It is possible to get a mortgage if your income is low. A “low” income is relative, but could generally be defined as less than the national average. One of the key methods of checking your mortgage eligibility is to apply for an Agreement in Principle.
How much you earn will affect how much you can borrow from a lender. This is because the lender will have to be sure you can make monthly repayments.
That said, income is not the only factor a lender will look at when deciding to offer you a mortgage. For example, if you have a big deposit, but low income, perhaps from inheritance, you could still be eligible for a mortgage.
Buying with another person can also help you to afford a mortgage. This is because a lender will look at your joint income to decide how much you can borrow.
Lenders will also look at other factors, such as:
- Deposit size
- Extra sources of income
- Savings
- Credit history
- Living costs
- Type of home you want to buy
In short, all that matters is that you can afford the repayments. If you can prove that you will be able to repay your mortgage long term, your income should not stop you from getting a mortgage.
