July 22nd, 2025
If you’re self-employed, contracting or freelancing, figuring out how much mortgage you can afford isn’t always straightforward. You might even be asking yourself: how much mortgage can I afford depending on my salary?
Unlike traditional employees, your income might fluctuate or be structured differently – but that doesn’t mean homeownership is out of reach. Most UK lenders use a basic income multiple model – typically between 4 and 4.5 times your annual income – to estimate how much you can borrow. Some specialist lenders may even offer more, especially if you’re working in a high-demand industry or have long-term contracts in place.
Let’s break down what mortgage affordability might look like at different income levels – and how you can stretch those numbers in your favour.
Salary £40,000
Estimated borrowing range: £160,000–£180,000
Potential property value (with 10% deposit): £178,000–£200,000
For contractors earning £40k annually, borrowing at 4.5× income is often possible with strong evidence of steady contracts. If your income varies month-to-month, lenders may average it over a 12–24-month period.
Tip: Show upcoming or recently renewed contracts, add any dividends you draw, and keep your expenses lean to boost your affordability.
Salary £60,000
Estimated borrowing range: £240,000–£270,000
Potential property value (with 10% deposit): £267,000–£300,000
At this level, you’re in a good position to access a broader range of lenders. Having a 15%+ deposit can also open doors to better interest rates.
Tip: A strong credit history and reliable contract work (especially in sectors like IT, finance or engineering) may let you push closer to a 5× salary multiple.
Salary £100,000
This level of income can support a premium property purchase – or even a small buy-to-let portfolio, depending on your circumstances. But lenders will still want clarity on your income structure.
Estimated borrowing range: £400,000–£450,000
Potential property value (with 10% deposit): £444,000–£500,000
Tip: Keeping your accounts clean, providing contracts for at least 6–12 months ahead, and working with a specialist broker can make a big difference here.
It’s Not Just About Salary
Income multiples are only part of the picture. Lenders also assess:
- Your day rate or average monthly income
- Length and continuity of contracts
- Time spent contracting or self-employed
- Credit score and existing financial commitments
Even if your income is irregular, you can still be mortgage-ready. At CMME, we work with lenders who understand how contracting works – and we’ll help you prepare the documents and narrative that best reflect your financial position.
Sources & Calculations
These are figures based on income multiples typical in the UK (Revolution Brokers) and 4–4.5x ratios widely referenced online: integraf.co.uk.
Ready to See What You Could Afford?
Use our Contractor Mortgage Calculator to get a rough estimate, then speak to one of our mortgage specialists to explore your personalised options. We’ll help you make the most of your income: