Borrowing
What house can I afford on a £40,000 salary?
On £40,000 a year, many lenders would lend around £180,000, which is 4.5 times your income. With a 5% deposit that reaches a home of about £189,000, or about £200,000 with 10% down.
| Deposit | Home | Monthly | Cash on day one |
|---|---|---|---|
| 5%£9,450 | £189,000 | £910 | £12,600 |
| 10%£20,000 | £200,000 | £912 | £23,200 |
| 15%£31,650 | £211,000 | £909 | £34,900 |
| 20%£45,000 | £225,000 | £912 | £48,300 |
Repayment mortgage at 4.5% over 30 years. Day one cash is the deposit plus fees, and Stamp Duty in England for a first-time buyer. Try your own rate and term
Against your take-home pay
£40,000 is about £2,693 a month after tax and National Insurance in England. The £912 mortgage with a 10% deposit would be about 34% of that, before bills and council tax.
Common questions
- How much can I borrow on £40,000?
- Many lenders lend around 4.5 times income, so about £180,000. Some go up to 5 times, about £200,000, for some buyers. Debts and other payments bring it down. Only a lender can say for sure.
- What would the mortgage cost a month?
- With a 10% deposit on about £200,000, a £180,000 repayment mortgage at 4.5% over 30 years is about £912 a month, before bills and council tax.
- How much cash do I need on day one?
- About £23,200 at that price with a 10% deposit: the £20,000 deposit plus legal fees, searches, a survey and moving. First-time buyers in England pay no Stamp Duty up to £300,000.
- What if I'm buying with someone?
- Lenders add your incomes together. Two people on £40,000 each is £80,000 between you, which reaches about £400,000 with a 10% deposit.
A guide, not a promise anyone will lend. Debts, other payments and your credit history change what a lender offers. Checked 2026-10-04.