Can I Get a Mortgage on a Low Income?

Who is this page for?

If you’re worried about being approved for a mortgage due to being on a lower income, this page will take you through what you need to consider, before you apply.

Can I get a mortgage on a low income?

It is possible to get a mortgage if your income is low. A “low” income is relative, but could generally be defined as less than the national average. One of the key methods of checking your mortgage eligibility is to apply for an Agreement in Principle.

How much you earn will affect how much you can borrow from a lender. This is because the lender will have to be sure you can make monthly repayments.

That said, income is not the only factor a lender will look at when deciding to offer you a mortgage. For example, if you have a big deposit, but low income, perhaps from inheritance, you could still be eligible for a mortgage.

Buying with another person can also help you to afford a mortgage. This is because a lender will look at your joint income to decide how much you can borrow.

Lenders will also look at other factors, such as:

  • Deposit size
  • Extra sources of income
  • Savings
  • Credit history
  • Living costs
  • Type of home you want to buy

In short, all that matters is that you can afford the repayments. If you can prove that you will be able to repay your mortgage long term, your income should not stop you from getting a mortgage.

How much do I need to earn to get a mortgage?

There is not a set wage you need to earn to get a mortgage. Instead, it will depend on the lender.

Most lenders will look at what you can afford on a case by case basis. But some may have set conditions that can stop you from getting approved. This might include a limit of how much you need to earn.

When looking at your mortgage request, lenders will mostly focus on three factors.

Your income

This includes your yearly wage and other sources of income. For example, your assets, any financial support, or pension payments.

Your outgoings

Any loan or credit card payments may affect how much you can borrow. Lenders will look at your monthly outgoings, such as bills, food, or travel.

Monthly Repayments

Your mortgage is usually only offered at a fixed rate for a set period. So lenders may look to see if moving to a higher interest rate would affect your ability to repay your mortgage.

It is still important to think about what you can afford, both now and in the future. Remember, there are many costs attached to applying for a mortgage. This includes legal and conveyancing fees and Home Insurance.   

Getting a mortgage on a low income

To get a mortgage on a low income, you will need to prove you can afford the repayments and can handle your money well. This means making all other parts of your application shine.

There are some simple ways you can do this. This includes:

  • Raising your credit score. Your credit history is a sign of how trustworthy you are as a borrower. The higher this is, the more likely lenders are to accept your mortgage request.
  • Reducing your debts. It’s a good idea to repay any debts or loans before applying for a mortgage. The lower your monthly outgoings, the better chance you may have of being accepted.
  • Saving up for a bigger deposit. The higher the deposit on your home, the less you will need to borrow. This can mean lower monthly repayments that you can afford.
  • Lowering your costs. Lenders will want a rough idea of your expenses. Reducing how much you spend on subscriptions or even quitting smoking can help.

Joint mortgages

If you are buying a home with a partner, a joint mortgage might be a way to get a mortgage on a lower income. If you apply together, the lender will look at your combined income, which can mean you’re able to borrow more.

Both parties will be responsible for paying off the mortgage. So it is important to check the other person is in a secure position to do so.

Government Schemes

There are many schemes out there to help you get on the property market.

  • Shared Ownership. You can buy a share of a home through a mortgage. Then rent the rest at a lower rate from the government or housing association.
  • Help to Buy Equity Loans. First-time buyers looking to buy a newbuild home can borrow 20% of the home value as a loan from the government. This loan is interest-free for the first five years.

The content on this page is for reference and does not constitute finance advice.

For impartial financial advice, we recommend government bodies like the Money Advice Service.

Related pages

Calculators & tools

We have a range of mortgage calculators to help you:

  • Find out how much you could borrow from Lloyds Bank
  • See how much you could save if you make overpayments on your mortgage
  • Get an idea how a change to the Bank of England Base Rate could affect your monthly payments

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