Can you get a mortgage on low income?

Getting a mortgage can be challenging – and especially if you’re not a big earner. But it’s not impossible if you play your cards right. Esther Shaw explains all

It is possible to get a mortgage on a low income. And there are practical ways to boost your chances of getting accepted.

While the whole thing might feel daunting, know that you are not alone.

In this guide, we are going to help you navigate your way through the process. We’ll explore the challenges you might be facing, the options to consider, and the steps that can help make a difference – from boosting your deposit to using a broker to help find lenders more willing to help. 

We’re going to walk you through the process of how to get a mortgage on a low income.

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What is considered a ‘low income’ in the UK?

There is no fixed definition of ‘low income’ in the UK. Broadly speaking, it refers to earnings below the national average. The Office for National Statistics (ONS) puts the median full-time salary at £39,039.

But what you need to realise is that lenders don’t apply a strict income threshold. Instead, they focus on affordability – assessing income, outgoings and debts. 

Currently, most major lenders will typically offer between 4 times and 4.5 times household income, but this will be weighed up against household expenses. (more below).

Can I get a mortgage with a low income?

If you are on a low income, you may worry that you won’t be able to get a home loan – but this is not the case. It is possible to get a mortgage; you just need to be aware that lenders may be more cautious.

With this in mind, if you’re a ‘low-income’ borrower, it’s well worth speaking to a broker, as they can give you tailored advice. 

Here at Becleverwithyourcash, we’ve teamed up with award-winning mortgage broker, Tembo, meaning you can get access to free mortgage advice and help with applications. This can be a real help if you’re worried about whether you’re earning enough. You can access the service via our affordability calculator.

When it comes to the rules on affordability, you need to understand that lenders will use a multiple of your annual income to work out how much to lend to you. (more below).

Affordability criteria

• Income
• Means testing
• Outgoings (including bills, travel, childcare and so on)
• Existing debts and credit commitments
• Your credit history and credit score
• Lenders may also stress-test you (and your financial position) against higher interest rates – to see if you could still afford your monthly payments, should they go up

Typical mortgage requirements

• Deposit (statement of savings account or similar)
• Documents (including proof of ID and proof of address)
• Proof of being a UK resident
• Employment status and stability
• Details of debts and outgoings
• Credit history
• Proof of income (such as payslips or accounts from self-employment – as well as details of benefits)
• Bank statements from the past few months 

How much can I borrow on a low income?

As mentioned above, lenders will currently usually offer between 4 times and 4.5 times salary. 

As an example, if you were earning £30,000 a year, a lender may be prepared to lend between £120,000 and £135,000. But it’s important to take this as a guide, as lenders will now look at your broader financial picture to work out how much you can afford.

To get an estimate of how much you might be able to borrow, make use of our mortgage calculator. This tool can also give you an idea of what your monthly repayments might be.

Also check out our mortgage comparison table to see what deals are currently on offer. 

What counts as income?

When applying for a mortgage, you need to understand what you can declare as income – so as to maximise this. You might not realise is that it’s not only your salary which counts; lenders may also include bonuses as well as earnings from self-employment. 

In addition, some may accept benefits, such as Universal Credit. 

And don’t forget, if there are two of you, and you’re applying ‘jointly’ for the mortgage, combining incomes can increase the amount you’re able to borrow.

How big should my deposit be?

When it comes to building a deposit, the best approach is to amass the biggest pot of savings that you can.

A big deposit means you will have a lower ‘loan-to-value’ (LTV). This is the ratio between the amount you owe and the value of your property. Say, for example, you’re hoping to purchase a property for £250,000, and have a deposit of £50,000, you’d be putting down 20% of the price as a deposit – meaning your LTV would be 80%. With £25,0000, you’d be putting down 10%, meaning an LTV of 90%.

If you have a larger deposit – and a lower LTV – a lender will view you as lower risk and typically offer you better interest rates. This should mean your monthly payments will be lower – so you’ll pay less interest overall. The very best mortgage rates go to borrowers with a 40% deposit.

The problem is, for many, this just isn’t doable.

Ideally, you’ll need more than 10% of the property value. That said, it’s possible to get accepted for a mortgage with just a 5% deposit these days. This may be reassuring to hear, as saving for a 5% deposit may feel a lot more achievable – with some careful budgeting. 

Ways to boost your deposit

When thinking about where to build your deposit, a regular saver can be a clever option to help you develop a good savings habit, and there are great rates on offer. 

And don’t forget about the Lifetime ISA or (LISA) – one of the best-paying savings accounts. With this vehicle, you can pay in up to £4,000 a year, and get a 25% annual bonus, worth up to £1,000 annually. This is a great way to get ‘free’ money. Read more about LISAs in our full guide.

In addition, there are other ways to boost your deposit – such as selling an asset you own, such as a car. Alternatively, you could use a work bonus. 

If you’re lucky, you may even get help from family. Just note that if your deposit is gifted, it will be assessed slightly differently. Lenders will usually require the parent or family member to sign a declaration confirming that it’s a non-repayable gift.

Maximise your chances of getting approved

There are several steps you can take to strengthen your mortgage application:

• Improve your credit score (by clearing outstanding debts, paying bills on time and checking your credit report for errors)
• Reduce monthly outgoings (cancel unused subscriptions, and bring down debts such as credit cards)
• Save a larger deposit to improve affordability and borrowing options
• Demonstrate stable employment
• Keep good records of all sources of income (including benefits or earnings from self-employment)
• Avoid any major financial changes before applying, such as taking out a new personal loan or making a big purchase
• Consider a ‘joint borrower sole proprietor’ (JBSP) mortgage to boost eligibility (this allows two people to apply together, but only one owns the property. The additional income helps meet affordability checks and boosts your chances of getting approved. Just note that both individuals are responsible for repayments)
• Compare lenders – and their lending criteria – carefully, as some specialise in low-income mortgages
• Use a mortgage broker. A broker can help you find the best deal to suit your circumstances. Be sure to check out our partner, Tembo for guidance and tailored options

What Government schemes are available?

As a low-income buyer, there are a host of support options you might want to take a look at: 

• Shared ownership– this is a Government-backed affordable ‘part buy part rent’ housing scheme aimed at helping those struggling to buy on the open market. You can buy anything from 25% to 75% of the property and rent is paid to the housing association that owns the house. Read more with our full guide
• First Homes Scheme – this scheme gives a discount of between 30% and 50% off a new-build home. You need to earn £80,000 or less, and must be able to get a mortgage for at least half the price of the property. Read more here
• Right to Buy – enables eligible council tenants to purchase their homes at a discount
• Right to Acquire – offers a similar scheme for housing association tenants, usually with smaller discounts and stricter eligibility
• Deposit Unlock – this helps first timers and home movers purchase a new-build home with a 5% deposit
• Help to Buy ISA – with these tax-free savings accounts, the Government added an extra £50 to every £200 the holder saved. (maximum £3,000). You can no longer open a Help to Buy ISA – GOV.UK. However, those who already hold one have until November 2029 to use it
• Homebuyer ISA – this new vehicle, set to launch in 2028 as a replacement for the Lifetime ISA will only be for first-time buyers. We don’t know a huge amount it yet, but it’s worth keeping it on your radar

FAQs about getting mortgages on a low income

Can I get a mortgage with a £20,000 salary?

In theory, you could get approved for a mortgage – and might be able to borrow around £80,000-£90,000 (based on 4 times or 4.5 times income).

Just note that approval depends on a lot more than just your earnings. It will also depend on things such as the size of your deposit, along with your debts, outgoings and credit history.

Is there a minimum salary for a mortgage?

No. There’s no ‘stipulated’ minimum, but what you need to be mindful of, (as above), is that lenders assess affordability based on income, outgoings, debts and credit history. Some lenders may consider low incomes, but you could find that borrowing limits – and the choice of deals available to you – is restricted. 

Can I get a mortgage with benefits?

In some cases, yes. Certain lenders may accept benefits as part of your income. You will still be required to pass affordability checks, so getting approved for a mortgage is not a given. Also note that the choice of products and rates may be more limited.

Can I get a mortgage with a low income and bad credit?

Theoretically, yes – but it’s challenging. Your best bet is to speak to a specialist lender willing to consider borrowers in your position. You’ll probably need a larger deposit – and will have to pass strict affordability checks – to get approved for a deal. You could face higher rates. A broker could be key in helping you find suitable options for your needs.

What’s the best mortgage for low-income buyers?

There is no ‘one-size-fits-all’ best deal for low-income buyers. Your best bet is likely to be a Government-backed scheme such as Shared Ownership, a 95% mortgage, or a deal from a specialist lender. With these options, upfront costs are typically lower, making them more accessible. Just be aware that strict eligibility and affordability checks will still apply.

Compare mortgages for low-income buyers

Here’s the key things you need to do next:

• Contact a mortgage broker. We have partnered with Tembo to help you on this journey. Find out more by visiting our affordability calculator
• While you’re there, have a play around on the calculator tool to find out the impact of different rates on monthly payments
• To find out more about mortgage rates – and what might be available to you – head here. Just input a few basic details to get going

Important

*Your home may be repossessed if you do not keep up repayments on your mortgage. Be Clever With Your Cash may receive a payment from Tembo Money if you complete a mortgage through the link provided. This will not affect the amount you pay for the service.

This broker fee discount of up to £499 is applicable for standard mortgages and remortgages only, more complex cases including guarantor, buy-to-let, adverse credit, and equity transfer may be liable for a fee. The fee you are required to pay will be clearly outlined by your adviser prior to an application being submitted on your behalf. The offer does not cover any other potential fees that may arise during the mortgage process.

Tembo Money Limited (12631312) is a company registered in England and Wales with its registered office at 18 Crucifix Lane, London, SE1 3JW. Tembo is authorised and regulated by the Financial Conduct Authority under the registration number 952652. Tembo Money was awarded Best Mortgage Broker at the British bank awards in 2022, 2023, 2024 and 2025. Rates are not guaranteed and may change by the time you come to apply. Eligibility criteria may vary by lender.

Our calculator is only an estimate of how much you are able to borrow and does not constitute mortgage advice