£175,000 salary with £150,000 deposit: Mortgage you can afford 2026/27
On a £175,000 UK gross salary with a £150,000 cash deposit, the standard 4.5x income multiplier supports a mortgage of £787,500 and a target property price up to £937,500. Monthly repayment at 4.5% over 25 years is £4,377; the +3pp stress test rises to £5,820. Loan-to-value sits at 84.0%. Figures assume England and rest-of-UK tax, first-time-buyer relief where applicable, and no joint applicant.
Rate assumption: 4.5% indicative (BoE base rate held at 3.75% in March 2026; typical 5-year fixed rates at 75-80% LTV around 4.25-4.75%). Term: 25 years. Multiplier sourced from FPC and FCA responsible-lending guidance.
Income-multiplier scenarios
Three multiplier bands cover the realistic offer spread from a UK lender on a £175,000 sole income. The Financial Policy Committee's 4.5x cap is a portfolio limit, not a per-borrower one, so 5x is available to qualifying applicants.
| Scenario | Max loan | Max property price | Monthly payment |
|---|---|---|---|
| 4.0x - conservative | £700,000 | £850,000 | £3,891 |
| 4.5x - standard (this page) | £787,500 | £937,500 | £4,377 |
| 5.0x - stretch | £875,000 | £1,025,000 | £4,864 |
Stress-tested monthly at rate + 3pp: £5,820 on the 4.5x loan. The FCA's mandatory +3pp stress was withdrawn in August 2022; most lenders still apply a 1-3pp buffer internally.
Take-home vs mortgage cost
Lenders underwrite to net affordability, not gross. Here is how the 4.5x monthly payment compares against the actual paycheque.
| Line | Amount |
|---|---|
| Gross annual salary | £175,000 |
| Income Tax (PAYE) | £64,953 |
| Employee National Insurance | £5,511 |
| Annual take-home | £104,536 |
| Monthly take-home | £8,711 |
| Monthly mortgage at 4.5x (4.5%, 25yr) | £4,377 |
| Mortgage as % of monthly take-home | 50.2% |
Rule of thumb: under 28% is comfortable, 28-35% is normal, above 35% is stretched. The figure here excludes council tax, insurance, service charge, and ongoing maintenance.
Stamp Duty at this property price
Property-transaction tax at the £937,500 max-price (4.5x income + deposit), England and Northern Ireland SDLT bands.
| Buyer status | SDLT due | Effective rate |
|---|---|---|
| First-time buyer (price above £500k cap, no relief) | £37,500 | 4.00% |
| Standard (home mover) | £37,500 | 4.00% |
Scotland uses LBTT, Wales uses LTT - both produce different totals at the same price. Walk through them on the SDLT, LBTT and LTT calculator pages. Upfront cash budget for a first-time buyer here is approximately £187,500 (deposit + SDLT), plus £2-3k for legal fees, survey and mortgage arrangement.
Loan-to-value and lender pricing
LTV is the mortgage divided by the property price. Lenders price product tiers at 60%, 75%, 80%, 85%, 90% and 95% LTV - lower LTV = lower rate.
At £150,000 deposit on a £937,500 property, your LTV at the 4.5x standard multiplier is 84.0%. This sits in the 85% tier - rates around 4.55%-4.80%.
Same £150,000 deposit, different salaries
Same £175,000 salary, different deposits
Who lends above 4.5x income?
The 4.5x figure is the Bank of England Financial Policy Committee's portfolio cap, not a hard per-borrower ceiling. Each lender can place up to 15% (or 20% for some larger banks) of new lending above 4.5x.
- HSBC - up to 5.5x for higher earners (£75k+ household income), subject to affordability.
- Halifax - JBSP and Income Boost products allow family-supported applications, often pushing the effective multiplier past 5x.
- Nationwide Helping Hand - up to 5.5x for qualifying first-time buyers with 5-year fixes.
- Habito and Perenna - specialist long-fix lenders underwriting to 5x or more on strong-affordability cases.
- Professional mortgages - NHS clinicians, solicitors, accountants, pilots and some military schemes routinely stretch multipliers and use projected future earnings.
Multipliers above 4.5x are normally only available with strong credit, low committed outgoings (debt-to-income under ~20%), and a stable employment record. Specific product availability changes weekly - a broker pull is the only definitive check.
Next steps
- Mortgage affordability calculator hub - run any custom income / deposit / rate / term combination.
- UK salary calculator - check the exact monthly take-home lenders will assess.
- Stamp Duty calculator - England and NI SDLT with FTB relief and surcharges.
- First-time buyer stamp duty checklist - the relief rules and edge cases that catch FTBs out.
- LBTT calculator (Scotland) and LTT calculator (Wales) - regional alternatives to SDLT.
Frequently asked questions
- How much can I borrow on a £175,000 salary with a £150,000 deposit?
- At the 4.5x income multiplier most UK high-street lenders use, a £175,000 salary supports a mortgage of £787,500. Combined with your £150,000 deposit that is a maximum property price of £937,500. The 4.0x conservative band gives £850,000; the 5.0x stretch band, where specialist lenders look, gives £1,025,000.
- What is the monthly mortgage payment at this borrowing level?
- £4,377 per month on a £787,500 repayment mortgage at 4.5% over 25 years. At a +3pp stress test the monthly cost rises to £5,820. Take-home pay on a £175,000 salary is roughly £8,711 per month after Income Tax and National Insurance, so the mortgage uses about 50.2% of monthly net pay - lenders generally treat anything above 35% as stretched.
- What stamp duty would I pay on a £937,500 property?
- £37,500 on the standard residential SDLT bands. Above £500,000 first-time-buyer relief is withdrawn entirely, so the FTB and non-FTB liability is the same. The headline rate steps are 0% up to £125k, 2% £125k-£250k, 5% £250k-£925k, then 10% and 12% above that.
- Who lends above 4.5x income?
- The Bank of England's FPC limits the share of any lender's new loans above 4.5x to 15%, not a hard per-borrower cap. HSBC and Halifax (with JBSP / income-boost), Nationwide's Helping Hand, and specialist lenders like Habito and Perenna underwrite to 5x or 5.5x for strong-affordability cases. Professional mortgages (NHS, solicitor, accountant, pilot schemes) routinely stretch further. Strong credit, low committed outgoings, and a stable employment profile move the needle most.