Before You Continue…

Our website uses cookies. By continuing to browse the site, you are agreeing to our Privacy Policy.

OK - continue
logo
Search for mortgage help
CALL US:  023 8098 0304
Mobile menu bars Close mobile menu
mortgage calculator mortgage calculator
request a call back Request a Callback
email us info@themortgagehut.net
call for mortgage advice chat online now
Search for mortgage help

Specialist Mortgage Help

  • First Time Buyers
  • House Mover Mortgages
  • Bad Credit Mortgages
  • Remortgaging
  • Equity Release
  • Self Employed Mortgages
  • Buy to Let Mortgages
  • Expat Mortgages
  • Commercial Mortgages

Useful Links

  • Home
  • Contact us
  • Mortgages
  • Mortgage Insurances
  • About Us
  • Customer Reviews
  • Refer a Friend Scheme
  • Expert Articles
  • News
  • Sitemap
  • New Build Mortgages
  • CIS Mortgages Explained

Privacy Settings

  • Privacy Policy

Can I get a £250,000 mortgage?

  1. Home
  2. Expert Articles
  3. First Time Buyers

House prices have fluctuated over the years but according to the UK house pricing index, data from May 2020 shows on average, house prices in England have risen by 0.2% since April 2020. 


This price rise of 2.9% takes the average property value to £251,973, so it’s not surprising that so many people are curious about how they can get a mortgage for 250k. 

How do lenders decide to approve a mortgage for 250k?

There are lots of factors that affect the likelihood of you getting a mortgage for this amount but prominent points that lenders focus on are your:


  • Income and expenditure

  • The size of your deposit

  • Credit history

  • The type of property you want to buy

  • Age

  • The type of mortgage you want 


When a lender receives an application for a mortgage, they look at these circumstances to decide if you meet their criteria and if you present a higher risk for defaulting on your repayments.

How much do I need to earn to get a mortgage of £250,000 in the UK?

Affordability rules also vary between lenders although typically, most lenders allow their borrowers to apply for mortgages up to 4.5 x their annual salary or annual income for self-employed or contract workers. 


As a single applicant, that would mean you need to earn a minimum of £55,000 a year.


However, if you decide to apply for a joint mortgage, in theory there would be two incomes on the application to combine so between you, you would need to meet this annual figure. For example, you may earn £30,000 a year and your partner earns £25,000 a year. 

How much deposit do I need for a 250k mortgage?

There really isn’t a typical deposit size for a mortgage amount as there are so many factors that influence the amount that a lender will require you to put down. 


Some mortgage products are deemed by lenders as higher risk, such as commercial mortgages or buy-to-let mortgages that have repayments dependent on rental income from tenants.


Lenders like to feel certain that borrowers can repay their loans on time and in full and if you have circumstances which hinder this confidence, a larger deposit can sometimes help to alleviate the risk of greater loss to the lender. 


That’s because a larger deposit means owning more equity and therefore you only need to apply for a smaller loan. 

Deposit requirement variations 

Type of mortgage product

        Deposit amount

Residential mortgage for £250,000

      15 - 20%

Buy-to-let mortgage for £250,000

       25 - 40%

Commercial mortgage for £250,000

         25 - 40%  

Can I get a 250k mortgage with a 5% deposit?

The number of lenders in the UK offering mortgages with 5% deposit requirements is low and usually the terms and conditions of these agreements require the borrower to have high affordability, little to no bad credit and an income sufficient enough to comfortably repay their mortgage, even in the event of a fluctuation of income or loss of job. 


A handful of lenders may consider lending you 95% of the property’s value but it’s important to be aware that many lenders will only be prepared to offer loans with an 80 - 90 % LTV (loan-to-value) ratio.


A low loan-to-value ratio usually means you can borrow more of the property’s market value, whereas a high ratio will be more restrictive.


That being said, not all lenders have the same criteria so check with a mortgage broker ahead of applying so you know how much deposit you’ll need based on your circumstances and where you can find the best deal. 

Can I get a mortgage for 250k with bad credit?

Credit issues such as CCJs or missed loan payments can affect your choice of mortgage lenders because many UK lenders won’t be prepared to loan large sums of money to a borrower without good affordability or a track record of managing money. 


This can seem harsh, especially if your bad credit occurred a long time ago or had been repaid but thankfully there are banks and lenders that take other factors, like the above, into consideration. 


The severity of the bad credit can also affect a lender’s decision about whether to approve your £250,000 mortgage. All lenders have their own set of criteria but in some instances if other conditions are met, it may be possible to get a mortgage despite credit issues including bankruptcy. 


The expertise that a mortgage broker can provide in instances as such can be invaluable as they know the lenders that are more likely to accept you as a borrower and under what circumstances. 


They can calculate how much deposit you’ll need as often having bad credit can result in lenders requiring higher deposit requirements. This can save a lot of time and can also help you find the most affordable agreement that works for you.

Can I get a mortgage for £250,000 if I’m self-employed?

While it’s true that there are lenders that prefer borrowers to have steady, predictable sources of income, there are a handful of lenders in the UK that have criteria that are more flexible or open to self-employed applicants or freelancers.


Contractors and self-employed workers need to prepare their tax records ahead of applying for a mortgage as lenders will look closely at the amount of income you earn as well as how often it dips. 


You might need a larger deposit of up to 30% but that certainly isn’t always the case as your other circumstances will weigh in on a lender’s decision to accept you or not. 

Check your eligibility today

It can be tempting to apply to multiple lenders in hope of getting approved but this can negatively impact your credit score which is something you want to avoid. After all, lenders look at recent credit applications to determine your risk level as a borrower and recent credit rejections don’t help to build your case. 


To find out if you’d get approved for a £250,000 mortgage ask a broker to compare your options and then check on your behalf. 


It’s quick, free and won’t damage your credit report. 


Alternatively, if you have questions about how you can get a mortgage for 250k or any other amount, speak to one of our advisors and they can help you find the answers you’re looking for. 

Managing Director Nicola Schutrups
First Time Buyers Expert Article by
Nicola Schutrups (Managing Director)
The Mortgage Hut

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Related First Time Buyers Information

  • Can I get a £210,000 mortgage?
  • How to buy a house in 2021
  • What is a Joint Borrower Sole Proprietor (JBSP) Mortgage?
  • How can I get approved for a £330,000 mortgage?
  • I’ve lost my income because of Covid-19: Can I still apply for a mortgage?
  • Can I get a 90% LTV mortgage after Covid-19?
  • 10 top tips to help get you on the property ladder
  • What is a Mortgage Underwriter?
  • Can I get a mortgage for £200,000?
  • Mortgages for Nurses

Looking for a Mortgage?

Find out if you're eligle in a couple of clicks, with no hidden credit checks.

Get Started

Follow us on social media for updates

  • Like us on Facebook
  • Follow us on Twitter
  • See us on instagram
  • Watch us on YouTube

Contact The Mortgage Hut

Head office address of The Mortgage Hut
SOUTHAMPTON (HQ)
14 College Place
Southampton
Hampshire
SO15 2FE
Head office phone The Mortgage Hut
023 8098 0304
Head office email The Mortgage Hut
info@themortgagehut.net
Contact Us

The Mortgage Hut Limited is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority.

The Mortgage Hut Limited. Registered Office: 14 College Place, Southampton SO15 2FE Registered in England Number: 07629941

Contact Us

Important Information

  • The guidance and advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.
  • Some products are not regulated by the Financial Conduct Authority.
  • Please note that The Mortgage Hut is not responsible for the accuracy of the information contained within any linked sites accessible from our website.
  • Your home may be repossessed if you do not keep up repayments on your mortgage.
  • There may be a fee for mortgage advice.
  • The actual amount will depend upon your circumstances.
  • The fee is up to 1% and a typical fee is £748.

Data Protection & Privacy

You voluntarily choose to provide personal details to us via this website.

Personal information will be treated as confidential by us and held in accordance with the Data Protection Act 1998.

You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.

When you use our website, we access your device/computer to set cookies and collect data.

We do this so it works, is secure and delivers the best browsing experience.

We also collect data to study how people use our site and help us improve our services and tailor our marketing.

For more information see our Privacy Policy.

back icon
close icon

Specialist Mortgage Advice

Mortgage Advice

Mortgage Advice
Get Started
Mortgage Advice

Mortgage Advice

Remortgage Advice

Remortgage Advice
Get Started
Remortgage Advice

Remortgage Advice

Buy to Let Mortgage

Buy to Let Mortgage
Get Started
Buy to Let Mortgage

Buy to Let Mortgage

Is the mortgage for your home or a business venture?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Are you buying or remortgaging?

Residential Button Residential Hover Button
Buy To Let Button Buy To Let Hover Button

Have you found a property yet?

Yes Button Yes Hover Button
No Button No Hover Button

Is the property house or a flat?

House Button House Hover Button
Flat Button Flat Hover Button

What is the property’s estimated value?

£

Deposit amount or equity?

£

Have you got any adverse credit?

Yes Button Yes Hover Button
No Button No Hover Button

What types of adverse credit?

Next Button Grey Next Button Blue Next Button White

What is you combined annual income (before tax)?

£

Sourcing Mortgages…

Nicola Arbon

“There's a reason why over 500 clients rate us as Excellent.”
Nicola Arbon, Managing Director and Mortgage Guru

Green Tick

Congratulations, we've successfully found you multiple mortgage options.

Next Button Blue Next Button White

Please enter your name to send you the results

Please enter the best email to send you the results

What is the best number to reach you on?

What day & time best suits you?

Next Button Blue Next Button White

Thank you

logo

A member of The Mortgage Hut team will review your enquiry & we’ll be in touch to discuss in more detail & to advise on the options available to best suit your needs.

Head office phone The Mortgage Hut 023 8098 0304