Income needed to buy a house
Start from the house you want rather than the salary you have. This works out what you would need to earn to get there.
How this is calculated
The mortgage needed is the price less your deposit. Divide that by the lender income multiple and you have the income required before commitments.
Existing monthly commitments are annualised and added on top, because lenders take them off your income before applying the multiple. A £300 a month car finance agreement adds £3,600 to the salary you need.
If you are buying with someone else this is the combined figure. Two people earning half each reach the same total.
A real lender also stress tests affordability at a higher rate than the one you are offered, so treat this as the minimum rather than a guarantee.
Rates used · 2026/27
| Typical multiple | 4.0x to 4.5x |
| Higher-income multiple | up to 5.5x |
| Best rates from | 25% deposit |
| Commitments | annualised and added to the income needed |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
A £300,000 house with a £30,000 deposit needs a £270,000 mortgage. At 4.5 times income that requires £60,000 of income, or £30,000 each for two buyers. Add £300 a month of car finance and the income needed rises to £63,600.
Common questions
Why does a car loan matter so much?
Because lenders deduct it before applying the multiple. At 4.5x, £300 a month of car finance costs you around £16,000 of borrowing power, which is far more than the payment suggests.
Is a bigger deposit or a higher salary better?
A larger deposit reduces the borrowing directly, so it lowers the income needed pound for pound. It also improves the rates available once you cross 90%, 85% or 75% loan to value.
Can we combine two incomes?
Yes. Lenders assess joint applications on combined income, so the figure here can be split between you however it falls.
Will a lender definitely offer this?
No. Multiples vary by lender, profession and loan to value, and every lender runs its own affordability model on top. This is a planning figure, not an offer.