£450,000 Mortgages

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 lenders’ eligibility criteria you meet

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.

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…

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.

Also bear in mind that lenders will factor your fixed outgoings into their affordability assessment. This can include existing credit commitments and debts. Having a significant amount of money going towards either of these things may affect your maximum borrowing.

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

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.

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:

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 history certainly doesn’t mean a dead-end, it could mean that lenders will only offer you a mortgage with a higher interest rate, bumping up your monthly repayments.

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.

Age

This can have an indirect effect on your monthly repayments by limiting the term lengths you qualify for. If the mortgage term is due to run into your retirement years, so lenders might think twice about offering you a long term, especially if you cannot prove how you will be making your mortgage payments in retirement.

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.