If you want to borrow £500,000, many lenders start with income multiples (often around 4x to 4.5x), then run a full affordability check based on your outgoings and deposit. As a rough guide, a household income of about £111,000 to £125,000 is often needed for a £500,000 loan, but some applicants may be able to borrow more depending on the lender, the application, and how strong the overall case is.
Feb 23, 2026
Most people searching this are asking about a £500,000 loan amount. If that’s you, here’s how the income maths works using common income multiples:
So, for a straightforward application where the lender sits around 4x to 4.5x, you’re often looking at household income in the region of £111,000 to £125,000 to borrow £500,000.
A key point: income multiple is not the final answer. Lenders still check affordability, and that’s where the real decision happens.
If you want a quick sense-check alongside your deposit and term, you can use the MBNM calculator here.
People use the phrase “£500k mortgage” in two different ways:
If you’re buying a £500,000 property, your mortgage might be much lower than £500,000 depending on your deposit.
Here are simple examples for a £500,000 property:
This matters because the salary required is linked to the loan amount, not the property price.
Your monthly payment depends on three things:
Rather than pretending there’s one “typical” payment, it’s more helpful to understand how term and rate change the number.
Interest-only can reduce monthly payments, but lenders usually expect a clear repayment plan and stricter criteria. It can be an option for some, but it is not automatically available just because someone earns a good salary.
This is the part most blogs skip. You can have the “right” salary on paper and still be offered less than you expect.
Lenders look at affordability, which usually means they assess your income against commitments such as:
They also look at your bank statements and spending patterns. It’s not about judging you, it’s about whether the lender believes the mortgage remains affordable if rates rise and costs change.
This is why two households earning the same amount can receive very different offers.
These examples are here to help you place your own situation.
On income multiple alone, £120,000 could support a £500,000 loan at around 4.1x. Whether it works in practice depends on outgoings, credit history, and the lender’s affordability model.
A combined income of £120,000 often looks strong for a £500,000 loan, but outgoings decide the result. If you have childcare, car finance, and several credit commitments, the maximum borrowing may reduce.
Some lenders will use variable income, but they usually want a track record and may only include a percentage. If your basic salary is £100,000, you might be close to the borrowing you need, and the way the lender treats your bonus could make the difference.
For directors, lenders often assess salary plus dividends, and some consider net profit. The paperwork, the consistency of income, and the lender’s policy are crucial. Two lenders can assess the same accounts in different ways.
Deposit affects two big things:
Common deposit levels people work with include:
If you’re trying to borrow £500,000 specifically, your deposit would be on top of that loan amount, so your property price would be higher. For example, a £500,000 mortgage with a 10% deposit implies a purchase price closer to £555,555.
That’s why it’s important to be clear on whether you mean loan size or property price.
If you’re close but not quite there, it often comes down to preparation rather than luck.
Common improvements that can help include:
When the loan size is £500,000, small differences in lender criteria can matter.
A broker helps by:
Before you apply, get clear on:
If you want a quick sense-check, MBNM can review your situation remotely and talk you through what’s realistic, based on your income, deposit, and outgoings. Advice is delivered by phone, Email or WhatsApp, so you can get clarity without needing an office appointment.
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