Updated: May 17, 2022

£450,000 Mortgages

If you want a £450,000 mortgage, how much do you need to earn and what will you pay each month? Read on to find out everything you need to know.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: May 17, 2022

If you’ve got your eye on a property that involves getting a £450,000 mortgage, you’ll need to know whether you’d be eligible to borrow a loan of this size and, crucially, whether you’d be able to afford the repayments.

There’s a number of factors that could influence your eligibility, so here we’ll outline how much it would cost, what will determine the monthly repayments and where to look for any guidance you may need.

Can you get a mortgage for £450,000?

Yes, there are lots of lenders available for this loan amount but the kind of property you can get with a £450k mortgage varies hugely – from one-bed flats in a city to a sprawling country house with land somewhere more rural. Regardless of the type of home you’re looking to buy (and where), the intricacies of getting a mortgage remain the same and are generally influenced by:

  • The size of your earnings
  • Amount of deposit you have
  • Which lender you choose to approach

As you’ll see further on in this guide there are other variables involved too. This is why working with a professional advisor is always a good idea to help you get a clearer understanding and produce a stronger mortgage application.

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How much would you need to earn?

What you’ll need to earn for a £450,000 mortgage depends on the income multiple a lender is willing to go to. It is common for banks to lend 4 times or 4.5 times your annual salary, which would mean you will need to earn between £100,000-£112,500 a year.

Increasingly lenders are willing to stretch to 5 times or even 6 times income multiples, which might make it more achievable, although do note that these are harder to come by and the eligibility will be stricter. Again, this is where a broker can be crucial to getting you a favourable deal. If it is, it means you might be able to get a £450k mortgage even if you earn £90,000 or £75,000.

The table below puts these income multiples into perspective…

Income per year 4x income 4.5x income 5x income 6x income
£75,000 £300,000 £337,500 £375,000 £450,000
£85,000 £340,000 £382,000 £425,000 £510,000
£95,000 £380,000 £427,500 £475,000 £570,000
£105,000 £420,000 £472,000 £525,000 £630,000

This can be a joint household income too, so if two of you earn at least £37,500, which is not so far off the national average, it might be possible that you’ll be accepted for a loan of this size.

Use our mortgage affordability calculator below to see how this may work out, based on your own annual earnings:

calculator icon

Mortgage Affordability Calculator

Our affordability calculator can tell you how much you can potentially borrow from a mortgage lender. Simply enter your total household income below and our calculator will do the rest.

Input full salaries for all applicants
£

You could borrow up to 

Most lenders would consider letting you borrow

This is based on 4.5 times your household income, the standard calculation used by the majority of mortgage providers. To borrow more than this, you will need to use a mortgage broker to access specialist lenders.

Some lenders would consider letting you borrow

This is based on 5 times your household income, a salary multiple you might struggle to qualify for without the help of a broker. This income multiple is not widely available to customers who are applying directly with a lender.

A minority of lenders would consider letting you borrow

This is based on 6 times your household income, a salary multiple you will struggle to get without a broker. Six-times salary mortgages are usually only available under very specific circumstances.

Get Started with an expert broker to find out exactly how much you could borrow.

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What will the monthly payments be?

This will depend on the term length and the interest rate you get.

Here is an estimate based on a repayment mortgage with a 3.5% interest rate and a range of different loan terms to give you an indication of what the repayments could be.

Mortgage 25 year term 30 year term 35 year term
£430,000 £2,153 £1,932 £1,778
£450,000 £2,254 £2,022 £1,861
£470,000 £2,354 £2,111 £1,943
£500,000 £2,504 £2,246 £2,067

Alternatively, you can use our repayment calculator below to input a variety of different amounts on or around the £450,000 you’re looking to borrow:

calculator icon

Mortgage Repayment Calculator

Our mortgage repayment calculator can tell you how much your mortgage will cost you each month and overall. Enter the amount you’re borrowing, the term length and interest rate, and our calculator will do the rest.


Enter the amount you're borrowing
£
2.5% is an average figure but the rate you get may vary
%
25 years is average, but most lenders offer longer and shorter terms
years

Monthly Repayments:

Interest Only:

Total amount paid at end of term:

Get started with an expert broker to find out how much they could help you save on your mortgage repayments.

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How a broker can help you secure a £450k mortgage

Professional advisors are a gateway between you and all of the lenders out there. As well as understanding the marketplace and sharing their expertise, they also act as a sounding board offering advice, support and expertise in pulling together a strong application.

Reliable and experienced mortgage brokers, like the ones we work with, make the difference to securing a successful mortgage deal that suits you perfectly, with preferable rates and terms.

If you get in touch we’ll make sure an advisor with experience arranging mortgages of this size contacts you straight away.

What other factors affect monthly payments?

The following components of a mortgage can make huge variations in both your application success and the deal you end up with:

Credit history

Banks will always look at your credit file and take your financial background and expenditure into consideration, no matter what your current earnings are. While bad credit scores certainly don’t mean a dead-end, they could pose obstacles in the application process, which you should be ready for.

It’s always a good idea to download your credit reports beforehand so you can assess your record before a lender sees it and amend any information on there that is either incorrect or out of date.

The length of your loan

The shorter your mortgage term, the quicker you will reach the end of your loan. Longer terms bring down the monthly costs. What length you go for depends on your own personal circumstance. These days lenders set maximum terms relatively high – up to 35 or 40 years. Some, like LiveMore Capital, even go up to 50-year loans.

The type of mortgage

This factor affects monthly payments greatly, so understanding and seeking advice on your own circumstance is crucial in finding out what to expect. Will you be on a repayment or interest-only basis, fixed rate or tracker product, a retirement mortgage, buy-to-let or residential? They all result in very different sums.

Type of property

Even the kind of property you wish you buy will affect monthly payments, with new builds, flats, bungalows and others all coming with their own criteria.

Get matched with the right mortgage broker

Even if you’re at the beginning of your property-buying stage and are still wondering what you need to earn to buy a £450,000 home, the right broker can help with your options and give you the advice you need.

The professional mortgage brokers we work with are happy to help, no matter what stage you’re at. They provide honest and reliable support to get you through the application process and where you want to be, maintaining a five-star service and access to the entire marketplace.

Call us on 0808 189 0463 or make an enquiry online for a free, no-obligation initial consultation to find out more.

FAQs

How much deposit do I need for a £450K house?

You would usually need at least £45,000 in deposit funds, although some lenders will be happy with £22,500. This would usually be the minimum amount, but bear in mind that putting down extra can increase your chances of securing a favourable interest rate.

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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