check both views line up.
Factor in deposit and fees
- Deposit: A 10% deposit on a £200,000 property is £20,000; a bigger deposit can unlock better rates.
- Fees: Budget for survey, legal costs and potential product fees on top of the deposit.
- Stress rate: Use the calculator’s stress rate to see if you could still afford payments after fixes end.
Example outcomes to explore
If the calculator shows you can afford £900 per month, at a 5% rate over 30 years that supports roughly a £167k mortgage. Adding a 10% deposit gives a property budget near £185k. Adjust the rate, term or deposit in the HouseBudget Calculator to see how your target price shifts.