Everything You Need to Know About a Mortgage in the UK
- Daniel Dawes
- Nov 3
- 3 min read
Updated: Nov 4
Finding the right mortgage can feel like a big task, but it doesn’t have to be. At Well Financial, we make the process simple, transparent, and stress-free.
Whether you’re buying your first home, moving house, or just starting to explore your options, this guide covers everything you need to know about mortgages in the UK - from how they work to how much you could borrow.
When you’re ready, use our mortgage calculator
for a quick estimate, or book a free appointment
with one of our friendly advisers for expert, personal advice.
What Is a Mortgage?
A mortgage is a loan you take out to buy a property. Instead of paying the full price upfront, you borrow money from a lender and repay it over time with interest.
In simple terms, it’s a long-term loan that’s secured against your home.
Example:
If you’re buying a £200,000 home and have a £20,000 deposit, you might borrow £180,000 as a mortgage.
A mortgage isn’t good or bad: it’s simply a financial tool. Used wisely, it helps you buy your home, build equity, and create financial security.
👉 Want to see how much you could borrow? Try our mortgage calculator
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Can I Get a Mortgage with a £20,000 Salary in the UK?
Yes, you can - but your borrowing amount will be limited. Most UK lenders offer between 4.5 - 5.5 times your annual income.
On a £20,000 salary, that means you could borrow between £60,000 and £90,000.
You might be able to increase that amount if:
You apply with a partner (a joint mortgage)
You have a larger deposit
You receive extra income such as bonuses, overtime, or benefits
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What Does “Mortgage” Actually Mean?
Simple definition: A mortgage is a loan used to buy property, repaid in monthly instalments.
Legal definition: A mortgage is a legal agreement in which your property acts as security for the loan.
Oxford Dictionary definition: “A legal agreement by which a bank lends money at interest in exchange for taking title of the debtor’s property.”
Common types of mortgages:
Fixed-rate mortgage
Variable-rate mortgage
Tracker mortgage
Interest-only mortgage
Repayment mortgage
A house is considered mortgaged when it’s used as collateral for a loan until it’s fully paid off.
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What Salary Do I Need for a £300,000 Mortgage in the UK?
To borrow £300,000, lenders typically expect a combined household income of around £65,000–£75,000, depending on your deposit size and affordability checks.
For example:
With a 10% deposit (£30,000), you’d borrow £270,000.
Using a typical 4.5x income multiple, that means a salary of roughly £60,000.
A larger deposit reduces how much you need to borrow and can help you secure a better interest rate.
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Why Choose Well Financial?
At Well Financial, we believe mortgages shouldn’t be complicated or intimidating. We take the time to understand your situation and match you with the best possible deal for your needs.
We offer:
✅ Free, no-obligation mortgage review
✅ Access to a wide range of UK lenders
✅ Personalised guidance from real experts
Whether you’re earning £20,000 or £120,000, we’ll help you find the right mortgage for your goals and your lifestyle.
to speak with a friendly mortgage adviser.
Ready to Take the Next Step?
Your home-buying journey starts here.
Let’s make your path to home ownership simple, transparent, and stress-free
.
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