When you apply for a mortgage, the lender checks you can afford it before they accept you. They make sure you can afford the monthly payments by looking at:
How much you spend
However, you may still be able to get accepted. Here is how to get a mortgage on a low income:
Compare mortgages that may accept you
This comparison includes mortgages you could get even if your annual income is less than £15,000.
If you need help finding the best mortgage, you could either:
Improve your credit record
Your credit record contains details of your current financial situation and what money you have borrowed in the past. Bad credit can put lenders off but you may still be able to get a mortgage.
You could make it more likely you get accepted for a mortgage and borrow more if you make your credit record look more attractive to lenders.
Cut your outgoings
Reduce how much you spend each month by budgeting carefully to increase how much you can afford towards a mortgage.
Here is how to work out what you spend and how to save money on it.
Save up a larger deposit
If you have money in savings or already own a house, you can use this as a deposit towards your new home. This is the amount you pay towards the purchase price yourself.
If you have a larger deposit you will need a smaller mortgage, which is less risky for the lender.
Find mortgage schemes that can help
If a family member or friend could make your payments if you missed them, they could help you get a mortgage. They would need to be named on it as your guarantor and allow either their home or savings to be used by the lender as security.
There are also several schemes that could help you buy a house, including:
The Help to Buy scheme
The Right to Buy scheme, which lets you buy your a council house
Buy with someone else
If you buy a house with someone else you can get a joint mortgage. The lender looks at the combined salary of you and the other person named on the mortgage.
You could buy with a partner or one or more family members or friends.
Check you can afford a mortgage
Missing payments on a mortgage can be expensive, damage your credit record and leave you in debt. Make sure you do not borrow too much by working out if you can afford a mortgage.
Low income mortgage FAQs
Can I get a mortgage through a broker?
Yes, you could contact a mortgage broker for help choosing one that suits your finances.
Can I afford a mortgage?
This depends on how much you earn, how much money you have saved, what you owe and your financial commitments. Here is how to check.
Should I buy or rent a house?
This depends on your financial and personal circumstances. Here are the pros and cons of each and how to decide.
How can I save up a deposit?
You can use existing savings, a gift or an inheritance, borrow money from family or save up each month. Here is how.
Will my credit record matter?
Yes, this helps lenders decide whether to offer you a mortgage and how much to let you borrow. how to improve your credit record.
About our mortgage comparison
Who do we include in this comparison?
How do we make money from our comparison?
We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.