£180,000 Mortgage: Income Needed, Monthly Repayments, and Deposit Explained

A £180000 mortgage sits in the middle range of typical UK borrowing and is common among first-time buyers and movers. Understanding the income required, the monthly repayments you can expect, and how deposit size affects affordability will help you plan your application confidently.

This guide explains how lenders assess eligibility, what affects borrowing capacity, and how you can strengthen your profile before applying. This article provides general information only and does not offer regulated mortgage advice.

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How Much Income Do You Need for a £180,000 Mortgage?

Most lenders base borrowing on income multiples, typically:

• 4× income
• 4.5× income

A few may offer 5× or 5.5× for specific applicant types (such as professionals or high earners), but these are exceptions.

Income Needed at 4× Income

£180,000 ÷ 4 = £45,000 gross annual income

Income Needed at 4.5× Income

£180,000 ÷ 4.5 = £40,000 gross annual income

Higher Income Multiples

Some lenders may stretch to 5× or 5.5× if:

• Credit is clean
• Outgoings are low
• Income is stable
• Deposit is strong

This could bring required income to £33,000–£36,000, depending on lender criteria.

Joint Applicants

Income is combined, making a £180k mortgage more achievable, for example:

• £25,000 + £20,000
• £30,000 + £15,000

Both applicants don’t need equal earnings.

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Monthly Repayments on a £180,000 Mortgage

Repayments depend on the interest rate and term length. The figures below are based on a capital repayment mortgage.

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Repayments at 4% Interest

Term	Monthly Repayment
25 years	~£950
30 years	~£864
35 years	~£795

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Repayments at 5% Interest

Term	Monthly Repayment
25 years	~£1,052
30 years	~£967
35 years	~£904

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Repayments at 6% Interest

Term	Monthly Repayment
25 years	~£1,158
30 years	~£1,079
35 years	~£1,010

These figures show how rate changes affect affordability, especially on mid-range mortgage amounts.

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Deposit Requirements for a £180,000 Mortgage

Deposit size influences:

• Lender choice
• Interest rates
• Affordability
• Acceptance probability

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5% Deposit (£9,000)

• Minimum required by many lenders
• Best for applicants with clean credit
• Higher monthly repayments due to higher LTV

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10% Deposit (£18,000)

• Wider lender choice
• More competitive rates
• Helpful if income is modest or credit is average

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15% Deposit (£27,000)

• Fewer affordability restrictions
• Good for applicants with older adverse credit
• Reduces stress-testing impact

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20–25% Deposit (£36,000–£45,000)

• Unlocks some of the best available rates
• Increases borrowing strength
• Strong overall profile for underwriting

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What Affects Affordability for a £180,000 Mortgage?

Even if your income meets the required level, affordability checks can reduce the amount you can borrow.

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1. Existing Credit Commitments

Lenders review:

• Credit card balances
• Car finance
• Personal loans
• Student loans
• Buy Now Pay Later instalments
• Childcare costs

These commitments reduce disposable income, lowering maximum borrowing.

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2. Credit History

Lenders examine:

• Missed payments
• Defaults
• CCJs
• High credit utilisation
• Payday loan history
• Recent applications for credit

A clean recent track record is important.

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3. Bank Statement Conduct

Lenders check the last 3–6 months for:

• Consistent income
• Controlled spending
• No unarranged overdrafts
• No returned direct debits
• Predictable cash flow

Good bank conduct often influences lender decisions more than the credit score alone.

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4. Employment Type

Lenders look at:

• Permanent employment
• Fixed-term contracts
• Self-employment
• Zero-hours arrangements
• Multiple income sources

Each type has different documentation requirements.

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5. Household Spending

Lenders compare your spending with national models and look at:

• Food and utilities
• Transport costs
• Insurance
• Subscriptions
• Childcare
• School fees (if applicable)

Higher spending reduces affordability headroom.

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Is a £180,000 Mortgage Realistic for You?

You are more likely to be approved if:

• Your income is £40,000–£45,000 (or combined equivalent)
• Your deposit is at least 5–10%
• Your bank statements show stable financial behaviour
• You have few or manageable debts
• Your credit history is clean or only mildly impaired

Applicants with adverse credit may need a larger deposit or a specialist lender.

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How to Strengthen Your Application (General Information Only)

1. Reduce Credit Balances

Lower utilisation improves lender scoring and affordability.

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2. Avoid New Credit Before Applying

Recent credit applications may affect lender confidence.

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3. Maintain Clean Bank Statements

3–6 months of positive conduct can improve acceptance.

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4. Build a Larger Deposit

Every extra 5% opens more lender options.

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5. Check All Credit Files

Review Experian, Equifax and TransUnion for accuracy.

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6. Prepare Documents Early

Lenders typically require:

• 3 months’ payslips
• P60
• Employment contract
• 3–6 months’ bank statements
• Proof of deposit

Self-employed applicants may also need:

• 1–3 years’ accounts
• SA302s and tax year overviews

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Example Borrower Scenarios

Scenario 1: Single applicant earning £45,000

Likely meets income requirements but affordability depends on commitments.

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Scenario 2: Joint applicants earning £22,000 each

Combined income of £44,000 typically supports a £180,000 mortgage.

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Scenario 3: Applicant with older, settled defaults and 15% deposit

Many lenders may consider depending on recency and conduct.

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Scenario 4: Self-employed applicant with one strong trading year

Some specialist lenders may accept with suitable documentation.

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Summary

A £180000 mortgage typically requires an income between £40,000 and £45,000, depending on the lender’s income multiple. Monthly repayments range from roughly £795 to £1,158, and deposit requirements vary from 5% to 25% depending on your credit profile and affordability.

Lenders assess:

• Income
• Credit history
• Existing debts
• Bank statement conduct
• Deposit size

With strong preparation and stable financial behaviour, many applicants achieve approval at this borrowing level.

This article provides general information only. For personalised support, regulated mortgage advice is required.