If you’re earning £140,000 per year, you have a significant advantage when applying for a mortgage. However, lenders will assess more than just your salary—they’ll also consider factors such as your credit score, deposit size, financial commitments, and affordability before determining the mortgage amount you can secure.
This guide will break down how much you might be able to borrow, the key factors influencing mortgage approval, and how you can improve your borrowing power.
How Much Can You Borrow on a £140,000 Salary?
Mortgage lenders in the UK typically use an income multiple ranging between 3.5 and 5 times annual earnings to determine borrowing capacity.
- 3.5x salary: £490,000
- 4x salary: £560,000
- 4.5x salary: £630,000
- 5x salary: £700,000 (offered by select lenders)
Your actual borrowing limit will depend on creditworthiness, existing financial obligations, and lender-specific criteria.
Key Factors That Impact Mortgage Affordability
Lenders take multiple factors into account when assessing mortgage eligibility beyond just your income. Here are some of the most important considerations:
1. Debt-to-Income Ratio
If you have existing financial commitments such as loans, credit card debt, or car finance, lenders will deduct these from your available income when calculating affordability. Reducing debt before applying can improve your borrowing potential.
2. Credit Score and Financial History
A strong credit score gives you access to better mortgage deals and lower interest rates. If your credit history shows missed payments or high credit utilization, lenders may reduce the amount they’re willing to lend.
3. Living Expenses and Monthly Outgoings
Lenders analyze your monthly expenses—including bills, rent, childcare, and discretionary spending—to assess how much of your salary is realistically available for mortgage repayments.
4. Deposit Amount and Loan-to-Value (LTV) Ratio
A larger deposit lowers your Loan-to-Value (LTV) ratio, making you a more attractive borrower and allowing access to better mortgage rates and lower monthly repayments.
5. Employment Stability and Income Proof
Lenders prefer applicants with stable employment and verifiable income. Self-employed individuals may need to provide at least two years of financial records to prove earnings consistency.
Example Scenario: Buying a Home on a £140,000 Salary
If you earn £140,000 annually, have a 10% deposit, and minimal outstanding debts, your potential home-buying power might look like this:
- Loan amount (4.5x salary): £630,000
- Deposit (10% of property price): £70,000
- Potential home price: £700,000
However, your exact mortgage eligibility will depend on lender affordability assessments and your personal financial circumstances.
How Your Deposit Affects Mortgage Affordability
The size of your deposit plays a crucial role in determining your mortgage terms and borrowing power.
- 5% Deposit (£35,000) – Higher monthly repayments, fewer lender options.
- 10% Deposit (£70,000) – Access to better mortgage products and reduced interest rates.
- 20%+ Deposit (£140,000+) – Best mortgage deals with lowest borrowing costs and interest rates.
A larger deposit lowers the Loan-to-Value (LTV) ratio, helping secure more favorable mortgage conditions.
Government Schemes for Homebuyers
If saving for a deposit is challenging, consider government-backed initiatives to help you get on the property ladder:
- Help to Buy Equity Loan – Provides a 20% loan (40% in London) for new-build homes with a 5% deposit.
- Shared Ownership – Allows buyers to purchase a percentage of a home and rent the remainder, with the option to increase ownership over time.
- First Homes Scheme – Offers 30-50% discounts on selected properties for first-time buyers and key workers.
These schemes help reduce upfront costs and improve accessibility to homeownership.
Strategies to Increase Your Mortgage Borrowing Power
If you want to maximize your mortgage amount or secure better loan terms, consider the following steps:
- Reduce Existing Debt – Lowering outstanding credit card balances and loan repayments improves affordability.
- Improve Your Credit Score – Maintain on-time bill payments, avoid unnecessary borrowing, and check your credit report for any errors.
- Save for a Larger Deposit – A bigger deposit reduces monthly repayments and secures better interest rates.
- Apply for a Joint Mortgage – Combining incomes with a partner or family member can significantly increase overall borrowing capacity.
- Work with a Mortgage Broker – Brokers can help find lenders offering higher income multiples and more flexible lending conditions.
Additional Costs to Consider When Buying a Home
Aside from mortgage repayments, there are several additional expenses to budget for when purchasing a property:
- Stamp Duty – First-time buyers in England and Northern Ireland pay no Stamp Duty on properties up to £425,000.
- Legal and Conveyancing Fees – Covers property searches, contracts, and ownership transfer.
- Mortgage Arrangement Fees – Some lenders charge processing fees for mortgage setup.
- Survey and Valuation Costs – Ensures the home is priced correctly and in good condition.
- Insurance and Moving Costs – Includes home insurance, removals, and furnishing expenses.
Budgeting for these costs ensures a smooth home-buying experience without unexpected financial strain.
Choosing the Best Mortgage for Your Needs
Different mortgage products cater to various financial goals. Here are common mortgage types:
- Fixed-Rate Mortgage – Provides predictable monthly repayments with a set interest rate.
- Tracker Mortgage – Interest rate follows the Bank of England base rate, meaning payments may fluctuate.
- Interest-Only Mortgage – Lower initial payments but requires a plan to repay the principal balance.
- Variable-Rate Mortgage – Monthly payments adjust based on market interest rate changes.
Selecting the right mortgage depends on your financial stability and long-term plans.
Final Thoughts: Can You Buy a Home on a £140,000 Salary?
A £140,000 salary provides strong mortgage affordability, but the actual amount you can borrow depends on deposit size, financial commitments, and lender requirements.
With careful financial planning, a stable income, and a sufficient deposit, you could qualify for a mortgage in the range of £490,000 – £700,000.
For expert mortgage advice and access to the best home loan deals, working with a mortgage broker can help simplify the process and secure the most favorable terms.
