Most lenders will determine how much you can borrow using a multiple of your income. They do this to see if you can comfortably afford your repayments and other expenses. For example, some lenders might provide loans at 4.5x your annual income, although some lenders may be prepared to do 5x, and in some circumstances a few might consider up to 6x.

So, to qualify for a £300,000 mortgage, you typically would need to earn around £67,000 a year (either individually or collectively) based on 4.5x your income, £60k on 5x income, and £50k on 6x income. However, some mortgage providers assess applications on a case-by-case basis to make their decision. While income is important, it is worth noting that the majority of lenders will factor in what percentage of your salary goes on other bills, in order to assess affordability.

Lenders will also work out your affordability by assessing your debt-to-income ratio. To do this they will look at your monthly income minus any outgoings. The lower your debt-to-income the better as it shows lenders that you have more disposable income to put towards mortgage payments. These expenses might include:

Council tax
Utility bills including gas, water, and electricity
TV packages and broadband
Car insurance
Credit cards & Loans
Car finance
Home and contents insurance
Childcare costs