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Author: Carl Shave-Director
Updated on January 30th, 2024

Can I get a low income mortgage?

It is possible to obtain a low-income mortgage. While income is important to mortgage lenders, it is your affordability that will determine your eligibility. Few lenders have a minimum income cap. In most cases, mortgage providers are willing to lend between four and four-and-a-half times your annual salary.

To determine what mortgage will be suitable for you, lenders will require you to complete an affordability check. This enables a lender to analyse your monthly income against your outgoings and provides proof that you will be able to cover your mortgage comfortably. However, in some circumstances, the outcome of the affordability check may limit the type of mortgage you can acquire.

Considering the present level of home prices, it may appear unfeasible when calculating affordability. While there is no one-size-fits-all answer, if you earn £20,000 per year and discover that the amount you may borrow makes homeownership appear out of reach, you may want to investigate the following choices. Among these are:

Shared Ownership

An alternative homeownership scheme that enables you to step onto the property ladder by purchasing a share of the property. You will pay a mortgage on the share you own and pay rent on the share you do not own. Generally, you are able to staircase, which gives you the opportunity to purchase more shares in your home.

Joint Borrower Sole Ownership

Similar to a guarantor, someone else’s income can be considered to determine affordability, but they do not legally own the property.

Deposit Unlock

A scheme aimed more to aid individuals with a 5% deposit than to help with affordability, but nonetheless worth mentioning.

Gifted deposit

You may be eligible for help in connection to the deposit amount, such as a gift from a family member. Those providing the gift may consider Equity Release as an alternative.

Stamp Duty

Certain restrictions apply. This offer is conditional, and second-home and investment property buyers are excluded. These programmes cannot be combined and are only offered on specific properties. Please contact a member of our team for further information.

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