How much do i need to make to buy a 300k house

Looking to borrow £300k? Our guide outlines how you can improve your chances of qualifying for this mortgage amount.

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If you’re looking to buy a property which requires a £300k mortgage, you’ll want to know how much you need to earn to borrow that amount.

Here, we look at what income you require for this level of borrowing and how lenders calculate if your earnings will stretch far enough. We also identify how a broker can help you reach this limit and what factors could impact your borrowing potential.

What are you looking for?

How much do you need to earn to get a £300k mortgage?

Generally speaking, you can borrow 4.5 times your combined household income. That means your annual earnings would need to be just over £66,000 to borrow £300k. This can be on either a sole or joint basis, depending on how you wish to apply and your personal circumstances.

However, all lenders have different approaches in calculating how much they are willing to extend an applicant. Some may be happy to go above 4 times your income if other parts of your application are strong enough. Some may go up to 5 times and a very select few go to 6 times. The higher the multiplier, the less you need to earn. If you’re eligible for 6 times income – usually only available to certain professions, such as a doctor or lawyer – you would need to earn £50,000 to borrow £300k.

You may find that some lenders do not use income multiples like these to calculate what they are willing to loan. When it comes to borrowing £300k, which is a fairly high amount in terms of mortgages, these lenders will look at many different aspects of your financial situation to determine your eligibility. As a result, there is no one amount that will guarantee you qualify for a £300k mortgage.

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Other factors that can impact your borrowing potential

To be able to borrow as much as 300k for a mortgage, other factors than your income can impact your ability to borrow at that level.

They are:

Interest rate

Credit history

Age

Term length

The rate you are extended will impact how much interest you pay on your mortgage. The higher the rate, the more expensive your mortgage becomes. If your rate is too high, you may have to borrow less than £300k.

Having a bad credit score does not mean you cannot get a mortgage, but it can affect the options available to you – especially for such a large loan. You may find that less lenders consider your application given your credit history and the high amount you are asking to borrow. Plus, lenders may increase the interest rate they extend to mitigate the higher risk of loaning you money. As a result, you may have to borrow less.

Lenders usually have a maximum applicant age of around 70 – 75 years old, though some will go higher. As you are applying for such a high amount, you may find you have fewer providers willing to consider your application if you are over 75. If you’re borrowing beyond this age then the amount you can borrow will likely be based on your projected retirement income rather than what you earn at the current time.

Mortgages are often around 25 years in length. However, some lenders are happy to extend the term (sometimes to 35 or even 40 years), which can lower your repayments making the loan more affordable on a monthly basis. The amount of interest you pay in total will be more with a longer term, but extending the length can make borrowing £300k more feasible.

How much deposit do you need for a £300,000 mortgage?

Typically, you will need at least a 10% of the property value as a deposit. So, if you were borrowing £300,000, the property price would need to be £333,333 and a 10% deposit would be £33,333.

Some lenders may only need 5% though. However, the higher your deposit the more you can usually borrow as it lowers the risk for lenders of extending you such a large loan. Plus, a larger deposit will improve your LTV ratio making it more likely you’ll be given a loan with a lower interest rate.

How a broker can maximise your borrowing

A broker has expert, in-depth knowledge of the market and its providers, which can materially improve your chances of being approved for a £300k mortgage and maximise your borrowing. Brokers can apply that knowledge and advise you as to the best lender for your specific situation.

For example, if you need to borrow more than 4.5 times your household income, they will know which lenders sometimes use higher income multiples and who may consider your application given your financial circumstances. Or, if some of your income comes from bonuses and commissions or rental income, they will know which lenders accept these as part of their affordability assessment.

If you get in touch we can arrange for a broker who has experience securing mortgages for such amounts to contact you straight away for a free, no obligation consultation.

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Calculate whether your income stretches far enough

When budgeting for a mortgage, especially one at this level, it’s important to know whether it is affordable to you. You, and your potential provider, need to consider your outgoings (like outstanding debts or school fees) as well as your income to determine whether you can make the potential monthly repayments.

Use our calculator to see how much you could potentially borrow given your income and expenditure.

Mortgage Affordability Calculator

Our affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest.

Your Income

Input full salaries for all applicants

You could borrow up to 

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Example calculations

Here are some hypothetical examples using the basic multiplier method of calculating potential mortgage amounts.

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Get matched with the right mortgage broker for a £300,000 mortgage

Different lenders have different approaches to assessing a person’s eligibility criteria and whether they can afford a mortgage. Plus, lenders like to stress test an applicant’s ability to keep up with repayments which is particularly important for those looking to borrow a high amount like £300k.

Speaking to a broker can be the swiftest way to secure such a mortgage as they will be able to maximise your borrowing and minimise the interest rate you are offered. They do this by weighing up your best options considering your situation – such as your age, your deposit, your income and your income source. They’ll then suggest a suitable provider.

We offer a free, no-obligation broker matching service which will put you in touch with a mortgage advisor who can advise you on borrowing at this level. Call us today on 0808 189 2301 or make an enquiry so we can connect you with an expert.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

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*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.