Earning £190,000 per year places you in an excellent position to secure a mortgage, but the final loan amount depends on more than just income. Lenders consider credit history, financial commitments, living expenses, and deposit amount when assessing affordability.
This guide will outline estimated borrowing amounts, factors influencing mortgage approval, and strategies to maximize your borrowing power.
How Much Can You Borrow on a £190,000 Salary?
Mortgage lenders in the UK generally apply an income multiple ranging from 3.5 to 5 times annual salary to determine borrowing capacity.
- 3.5x salary: £665,000
- 4x salary: £760,000
- 4.5x salary: £855,000
- 5x salary: £950,000 (offered by select lenders)
While these figures offer a guideline, the exact amount you can borrow depends on credit score, existing debt, and affordability assessments by lenders.
Key Factors That Affect Mortgage Affordability
While your salary is a crucial factor, lenders will also evaluate other financial indicators before approving a mortgage. Here are the most critical considerations:
1. Debt-to-Income Ratio
If you have existing financial commitments, such as loans, car finance, or credit card balances, lenders will factor these into affordability calculations. Keeping debt levels low improves mortgage eligibility.
2. Credit Score and Financial Health
A high credit score improves access to better mortgage rates and borrowing limits. A poor credit score may lead to lower loan approvals or higher interest rates.
3. Living Expenses and Outgoings
Lenders will assess your household bills, travel expenses, childcare costs, and other outgoings to calculate how much you can comfortably afford in monthly mortgage repayments.
4. Deposit Size and Loan-to-Value (LTV) Ratio
A larger deposit decreases your Loan-to-Value (LTV) ratio, lowering lender risk and securing better mortgage rates.
5. Employment Type and Income Stability
Lenders prefer applicants with steady and verifiable income sources. If self-employed, expect to provide at least two years of financial records.
Example Scenario: Buying a Home on a £190,000 Salary
If you earn £190,000 per year, have a 10% deposit, and minimal financial obligations, your potential home-buying power might look like this:
- Loan amount (4.5x salary): £855,000
- Deposit (10% of property price): £95,000
- Potential home price: £950,000
Lenders may adjust your borrowing limit based on affordability assessments and financial history.
How Your Deposit Affects Mortgage Affordability
The size of your deposit significantly influences mortgage terms and monthly repayments.
- 5% Deposit (£47,500) – Higher repayments, fewer mortgage products available.
- 10% Deposit (£95,000) – More lender options and improved interest rates.
- 20%+ Deposit (£190,000+) – Best mortgage rates with reduced overall borrowing costs.
A larger deposit reduces your Loan-to-Value (LTV) ratio, making mortgage approval easier and more affordable.
Government Schemes for Homebuyers
If saving for a deposit is challenging, consider government-backed home ownership schemes:
- Help to Buy Equity Loan – Offers a 20% loan (40% in London) for new-build homes with a 5% deposit.
- Shared Ownership – Allows you to buy a portion of a home and rent the rest, with the option to increase ownership.
- First Homes Scheme – Provides 30-50% discounts on selected properties for first-time buyers and key workers.
These schemes can help reduce initial costs and make homeownership more accessible.
Strategies to Increase Your Mortgage Borrowing Power
To maximize your borrowing amount or secure better repayment terms, consider these strategies:
- Lower Your Debt – Paying off existing loans and reducing credit card balances can increase affordability.
- Boost Your Credit Score – Maintain timely payments, avoid excessive borrowing, and check for credit report errors.
- Increase Your Deposit – A larger deposit leads to lower monthly repayments and better interest rates.
- Apply for a Joint Mortgage – Combining incomes with a partner or family member can significantly increase borrowing capacity.
- Consult a Mortgage Broker – Brokers can help find lenders offering higher income multiples and flexible lending terms.
Additional Costs to Budget for When Buying a Home
Beyond mortgage repayments, homeownership includes other expenses. Proper budgeting ensures a stress-free purchasing process:
- 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 transfers.
- Mortgage Arrangement Fees – Some lenders charge setup fees for processing mortgage applications.
- Survey and Valuation Costs – Ensures the property is accurately priced and structurally sound.
- Insurance and Moving Costs – Includes home insurance, removals, and furnishing expenses.
Budgeting for these costs helps avoid unexpected financial strain.
Choosing the Right Mortgage for Your Needs
Different mortgage types cater to different financial needs. Here are some common options:
- Fixed-Rate Mortgage – Offers predictable monthly repayments with a locked-in interest rate.
- Tracker Mortgage – Interest rate follows the Bank of England base rate, meaning payments fluctuate.
- Interest-Only Mortgage – Lower initial payments but requires a long-term repayment plan.
- Variable-Rate Mortgage – Monthly payments adjust based on market interest rate changes.
Selecting the right mortgage depends on your financial situation, risk tolerance, and long-term goals.
Final Thoughts: Can You Buy a Home on a £190,000 Salary?
A £190,000 salary provides strong mortgage affordability, but the final amount you can borrow depends on deposit size, existing financial obligations, and lender requirements.
With responsible financial planning, a stable income, and a sufficient deposit, you could qualify for a mortgage in the range of £665,000 – £950,000.
For expert mortgage advice and access to the best home loan rates, consulting a mortgage broker can help you navigate the mortgage process and secure the best terms.
