Understanding Mortgage Affordability for High Earners
DIRECTOR AND MORTGAGE ADVISER
High earnings don’t always mean easy access to a large mortgage. In fact, many high-income professionals are surprised to find their borrowing capacity limited — or scrutinised more than expected — despite strong earnings.
In this post, we’ll explain how mortgage affordability is assessed for high earners, why your income structure matters more than just the headline figure, and what you can do to improve your position.
What Does “Affordability” Mean in Mortgage Terms?
Affordability is how lenders decide how much you can borrow. It’s based on:
Your income – including basic salary, bonus, RSUs, and allowances
Your committed outgoings – such as loans, credit cards, school fees, and childcare
The mortgage term and interest rate
Their own stress testing, which checks whether you could still afford repayments if interest rates were significantly higher than your deal
So it’s not just about your income — it’s about what’s left after your regular expenses and how resilient your finances are in tough conditions.
Why High Earners Often Hit Affordability Limits
You’d think earning £250k+ would guarantee generous borrowing — but that’s not always the case. Here's why some high earners struggle:
Bonus-heavy income: Many lenders only use 50% of bonus income, even when it’s paid consistently
Short income history: If you’re new to a role, newly self-employed, or recently promoted, some lenders want a longer track record to utilise all your income
Lifestyle costs: School fees, childcare, and car finance reduce what you can borrow
Lender stress tests: Lenders model affordability at a higher theoretical interest rate, which restricts borrowing
Income exclusions: Carried interest, investment returns, and foreign income are often ignored or heavily reduced by mainstream lenders — even if they form a large part of your compensation
Recent Case Studies
How Lenders Treat High-Income Applicants Differently
When borrowing amounts go above £750k–£1m, your application may be reviewed by a large loan team or private banking underwriter. This can be a positive.
These teams can:
Consider 100% of your bonus or RSUs, if there’s a strong track record
Take net worth and other assets into account
Apply discretionary underwriting based on your overall financial profile
However, this doesn’t always mean you can borrow more than average — just that your case is handled with more flexibility than a standard application.
What Affects How Much You Can Borrow
Basic salary - Always included in full
Bonus income - 50–100% depending on history and lender policy
RSUs / equity - Some lenders include, some don’t — clear documentation is key
Carried interest / investments - Often excluded by high street lenders
Loans and credit - Ongoing monthly payments reduce available income
Childcare / school fees - High impact for families
Loan term - Longer terms can stretch affordability
Interest rate - Lower pay rates help, but lenders test at higher rates
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How to Maximise Your Affordability
Use the right lender – Some are more flexible on bonuses, RSUs, and variable income
Work with an experienced broker – They’ll know which lender fits your profile
Provide strong documentation – Bonus letters, RSU schedules, and historic payslips help
Avoid credit friction – Reduce unnecessary debt and avoid recent applications
Time your application – If a large bonus, promotion, or contract renewal is coming, waiting a few weeks might help
What Our Clients Say
FAQs
Why is my borrowing capacity lower than expected?
Even high earners can be restricted by lender rules. Carried interest, dividends, and investment income might be excluded. Stress testing also reduces what you can borrow, even at lower pay rates.
Will lenders use 100% of my bonus?
Some will — if you’ve been receiving it consistently for two years or more. Others cap it at 50%.
Do RSUs or stock options count?
If they’re vested and received regularly, yes. Lenders typically need a track record and formal documentation.
Can my assets help me borrow more?
Not always directly — but in larger loans, private banks may consider your total wealth in the decision-making process.
Conclusion: Strategy Matters More Than Salary
Your income alone doesn’t determine your borrowing power — how that income is structured, how it’s presented, and which lender you approach are all key.
Need help unlocking your full borrowing power?
We specialise in helping high earners with complex income — from bonuses to RSUs to carried interest — secure the right mortgage, with the right lender.
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YOUR HOME MAY BE REPOSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
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APPROVED BY THE OPENWORK PARTNERSHIP ON 14/07/2025