Yes, you can. Some high street lenders have no minimum income requirements, meaning you can qualify for a mortgage no matter how much money you have coming in each month.
Having a lower income will reduce your borrowing power though. So be prepared that you may not be able to borrow as much as you want or need to without some form of assistance. This could be through the use of a home ownership scheme, or from helpful relatives.
An important thing to note is that income isn’t always restricted to earnings. Most lenders will gladly accept other forms of income, such as pensions, child maintenance payments and benefits.
In most circumstances, 4.5 times your household income is the average amount you can expect to borrow. So if your income is £20,000 a year and the lender uses an income multiplier limit of 4.49, your loan would be in the region of £89,800.
People in certain professions may be able to borrow at a higher multiple of their income.
Lenders look at your affordability in more detail than simply how much you earn, however, so not every penny will necessarily go towards your loan calculation.
They will look at your outgoings to build a full financial picture, such as:
Regular bills
Financial responsibilities
Your credit history
You can also use our mortgage affordability calculator to see how much you could borrow.
Not all lenders are willing to consider all forms of income types, but there are certainly some willing to consider most or all of the below examples:
Salary from employment or self-employed income
Overtime, bonuses, commission and earnings from a second job, however, some lenders will only count 25-50% of this type of income
Most benefits, so long as they are regular and ongoing
Child maintenance payments
State and private pensions
Some investments
Mortgage subsidy income payment protection
Being on a low income won’t necessarily change which documents you'll need to provide in support of your mortgage. All lenders will want clear evidence of any earnings, benefits and other income that you have coming in each month. This could be in the form of any or all of the following documents:
Payslips for a period of at least three months if you’re employed
Evidence of bonuses, overtime payments or commission, if not included on your payslip
If you’re self-employed, you’ll need to show two to three years of accounts and tax calculations
Bank statements going back three to 26 months are sometimes required in addition to payslips/tax calculations
If you receive benefits, a benefit award letter for each separate type will be needed from the department for work and pensions (DWP)
A copy of a court-ordered maintenance agreement or a CSA assessment for child maintenance payments
Your latest annual pension statement or a P60 for pension income
Most applicants need a minimum deposit of 5% of the total value of the property for a 95% LTV mortgage. Lenders offer better interest rates and potentially larger loans to those with a bigger deposit, so saving as much as possible will certainly benefit those on a low income.
That said, saving a deposit on a low income can be difficult. There are a few options available if you’re unable to save much:
Guarantor mortgages – allow you to borrow up to 100% of the cost of the property, assuming your guarantor is able to pass the lender’s affordability checks
A gifted deposit – you can accept a gifted deposit from most family members, so long as you can provide evidence of its origin
A Lifetime ISA – if you’re under 40, this government scheme tops up your own savings by an additional 25% each year, helping you grow them more quickly
Yes, most lenders allow people to supplement their mortgage income with some forms of benefits. But it’s less straightforward if you rely on benefits exclusively.
A number of the larger high street lenders such as Halifax, Nationwide and TSB will consider applicants that receive benefits, so long as ongoing payments can be proven.
Not all lenders accept all types of benefits, so it’s important to opt for a lender that is willing to consider the type of benefits that you receive.
You may be able to use some or all of the following benefit types in support of your mortgage, depending on the lender:
Attendance allowance
Carers allowance
Child benefit
Child tax credit
Disability living allowance
Disability income support
Employment and support allowance
Industrial Injuries Disablement Benefit
Pension credit
Personal Independence Payment
State widows pension
Working tax credit
Universal credit
The shared ownership scheme helps those unable to borrow enough to buy a home outright, to buy a share in a home instead. This can be as little as 10% to as much as 75% of the home initially.
Ownership is increased through a process known as staircasing, which allows you to buy more of the property in chunks as small as 1% extra at a time. Some terms restrict you from owning the property 100%, so it’s best to seek advice from a qualified broker if this is your aim.
The first homes scheme was introduced in 2022 and provides first-time buyers with the opportunity to buy a home at a significant discount on the market value (30-50%).
All first time home buyers with a household income below £80,000 (£90,000 in Greater London) are eligible. Key workers and those with personal links to the geographical area of homes within the scheme will be prioritised.
The home will need to have been purpose built for the scheme, and the idea is that it is only sold on to other people eligible for the scheme, keeping a pool of affordable homes available to first-time buyers indefinitely.
Right to Buy
The Right to Buy scheme offers council tenants in England a significant discount to help them buy their rented home. The level of discount is based on the current market value of your home, minus 35-70%, depending on how long you’ve been a tenant.
Right to Acquire
The right to acquire scheme is similar to the Right to Buy, however, it’s exclusively for housing association tenants in England. The discount offered in this case is set at between £9,000 - £16,000, depending on the value of your rented home.
The Home Builders Federation introduced the first non-government led home ownership scheme in 2022, which is known as the Deposit Unlock scheme.
This provides the opportunity for anyone (not necessarily a first-time buyer) to purchase a new build home with just a 5% deposit. To date, a number of home building companies are participating in the scheme, and a handful of lenders have signed up to it.
The Help to Buy mortgages scheme is no longer open for residents in England, Scotland and Northern Ireland. However the scheme is still available in Wales, and you can find further details here.
The shared ownership scheme helps those unable to borrow enough to buy a home outright, to buy a share in a home instead. This can be as little as 10% to as much as 75% of the home initially.
Ownership is increased through a process known as staircasing, which allows you to buy more of the property in chunks as small as 1% extra at a time. Some terms restrict you from owning the property 100%, so it’s best to seek advice from a qualified broker if this is your aim.
The first homes scheme was introduced in 2022 and provides first-time buyers with the opportunity to buy a home at a significant discount on the market value (30-50%).
All first time home buyers with a household income below £80,000 (£90,000 in Greater London) are eligible. Key workers and those with personal links to the geographical area of homes within the scheme will be prioritised.
The home will need to have been purpose built for the scheme, and the idea is that it is only sold on to other people eligible for the scheme, keeping a pool of affordable homes available to first-time buyers indefinitely.
Right to Buy
The Right to Buy scheme offers council tenants in England a significant discount to help them buy their rented home. The level of discount is based on the current market value of your home, minus 35-70%, depending on how long you’ve been a tenant.
Right to Acquire
The right to acquire scheme is similar to the Right to Buy, however, it’s exclusively for housing association tenants in England. The discount offered in this case is set at between £9,000 - £16,000, depending on the value of your rented home.
The Home Builders Federation introduced the first non-government led home ownership scheme in 2022, which is known as the Deposit Unlock scheme.
This provides the opportunity for anyone (not necessarily a first-time buyer) to purchase a new build home with just a 5% deposit. To date, a number of home building companies are participating in the scheme, and a handful of lenders have signed up to it.
The Help to Buy mortgages scheme is no longer open for residents in England, Scotland and Northern Ireland. However the scheme is still available in Wales, and you can find further details here.
Low income is a relative term, so perhaps you’re wondering whether you are on a low income or not. As it’s possible to get a mortgage with a low-income, labelling yourself is not necessary. But according to the GOV.UK, houses in the UK on low income live on less than 60% of the median income.
It depends on how much you need to borrow. The minimum amount of income will need to be enough to be able to afford the loan repayments, no matter how much you borrow.
Some lenders have a minimum income requirement, which tends to be around £20-£25k, however, the majority of lenders are more concerned with whether you can afford the loan than the size of your salary.
Yes, if you’re able to comfortably afford loan repayments with income from other sources, then most lenders will consider your application, depending on your individual circumstances.
That said, the majority of lenders will prefer that you are working if you can, unless you have very substantial savings or assets.
Lenders will only ever offer a mortgage that they believe you can afford, and this will be considered and discussed with you as part of their affordability checks.
A good credit record will always improve your chances of being offered a mortgage, and this is even more relevant if you’re on a low income.
There are specialist bad credit lenders that are able to help people that have had certain credit issues in the past, such as CCJs and even IVAs in some circumstances. However, you will typically need to see a broker to access this type of lender. Lenders also charge higher interest rates in these circumstances.
Yes, in fact, your income is of less relevance with buy-to-let mortgages than it would be if you were buying a standard residential home. This is because how much you can borrow is based largely on how much the rental property will earn.
Many lenders do not have a minimum income requirement and borrowing is not typically calculated using your income, although some will prefer that you do have some form of income as a backup.
It will be more difficult to get a mortgage in these circumstances, but not necessarily impossible. There are bad credit lenders that will look at all sorts of circumstances, but it’s best to speak to a mortgage broker with plenty of experience in this area in order to achieve the best outcome.
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