Mortgage question
What income do I need to borrow £300,000 on a mortgage in the UK?
At the standard 4.5× income multiple you’d need around £66,700 household gross to borrow £300,000 in 2026, but mainstream UK lenders now stretch to 4.75× for higher earners and 5.5–6× via targeted products like Nationwide Helping Hand and Skipton Track Record, pushing the entry point down to roughly £50,000–£55,000.
What does each income multiple translate to?
Lenders start from a loan-to-income (LTI) multiple, then overlay a stress test, then a full affordability model. For a £300,000 loan, the LTI maths looks like this in April 2026:
| Multiple | Household income needed | Where it’s available |
|---|---|---|
| 4.49× | £66,815 | Default for applicants under £50k gross |
| 4.50× | £66,667 | Most high-street mainstream |
| 4.75× | £63,158 | Halifax / Nationwide enhanced (typically £50k+ income) |
| 5.50× | £54,545 | Nationwide Helping Hand (FTBs, £35k+ solo / £55k+ joint) |
| 6.00× | £50,000 | Perenna / April Mortgages (long fixes, niche) |
That range is wide, and the stretch isn’t automatic. Above 4.5× each lender is constrained by the PRA’s flow limit (no more than 15% of their book above 4.5× LTI per quarter), so the high-multiple products come and go.
What else affects the number?
Beyond raw income, lenders bake three big deductions into affordability:
- Monthly credit commitments. Card minimums, car finance, personal loans and BNPL balances all reduce the ceiling. A £350/month car lease typically cuts borrowing power by around £15,000–£20,000.
- Dependants. Each child knocks off roughly £50–£90 of monthly “spare income,” which translates to about £9,000–£15,000 of lost borrowing capacity per child depending on the lender’s model.
- Student loans. Plan 1, 2 and 5 repayments show on your payslip and are treated as a fixed monthly outflow. For a £55k earner on Plan 2, that’s £257/month gone from the affordability pot.
The FCA’s 2025 rule review has eased things slightly: the mortgage stress test now applies reversion rate + 1 percentage point (down from the old SVR + 3pp). On a 5-year fix at 4.75%, you’re stressed at roughly 8.5% rather than the pre-reform ~9.5% — worth about £15,000–£25,000 of extra borrowing on a £300k loan for a typical earner.
Run your own numbers with our affordability calculator — it applies the 2026 stress test and credit deductions automatically.
Worked example: a typical couple
Imagine a couple earning £42,000 and £28,000 — £70,000 joint. No children, £220/month student loan (one on Plan 2), and a £180/month car finance ending in nine months.
- Barclays / HSBC (standard 4.5×): borrowing limited to roughly £295,000–£305,000. Just about there.
- Halifax (4.75× available because joint income is over £50k each component isn’t the test — total matters): ceiling moves up to around £315,000.
- Nationwide Helping Hand (FTBs only, 5.5×): ceiling around £360,000 — but only with a minimum 5% deposit and a 5- or 10-year fix.
Same couple, same pay, three different answers. That’s why a whole-of-market broker earns their fee on cases near the affordability edge.
Does the deposit change the income I need?
Indirectly, yes. At 95% LTV most lenders cap LTI at 4.49×, so a thin deposit caps the income multiple even if you’d qualify for more. Push the deposit up to 15% (85% LTV) and the higher multiples open up. That’s one reason the Freedom to Buy scheme doesn’t always help people with borderline incomes — the LTV relief is real, but the LTI constraint bites.
The misconception that bites hardest
Many applicants assume “gross salary” means just the basic number on their contract. It doesn’t — lenders count a careful share of bonuses, commission, overtime and allowances. Halifax typically uses 60% of a 2-year bonus average; Nationwide uses 100% of guaranteed bonus but only 50% of discretionary. A £65,000 basic plus £15,000 discretionary bonus can look like £72,500 gross to Nationwide but only £74,000 to Halifax — and on a £300k loan that difference can flip the decision. Read our deep dive on how lenders count bonus, commission and overtime before you apply.
This is information, not regulated advice. For a product tailored to your figures, speak to a whole-of-market broker.
Sources
Information, not regulated advice. Mortgage Notes is not an FCA-authorised mortgage adviser. For a recommendation on your specific circumstances, speak to an FCA-authorised broker.