How Much Do You Need to Earn for a £325000 Mortgage?

How Much Do You Need to Earn for a £325,000 Mortgage?

If you’re asking how much do you need to earn for a £325000 mortgage, you’re likely checking whether your income realistically supports this level of borrowing. While many people expect a simple salary figure, mortgage lenders look at affordability as a whole — not just income.

This guide explains the typical income needed for a £325,000 mortgage, how lenders calculate affordability, and what factors can increase or limit how much you’re able to borrow.

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Quick Answer: How Much Salary Is Usually Needed?

Most lenders work to an income multiple of around 4 to 4.5 times annual income.

Based on that:

• £325,000 ÷ 4.5 = around £72,000
• £325,000 ÷ 4 = around £81,250

In practical terms, most borrowers will need an income between £72,000 and £82,000 to borrow £325,000, assuming standard living costs and no significant financial commitments.

This is a guideline rather than a guarantee — affordability checks ultimately determine the final figure.

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How Lenders Calculate Mortgage Affordability

Income multiples set an upper limit, but affordability testing decides whether monthly repayments are sustainable over the long term.

Lenders typically assess:

• Your income (salary, bonuses, overtime, or self-employed earnings)
• Regular outgoings such as loans, credit cards, childcare, and maintenance
• Existing financial commitments
• The mortgage term you choose
• Whether repayments would remain affordable if interest rates rise

Even if your income fits the multiple, high monthly outgoings can reduce what a lender is willing to offer.

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Income Requirements for Different Buyer Types

Single applicants

If you’re applying on your own, lenders rely entirely on one income. In most cases, a single applicant will still need around £72,000–£82,000, with stable employment and limited unsecured debt.

Single-income applications are assessed more cautiously, which is why lender choice can make a meaningful difference. This is explored further in our guide on getting a mortgage on one income.

Joint applicants

Joint applications allow incomes to be combined, improving affordability.

For example:

• £42,000 + £40,000 = £82,000 combined income

This can make borrowing £325,000 more achievable than relying on one income alone.

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What Are the Monthly Repayments on a £325,000 Mortgage?

Monthly repayments depend on the interest rate and mortgage term you choose.

As a rough guide:

• Over 25 years: typically around £1,650–£1,950 per month
• Over 30 years: lower monthly payments, but higher total interest
• Shorter terms: higher monthly cost, but less interest overall

Lenders stress-test these payments to ensure they remain affordable if interest rates increase.

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How Your Deposit Affects the Income You Need

A larger deposit can significantly improve affordability.

Although the mortgage amount remains £325,000, a higher deposit can:

• Reduce lender risk
• Unlock more competitive interest rates
• Make affordability calculations more flexible

Typical scenarios include:

• 10% deposit: standard lending criteria
• 15–20% deposit: wider lender choice and easier affordability

If your deposit is smaller, lenders may expect a higher income to offset the increased risk.

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Can You Get a £325,000 Mortgage With Bad Credit?

Yes — it’s possible, though criteria are usually stricter.

Lenders typically look at:

• How recent the credit issues were
• Whether debts are settled
• How you’ve managed your finances since

Missed payments, defaults, or historic CCJs don’t automatically rule out a £325,000 mortgage, but a larger deposit or specialist lender may be required.

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What If You’re Self-Employed?

Self-employed applicants can still qualify for a £325,000 mortgage, but income is assessed differently.

Most lenders will look at:

• Two years of accounts or tax calculations
• Averaged income over recent years
• Salary and dividends for limited company directors

Some lenders take a more flexible view where income is stable or increasing. This is covered further in our guide for self-employed first-time buyers.

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What Can Reduce How Much You’re Allowed to Borrow?

Even if your income appears sufficient, lenders may reduce borrowing due to:

• Personal loans or car finance
• Credit card balances
• Childcare costs
• Maintenance payments
• Regular overdraft use

Bank statements are a key part of this assessment, as they show how income is managed month to month.

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How to Improve Your Chances of Affording a £325,000 Mortgage

Improving affordability is often more effective than increasing income alone.

Helpful steps include:

• Reducing unsecured debts
• Avoiding overdraft reliance
• Avoiding new credit applications before applying
• Keeping spending consistent
• Saving a larger deposit where possible

Small changes can have a meaningful impact on lender calculations.

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What If Your Bank Says You Don’t Earn Enough?

A decline from your bank doesn’t necessarily mean a £325,000 mortgage isn’t achievable.

High street lenders often apply stricter affordability models. Other lenders may:

• Accept variable or multiple income streams
• Take a more flexible view of credit history
• Use different affordability stress tests

Choosing the right lender can significantly affect the outcome.

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Key Takeaways

• Most borrowers need £72,000–£82,000 income for a £325,000 mortgage
• Income multiples are only part of the assessment
• Monthly outgoings strongly influence affordability
• Larger deposits improve lender choice and interest rates
• Specialist lenders may help where banks decline

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This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.