How Much Mortgage Can I Get on a £40,000 Salary?
One of the most common questions from first-time buyers is how much they can borrow. The answer depends on your income, your deposit, your outgoings — and which lender you approach. Here's a practical guide for 2026.
The income multiple rule of thumb
Most UK mortgage lenders use an income multiple as a starting point for how much they'll lend. The standard is 4 to 4.5 times your annual gross salary. Some lenders will stretch to 5x or even 5.5x for high earners or professionals.
| Salary | 4x | 4.5x | 5x | 5.5x |
|---|---|---|---|---|
| £30,000 | £120,000 | £135,000 | £150,000 | £165,000 |
| £40,000 | £160,000 | £180,000 | £200,000 | £220,000 |
| £50,000 | £200,000 | £225,000 | £250,000 | £275,000 |
| £60,000 | £240,000 | £270,000 | £300,000 | £330,000 |
| £80,000 | £320,000 | £360,000 | £400,000 | £440,000 |
On a £40,000 salary, you're typically looking at borrowing between £160,000 and £200,000. Add your deposit and that gives your maximum property budget.
It's not just about income — affordability matters more
Since the Mortgage Market Review in 2014, lenders must carry out a detailed affordability assessment. They'll look at:
- Monthly outgoings — existing loans, credit cards, car finance, childcare costs
- Committed spending — subscriptions, regular bills
- Stress testing — can you still afford repayments if interest rates rise by 3%?
Two people with identical salaries can receive very different mortgage offers depending on their credit commitments. Someone with a £300/month car loan and £5,000 in credit card debt will typically borrow significantly less than someone with none.
What monthly payments look like in 2026
With average 5-year fixed rates around 4.1% in early 2026, here's what monthly repayments look like on a 25-year repayment mortgage:
| Mortgage size | Monthly payment (4.1%, 25yr) | Total repaid | Total interest |
|---|---|---|---|
| £150,000 | £799 | £239,700 | £89,700 |
| £180,000 | £959 | £287,700 | £107,700 |
| £200,000 | £1,065 | £319,500 | £119,500 |
| £250,000 | £1,331 | £399,300 | £149,300 |
The deposit — and why LTV is everything
Your Loan-to-Value (LTV) ratio is the mortgage as a percentage of the property value. A lower LTV unlocks better interest rates, which significantly reduces your monthly payment and total cost.
| Property value | Deposit | LTV | Typical rate |
|---|---|---|---|
| £220,000 | £11,000 (5%) | 95% | ~5.0% |
| £220,000 | £22,000 (10%) | 90% | ~4.5% |
| £220,000 | £44,000 (20%) | 80% | ~4.2% |
| £220,000 | £55,000 (25%) | 75% | ~4.0% |
On a £180,000 mortgage, the difference between a 95% LTV rate and a 75% LTV rate is roughly £80–100/month and around £25,000 in total interest over 25 years. If you can stretch your deposit even slightly, it's almost always worth it.
Buying with a partner
Joint mortgages typically use a multiple of combined income, though some lenders use 1x the higher income + 1x the lower. On two salaries of £40,000 each (£80,000 combined), you could typically borrow £320,000–£400,000.
Stamp Duty in 2026
From April 2025, the nil-rate threshold for standard purchasers reverted to £125,000 (it had been temporarily raised to £250,000). First-time buyers retain a higher nil-rate threshold of £300,000 on properties up to £500,000.
| Property value | First-time buyer SDLT | Standard SDLT |
|---|---|---|
| £200,000 | £0 | £1,500 |
| £250,000 | £0 | £2,500 |
| £300,000 | £0 | £5,000 |
| £350,000 | £2,500 | £7,500 |
Calculate your exact mortgage repayments
Model different loan sizes, rates and terms. See total interest, LTV and overpayment scenarios.