To borrow £400,000, you would typically need a household income of around £88,889 if a lender offered 4.5 times your income. At 4 times income, you would need £100,000, while a lender willing to consider 5 times income could potentially lend £400,000 on an income of £80,000.
However, income multiples are only a starting point. Your deposit, existing financial commitments, credit profile, mortgage term and the way you earn your income can all affect how much a lender is prepared to offer.
This can be particularly important for joint applications where the two borrowers earn their income differently. For example, one applicant may receive a conventional employed salary while the other works as a contractor, and lenders can take very different approaches to assessing the two incomes.
What this guide will show you
- Salary needed for a £400k mortgage at different income multiples
- Whether £400k could be achievable on incomes from £70k to £100k
- How joint incomes can be used for a £400k mortgage
- How lenders assess employed and contractor income
- What different deposits mean when borrowing £400,000
- A real £402k mortgage case handled by Oportfolio
- How much a £400k repayment mortgage could cost each month
What Salary Do I Need for a £400k Mortgage?
Income multiples of around 4–4.5 times income are a useful starting point when estimating how much you might be able to borrow, although some lenders can consider higher multiples for eligible borrowers.
| Income multiple (rule-of-thumb) | Approx salary needed (single or joint household income) | ||||
|---|---|---|---|---|---|
| 4.0x | £100,000 | ||||
| 4.5x | £88,900 | ||||
| 5.0x | £80,000 | ||||
| 5.5x | £72,700 | ||||
| 6.0x | £66,670 |
These figures are illustrative. A lender offering a particular income multiple does not guarantee that £400,000 will be available, as borrowing will depend on its full affordability assessment and lending criteria.
Can you afford a £400k mortgage?
Mortgage affordability isn’t determined by salary alone. Your deposit, existing financial commitments, credit profile, mortgage term and income structure can all affect how much you can borrow.
You can use our mortgage affordability calculator for an initial indication, or speak to one of our advisers if you want us to assess your circumstances against relevant lender criteria.
Why the income multiple is only a starting point
Income multiples are useful for estimating potential borrowing, but they don’t determine how much a lender will ultimately be prepared to offer.
Higher income multiples may be available to some borrowers, but eligibility can depend on factors such as income, profession, deposit, loan-to-value and the lender’s individual criteria.
The lender will also carry out an affordability assessment taking your expenditure and existing financial commitments into account. This is why two applicants earning the same salary can potentially receive different maximum borrowing figures.
What does a £400k mortgage actually mean?
A £400k mortgage refers to the amount you borrow, rather than the price of the property you’re buying.
For example:
- £421,053 property + approximately £21,053 deposit = £400,000 mortgage (95% LTV)
- £444,444 property + approximately £44,444 deposit = £400,000 mortgage (90% LTV)
- £500,000 property + £100,000 deposit = £400,000 mortgage (80% LTV)
The resulting loan-to-value (LTV) can affect the mortgage products and interest rates available to you. Generally, increasing your deposit reduces the LTV, although lenders will still need to establish that the £400,000 mortgage itself is affordable.
How much deposit do I need if I want a £400k mortgage?
The deposit you need depends on the price of the property and the loan-to-value available to you. Because £400,000 refers to the mortgage amount rather than the property value, a 5% deposit does not simply mean £20,000.
A lower deposit generally means borrowing at a higher LTV, while putting down more of your own money reduces the proportion of the property’s value you need to borrow.
A larger deposit can potentially provide access to a wider range of mortgage products and rates. However, the lender will still need to establish that the £400,000 mortgage itself is affordable based on your income and financial circumstances.
How lenders assess affordability for a £400k mortgage
Lenders don’t assess a £400,000 application using income multiples alone. Depending on your circumstances, they can consider:
- Basic salary and other eligible income
- Bonus, commission or overtime
- Contractor or self-employed income
- Existing loans, credit cards and car finance
- Dependants and childcare costs
- Other regular financial commitments
- Mortgage term and applicant age
- Other properties or mortgages
- Deposit and loan-to-value
- Credit profile
For joint applications, the lender can usually consider both applicants’ eligible incomes, but it will also take account of both applicants’ financial commitments and the wider household circumstances.
This means two households with the same headline income can potentially receive different borrowing figures.
Can I get a £400k mortgage on my salary?
Comparing £400,000 with your household income gives you an indication of the income multiple that would be required. The amount actually available will still depend on the lender’s full affordability assessment.
Can I get a £400k mortgage on £70k?
A £400,000 mortgage on a £70,000 household income would require borrowing of approximately 5.71 times income.
This is a relatively high income multiple. Some lenders can consider higher multiples for eligible applicants, but your existing commitments, mortgage term, deposit, credit profile and overall affordability would all need to support this level of borrowing.
Can I get a £400k mortgage on £80k?
A £400,000 mortgage represents exactly 5 times an £80,000 household income.
Some lenders can consider borrowing at this level where their eligibility and affordability requirements are met. Existing debts, dependants, mortgage term, deposit and the way your income is earned can all influence the amount actually available.
Can I get a £400k mortgage on £90k?
On a £90,000 household income, a £400,000 mortgage represents approximately 4.44 times income.
This sits within the broad income-multiple range considered by many lenders, although the application will still need to pass the lender’s full affordability assessment.
Can I get a £400k mortgage on £100k?
A £400,000 mortgage represents exactly 4 times a £100,000 household income.
This provides a stronger starting point from an income-multiple perspective, but lenders will still consider your financial commitments, deposit, mortgage term, credit profile and wider circumstances before determining the amount available.
Can two people combine their salaries for a £400k mortgage?
Yes. If you’re applying jointly, lenders can usually consider both applicants’ eligible incomes when assessing affordability.
For example, two applicants earning £45,000 each would have a combined household income of £90,000. A £400,000 mortgage would therefore represent approximately 4.44 times their combined income.
Alternatively, applicants earning £50,000 and £30,000 would have a combined household income of £80,000, making a £400,000 mortgage exactly 5 times household income.
However, lenders won’t look at the combined income figure in isolation. Both applicants’ existing debts, financial commitments and circumstances will also form part of the affordability assessment.
The way each applicant earns their income can matter too, particularly where one person receives a conventional employed salary and the other works as a contractor.
Can contractor income be used for a £400k mortgage?
Yes. Contractor income can be considered when applying for a mortgage, but lenders can differ in how they assess it.
Depending on the applicant’s circumstances and the lender’s criteria, affordability may be calculated using different measures of the contractor’s earnings. The lender may also consider factors such as the current contract, contracting history and the evidence available to support the income.
This means the same contractor could receive different borrowing figures from different lenders even though their underlying earnings haven’t changed.
This can become particularly important on a joint application where one borrower is conventionally employed and the other works on a contract basis. Finding a lender whose criteria suit both income structures can therefore be important when trying to borrow £400,000.
A real £400k mortgage case handled by Oportfolio
Property value: £487,000
Deposit: £85,000
Mortgage required: £402,000
Household income: £100,000
Application: Joint
Buyer type: First-time buyers
Income type: Employed and contractor
The challenge
The clients were first-time buyers purchasing a £487,000 property and needed a mortgage of £402,000.
One applicant received a guaranteed basic salary, while the second worked as a contractor on a day rate.
The challenge was that lenders can take different approaches to assessing contractor income. Depending on the calculation used, this can result in different income figures being available for affordability and therefore different maximum borrowing amounts.
How Oportfolio helped
We assessed the clients’ circumstances against lenders with different approaches to contractor income and identified one whose criteria were better suited to the application.
The lender was able to assess the contractor using the gross value of their contract. In this particular case, this resulted in a more favourable affordability calculation than the alternative approach to their day-rate income.
Combined with the first applicant’s employed salary, this enabled the clients to demonstrate sufficient affordability for the borrowing they required.
The outcome
The clients were able to secure the required £402,000 mortgage and proceed with the purchase of their first home.
This case demonstrates why mixed-income joint applications can require more than simply adding two headline incomes together. Where one applicant is employed and another is a contractor, the way the lender assesses each income can materially affect the amount available.
Ways to improve your mortgage affordability
If your initial affordability falls short of £400,000, there are several areas that may be worth exploring depending on your circumstances:
- Reducing existing debts and credit commitments where appropriate
- Considering whether a longer mortgage term is suitable
- Making sure all eligible bonus, commission or other income is being considered
- Exploring lenders whose affordability criteria suit your income structure
- Applying jointly where appropriate
- Increasing your deposit if doing so reduces the amount you need to borrow
Because affordability models and approaches to different income types vary between lenders, choosing a lender whose criteria suit your circumstances can make a significant difference.
How Much Would a £400k Mortgage Cost Per Month?
| Interest Rate | 25-Year Term | 30-Year Term | 35-Year Term |
|---|---|---|---|
| 4% | £2,111 | £1,910 | £1,771 |
| 4.5% | £2,223 | £2,027 | £1,893 |
| 5% | £2,338 | £2,147 | £2,019 |
| 5.5% | £2,456 | £2,271 | £2,148 |
| 6% | £2,577 | £2,398 | £2,281 |
Figures are illustrative and assume a £400,000 capital-and-interest repayment mortgage with the interest rate remaining unchanged throughout the term. They do not include fees or other costs. Actual mortgage rates and repayments will vary.
Next step: Find out how much you could borrow
A salary multiple provides a useful estimate, but the amount you can actually borrow will depend on the lender’s affordability assessment.
Use our How Much Can I Borrow Calculator to get an initial indication based on your circumstances.
If you’re planning to buy a property and want to know whether a £400,000 mortgage may be realistic, book an affordability review with Oportfolio Mortgages and we’ll assess your income, deposit and financial commitments against relevant lender criteria.
Looking at a different mortgage amount?
- £200k mortgage salary guide
- £300k mortgage salary guide
- £500k mortgage salary guide
- £600k mortgage salary guide
- £700k mortgage salary guide
- £800k mortgage salary guide
- £900k mortgage salary guide
FAQ: What Salary Do I Need for a £400k Mortgage in the UK?
Can I get a £400k mortgage on an £80k salary?
A £400,000 mortgage represents exactly 5 times an £80,000 income. Some lenders can consider borrowing at this level where their eligibility and affordability requirements are met, although the amount available will depend on your financial commitments, mortgage term, deposit and other circumstances.
Can I get a £400k mortgage on a £90k salary?
A £400,000 mortgage represents approximately 4.44 times a £90,000 income. This sits within the broad income-multiple range considered by many lenders, although the application will still be subject to a full affordability assessment.
How much deposit do I need if I want a £400k mortgage?
The deposit required depends on the value of the property because £400,000 refers to the mortgage amount rather than the purchase price. For example, if a £400,000 mortgage represented 90% of the property's value, the property would cost approximately £444,444 and the deposit would be around £44,444.
Can two people combine their salaries for a £400k mortgage?
Yes. With a joint application, lenders can usually consider both applicants' incomes when assessing affordability. For example, two applicants earning £45,000 each would have a combined household income of £90,000, making a £400,000 mortgage approximately 4.44 times their combined income. Both applicants' financial commitments and circumstances will also be assessed.
Can contractor income be used for a £400k mortgage?
Yes. Contractor income can be considered for mortgage affordability, but lenders differ in how they calculate it and in the evidence they require. Depending on the applicant and lender, factors such as the current contract, contracting history and the way income is structured can affect the amount used for affordability.
Can I get a £400k mortgage if one applicant is employed and the other is a contractor?
Potentially, yes. On a joint application, a lender may be able to consider an employed applicant's salary alongside the other applicant's contractor income. However, lenders differ in how they assess contractor earnings, so the combined income used for affordability can vary depending on the lender's criteria.
How much would a £400k mortgage cost per month?
The monthly repayment depends on the interest rate and mortgage term. As an illustration, a £400,000 capital-and-interest repayment mortgage at 5% would cost approximately £2,338 per month over 25 years, £2,147 over 30 years or £2,019 over 35 years. Actual mortgage rates and repayments will vary, and fees and other costs should also be considered.
