Answers · UK 2025/26
How big a mortgage can I get on a GBP 40,000 salary?
Typically around GBP 180,000, based on the common 4.5x income cap (4.5 x GBP 40,000). Some lenders stretch to 5x (GBP 200,000) or more for higher earners, but affordability checks on your outgoings can pull the figure down.
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Most UK lenders cap borrowing at roughly 4 to 4.5 times gross annual income, so on a GBP 40,000 salary you can usually borrow about GBP 160,000 to GBP 180,000. A few lenders offer 5x or even 5.5x for borrowers with strong credit and higher incomes, which could reach GBP 200,000 to GBP 220,000, but income multiples are only the starting point. Lenders then run an affordability assessment that subtracts committed outgoings - other loans, credit cards, childcare, and a stress test on a higher interest rate. A GBP 700-a-month car finance payment, for example, can shave tens of thousands off the maximum. Worked example: borrowing GBP 180,000 over 25 years at 5.0% costs about GBP 1,052 a month. On a GBP 40,000 salary your take-home pay is roughly GBP 2,560 a month after Income Tax (20% basic rate, GBP 12,570 Personal Allowance) and National Insurance (8% between GBP 12,570 and GBP 50,270), so that payment is around 41% of net income - lenders generally prefer mortgage costs below 35 to 40% of net pay. Adding a deposit increases the property price you can target: GBP 180,000 borrowing plus a GBP 20,000 deposit buys a GBP 200,000 home. Use the mortgage affordability calculator to factor in your deposit and outgoings, and the take-home pay calculator to check your real monthly budget. See gov.uk for guidance on buying a home.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.