£350,000 Mortgages

There are lots of properties across the country currently priced at over £350,000. If one of these has caught your eye and you think you might require a mortgage of almost this amount, you’ll need to check you can afford it, both in terms of the repayments and the deposit required.

This guide will help you understand both of these components, giving you a clearer answer about whether you can feasibly repay a mortgage of around £350,000 and, if so, how to obtain one.

What do you need to qualify for a £350,000 mortgage?

First and foremost, you need to establish whether you earn enough to get a mortgage of this amount and have enough deposit saved up. Checking this with a broker prior to applying will save you time and prevent any possible rejections that could count against you later.

Try our mortgage affordability calculator below to find out whether your income stretches far enough based on the standard income multiples most lenders use to assess affordability.

How much deposit will you need?

Lenders typically seek 10% of the property’s value as a mortgage deposit.

With a property worth £350,000, you’d therefore be looking to put down a minimum of £35,000. If you can afford to contribute a little more, that would reduce your monthly repayments whilst also giving you more lenders to choose from – lenders don’t like high levels of risk, and a big deposit removes some of that.

A few lenders are willing to offer a loan with a 5% deposit, but these aren’t as common. A broker can source a few if you want to explore this option.

Income requirements

There’s no magic number here as a lender will consider numerous factors to determine whether you can afford £350,000 as a loan, but, as an indicator, most lenders are willing to lend 4.5 times a salary. With that in mind, for a £350,000 mortgage, your annual salary would need to be around £78,000. A bigger deposit could reduce that closer to £70,000.

While that is a relatively large amount, especially considering the average salary in the UK is currently £25,971, it can be spread across two people’s incomes, making it more manageable.

Some lenders are also willing to lend above the 4.5 figure and even 5 times your annual salary or 6 times in certain circumstances, such as when the borrower puts down a bigger deposit or works in a particular profession, such as a doctor or lawyer. A broker would be able to share a list of lenders potentially willing to loan above that amount.

Example calculations

The table below breaks down what 4.5, 5 and 6 times a salary could get you on a mortgage based on a range of different salaries.

An expert can give you a more specific idea of the amount you could expect a lender to approve based on your salary and outgoings, as well as eligibility factors that could indirectly impact your borrowing capacity. They could also share any government schemes you might be eligible for.

How much your repayments could be

What a £350,000 mortgage will mean for your bank account each month will depend on the interest rate and mortgage term agreed. Rates usually range between 1.5% and 4.5%. A bigger deposit might offset a higher rate, while bad credit could see that interest rate rise.

Mortgage terms are typically 25 years, but they can be altered in some cases. For example, Halifax often offers a 35-year term, while Accord Mortgages is happy to lend up to 40 years.

Try our mortgage repayments calculator below to get a clear idea of how your monthly payments could look.

Example repayment calculations

The table below estimates the monthly payment for a £350,000 repayment mortgage, depending on various rates and terms.

Interest only as an option

When repaying your loan, you can opt for capital repayment—this means your monthly repayment goes toward the interest rate and the loan, or interest-only, where the monthly repayment only pays off the interest element.

Many lenders offer this option as long as you can prove you have a viable way of paying off the whole £350,000 at the end of the term. You’ll also likely have to put up a larger deposit, meaning your monthly repayments will be smaller.

Interest-only mortgages are usually the more popular option for buy-to-let properties. In these mortgages, the interest repayment is offset by rental income, and the capital can be repaid using profits from the sale of the investment property.

A broker can advise on the term length you should choose and how to obtain a more favourable rate.

How a broker can help you get a mortgage for this amount

A few quick calculations can give you a rough idea of what you can afford as a mortgage, but when it comes to something as big as purchasing a home, it’s best to avoid any speculation. This is where a broker can help. A vital port of call before applying to a lender, they can assess your individual situation and:

1. Confirm that you can afford a £350,000 mortgage before applying to a lender, limiting the chance of getting rejected.
2. Advise on accessing lower monthly repayments, making your loan go further.
3. Compare lenders across the market, including ones who only liaise with brokers, and find you one willing to offer more than 4.5 times your salary and more amenable rates.

How lenders will calculate affordability

While you might do some calculations and determine you can afford a mortgage of £350,000, a lender might have different ideas. They have their own affordability criteria and will look at your salary and a range of other indicators to decide how much they think you can afford to borrow. These include:

• More details on your income: Are you self-employed? A business owner? How long have you been in the role if you’re an employee? Do you get bonuses? These are questions lenders ask to determine how dependable your salary is. None necessarily means you can’t take out a loan of £350,000, but various lenders will view such circumstances differently. They may require reassurances in another form if they view you as a risky borrower.
• Your spending habits: If you earn £40,000 a year but spend most of that on paying back debt, gym memberships, shopping trips and holidays, then this will be considered. Lenders want to know you’re reliable, and any spending they consider extravagant will cause concern about your ability to meet ongoing monthly repayments. Before applying for any mortgage loan, it’s worth capping significant spending where possible.
• Any debt you may have: Paying back loans of any kind will feed into how much you’ve got left at the end of the month to pay a mortgage, so a lender will want to know that, regardless of any outstanding debt, you can still meet the repayments on the £350,000 loan.

Eligibility factors

The below can indirectly affect your borrowing potential by determining the number of deals and lenders you can access.

• Your credit history: A good credit history will likely result in a lower interest rate, affecting how much of your monthly repayments go toward paying off the £350,000 mortgage. If you have a bad credit history, there are some things you could do to remedy this before applying, but a broker can also indicate that lenders are still open to lending to those with bad credit.
• Age: The older you are, the fewer lenders are generally available, although you could still have options as an older borrower, provided you can prove that you’ll be able to pay your mortgage in later life.
• Profession: Some lenders reserve higher income multiples for people in certain prestigious professions, such as dentists and lawyers.

Get matched with a mortgage expert for your £350,000 mortgage

How much would a £350,000 mortgage cost in your specific circumstances? Is your salary enough to qualify? What would repayments look like? These are all answers an expert broker specialising in this price range of mortgages would be able to answer in more detail.

Offering tailored advice, they can help you find and apply to a lender with rates and terms best suited to your specific situation, whether you’re a first-time buyer or an existing homeowner.

Call 0330 822 0505 or fill out an enquiry form to be matched with a broker who can provide the expert advice you need. An initial consultation is free, but advice is available from the point of enquiry to the point of sale if you require it.