Mortgage on £40,000 Salary
On a £40,000 salary, you could borrow between £160,000 and £200,000 for a mortgage.
Your Income Details
Calculate how much you can borrow for 2025/26
What You Could Afford
Based on £40,000 combined income
Lenders typically prefer mortgage payments under 35% of your take-home pay.
Borrowing on £40,000
With a £40,000 salary, most UK lenders will offer you between 4 and 4.5 times your income. This means you could borrow £160,000 to £180,000. Some lenders may stretch to 5x (£200,000) for borrowers with excellent credit and low outgoings.
Add a Deposit
With a £25,000 deposit, you could afford a property worth £205,000. A larger deposit means better interest rates and more property options. Aim for 10-20% of the property value for the best deals.
Joint Application
Buying with a partner? If they also earn £40,000, your combined borrowing power would be £360,000 at 4.5x. This significantly increases what you can afford.
Estimated Moving Costs
Based on a property value of approx. £200,000 (assuming 10% deposit).