Low income mortgages
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.
Your guide to what you can afford.
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Table of contents
2 minutes
Updated: August 18th, 2025
Understanding low income mortgage options
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. Navigating these limitations often requires specific knowledge about low income mortgage options.
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, understanding low income mortgage options becomes crucial.
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 proprietor
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.
How much can you borrow?
Find out your borrowing potential quickly and easily. Use our calculator to see what mortgage amount you could realistically afford today.
About the author
Phil Scott: Director
Phil Scott is the Founder and Managing Director of The Mortgage Centres, one of the UK’s leading independent, whole-of-market mortgage brokerages. With over 30 years of experience and a network of specialist branches, Phil has built a firm defined by manual advocacy and comprehensive market access.
Under his leadership, The Mortgage Centres provides high-touch advisory services for the full spectrum of UK borrowers – from standard residential moves for first-time buyers to complex specialist lending for portfolio landlords. Phil’s institutional approach ensures that every client receives a level of scrutiny and lender access that automated platforms cannot match.
Qualifications:
- FCA Regulated: Leading compliant, high-trust advice since 1992.
- Financial Planning Certificate: 1, 2 & 3 | Year Attained: 1992
- Certificate in Mortgage Advice and Practice (CEMAP) | Year Attained: 2001
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