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With a total monthly payment of $500 every month for a loan term of 20 years and an interest rate of 4%, you can get a **mortgage worth $72,553**. Of course, this value might vary slightly, depending on the percentages of property tax and home insurance.

For £500 a month you can get a **host of residential mortgages or buy to let mortgages**. £500 a month will allow you to get a mortgage of £139,000 at a mortgage rate of 1.8% APR with a 30-year mortgage term but this is all subject to your mortgage affordability.

You can use our mortgage calculator to get a rough idea of how much you may be eligible for. As an example, for a £600 a month mortgage paid back over 25 years with an interest rate of 2.5%, the approximate amount you're likely to be able to borrow is around **£135,000**.

On a $200,000, 30-year mortgage with a 4% fixed interest rate, your monthly payment would come out to **$954.83** — not including taxes or insurance. But these can vary greatly depending on your insurance policy, loan type, down payment size, and more. Credible is here to help with your pre-approval.

- £132,000 – 60% loan to value, 2 year fixed, over a 35 year term at 1.39%
- £59,400 – 90% loan to value, 2 year fixed, over a 15 year term at 2.64%
- £90,000 – 90% LTV, 2 year fixed rate, over a 24 year term, at 2.2%

This means to secure a £500,000 mortgage, you would need an income of **between £111,111 and £125,000**, singularly for a sole mortgage or collectively for a joint mortgage. However, some lenders are willing to lend at higher income multiples, with some going as high as 5 or 6 times.

The Income Needed To Qualify for A $500k Mortgage

A good rule of thumb is that the maximum cost of your house should be no more than 2.5 to 3 times your total annual income. This means that if you wanted to purchase a $500K home or qualify for a $500K mortgage, your minimum salary should fall **between $165K and $200K**.

A good rule of thumb is that your total mortgage should be **no more than 28% of your pre-tax monthly income**. You can find this by multiplying your income by 28, then dividing that by 100.

What income is required for a 400k mortgage? To afford a $400,000 house, borrowers need $55,600 in cash to put 10 percent down. With a 30-year mortgage, your monthly income should be **at least $8200** and your monthly payments on existing debt should not exceed $981.

Monthly payments on a £100,000 mortgage

At a 4% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total **£477.42 a month**, while a 15-year might cost £739.69 a month. Note that your monthly mortgage payments will vary depending on your interest rate, taxes and PMI, among related fees.

How much do I need to earn to get a £200,000 mortgage? In most cases, mortgage providers cap what they're willing to lend you at **4.5x your annual salary**. In some situations this will exceed to 5x your income and a minority to 6x - in exceptional circumstances.

TL;DR: You should try to spend **no more than 35% of your gross (pre-tax) income** on your mortgage. A more conservative recommendation is no more than 25% of your gross income.

You will usually need to have a deposit **of at least 5% of the value of the home you want** to buy. You can get a mortgage without any deposit, but that is a risky and unorthodox method.

A person who makes $50,000 a year might be able to afford a house worth anywhere **from $180,000 to nearly $300,000**. That's because salary isn't the only variable that determines your home buying budget. You also have to consider your credit score, current debts, mortgage rates, and many other factors.

How Much Income Do I Need for a 550k Mortgage? You need to make **$169,193 a year** to afford a 550k mortgage. ... In your case, your monthly income should be about $14,099. The monthly payment on a 550k mortgage is $3,384.

You need to make **$138,431 a year** to afford a 450k mortgage. We base the income you need on a 450k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about $11,536. The monthly payment on a 450k mortgage is $2,769.

Another rule to adhere to when determining how much home you can afford is that your **monthly mortgage payment should not surpass 28% of your monthly income**. For example, if you make $100,000 per year, your monthly mortgage payment should not exceed $2,333.

Most cap the amount you can borrow at 4x - 4.5x your annual income. For a £350,000 mortgage, this would mean that you would need to be earning a minimum of **£87,500 - £77,778 a year**. If you're applying for a joint mortgage, this will be the sum of your combined incomes.

In almost all cases, you will need a deposit of **at least 5% of the property price**. But the average house deposit for a first time buyer in the UK is around 15%. The bigger the deposit, the lower your mortgage interest rate and the smaller your monthly repayments.

If you were to use the 28% rule, you could afford a monthly mortgage payment of $700 a month on a yearly income of $30,000. Another guideline to follow is your home should **cost no more than 2.5 to 3 times your yearly salary**, which means if you make $30,000 a year, your maximum budget should be $90,000.

A **net monthly salary between £2,500 and £3,000** is considered a decent salary. This corresponds to the gross annual salary above £40,000. Everyone getting between £3,300 and £4,000 gross per month is a good earner.