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Guide · 4 minute read

How much mortgage can I get on a £40,000 salary?

Most lenders offer around 4 to 4.5 times income, so roughly £160,000 to £180,000 on a £40,000 salary. That is the ceiling before affordability checks, which can trim it if you have loans, card debt or childcare costs.

Where the 4 to 4.5 times figure comes from

Lenders size a mortgage with a loan-to-income multiple: your gross annual income times a number they set. Most sit around 4 to 4.5, partly because regulators limit how much of each lender's new lending can be at or above 4.5 times income (currently 15% of new loans, though the Bank of England consulted on removing the blanket cap in April 2026). Some lenders stretch to 5 or 5.5 times for certain professions or larger deposits, but on £40,000 you should plan around 4 to 4.5.

So the headline range on £40,000 is £160,000 to £180,000 of borrowing. Add your deposit to get your price range: £180,000 of loan plus a £20,000 deposit means you can look at homes around £200,000. The mortgage affordability calculator lets you adjust the multiple, deposit and rate to see your own range.

One thing the multiple ignores: it is based on gross salary, not what lands in your account. On £40,000 in 2026/27, with no pension contribution or student loan, take-home is about £2,693 a month. Run your own numbers through the take-home pay calculator before deciding what payment feels comfortable, because the lender's maximum and your comfortable maximum are different questions.

What affordability checks actually test

The multiple is only the first gate. Lenders then check whether you could still pay if rates rose. FCA rules require them to test against at least a 1 percentage point rise above the rate you would revert to; many still stress around 3 points above, which was the old regulatory standard.

The gap is bigger than it sounds. A £180,000 loan over 25 years costs about £1,105 a month at a typical 5.5% rate (roughly the average 5-year fix in June 2026), but about £1,449 a month stressed at 8.5%. Against take-home of £2,693, the stressed payment is over half your income, which is exactly the kind of result that makes a lender shave the loan down rather than lend the full multiple.

How debts and childcare shrink the multiple

Committed monthly outgoings that will continue after you buy (car finance, personal loans, card minimums, childcare) reduce what lenders count as lendable income. A common approach is to deduct them from gross income before applying the multiple, though some lenders reduce the multiple instead.

The effect is sharp. On £40,000 with £300 a month of commitments, that is £3,600 off your income, so 4.5 times £36,400 is about £163,800. A £300 car payment just cost you roughly £16,000 of borrowing. If you are six months from applying, clearing a loan or finishing a finance agreement can add more to your budget than six months of extra saving.

Childcare gets the same treatment, and full-time nursery fees are often the single biggest line. Lenders also look at regular subscriptions, maintenance payments and anything else that shows up consistently on your statements.

Joint applications

Lenders apply the multiple to combined income, so a second salary moves the ceiling a long way. A £40,000 and £28,000 couple has £68,000 of income, which at 4.5 times supports up to about £306,000 of borrowing, before the same commitment deductions. Both credit histories are assessed, and both sets of outgoings count, so a partner with heavy debt can subtract as well as add.

The deposit you need for each price range

Your deposit does two jobs: it tops up the loan to reach the price, and it sets your loan-to-value, which drives the rate you are offered.

• A 10% deposit on a £200,000 home is £20,000. With £180,000 borrowed at 4.5 times £40,000, this is the natural fit for a solo buyer on this salary.
• A 5% deposit on the same home is £10,000. Plenty of lenders offer 95% mortgages, especially to first-time buyers, but the rates are noticeably higher.
• A 15% to 25% deposit unlocks the better rate tiers, which lowers the monthly cost and can also help the stress test.

Remember to keep money aside for legal fees, surveys, moving costs and any stamp duty due, rather than putting every pound into the deposit.

Treat all of this as a starting point, not a quote

Every lender weights income types, bonuses, overtime and self-employment differently, and criteria change often. The numbers here describe typical practice so you can set a realistic search range; an agreement in principle, or a conversation with a whole-of-market broker, is what turns the estimate into a number you can offer with.

Common questions

Can I borrow 5 times my salary on £40,000?

A few lenders go to 5 or 5.5 times income, but usually for specific professions, higher earners or big deposits. On £40,000 with a standard deposit, plan around 4 to 4.5 times (£160,000 to £180,000) and treat anything above as a bonus, not a baseline.

How much deposit do I need on a £40,000 salary?

It depends on the price, not the salary. For a £200,000 home, 10% is £20,000 and 5% is £10,000. A 5% deposit gets you in sooner but at higher rates; 15% or more unlocks cheaper deals.

Does my student loan reduce how much mortgage I can get?

Yes, modestly. Lenders count the repayment as a committed outgoing. On £40,000 with a Plan 2 loan, that is about £80 a month in 2026/27, which trims the maximum loan by a few thousand pounds rather than transforming it.

How much can a couple on £40,000 and £28,000 borrow?

Lenders apply the multiple to combined income, so £68,000 at 4.5 times supports up to about £306,000, before deductions for loans, cards and childcare. Both applicants' credit histories and outgoings are assessed.

What salary do I need for a £250,000 mortgage?

At 4.5 times income, around £56,000 of gross income before commitments, whether sole or combined. At 4 times, around £62,500. Debts and childcare push the required income higher.

Guidance and education, not regulated financial advice. Lender criteria vary and change; nothing here is a quote or an offer of credit.