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Mortgage Affordability Calculator
How much can you borrow? Enter your income, deposit, and outgoings to estimate your maximum mortgage and the property price you could afford.
You Could Afford a Property Up To
£182,500
Max Borrowing
£157,500
Your Deposit
£25,000
Monthly Payment
£967
LTV Ratio
86%
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Frequently Asked Questions
How much can I borrow for a mortgage in the UK?
Most UK lenders cap borrowing at 4-4.5 times your gross annual income. Some lenders go up to 5.5x for high earners or certain professions. The actual amount also depends on a stress test: you must be able to afford repayments if interest rates rose by 3%.
Does a joint mortgage increase how much I can borrow?
Yes. Joint applications combine both applicants' incomes, which directly increases the income multiple and therefore the maximum loan. The lender will also assess both applicants' credit histories and existing financial commitments.
What deposit do I need to get a mortgage?
The minimum deposit for most residential mortgages is 5% of the purchase price. A 10% deposit gives access to more products and better rates, while 15-20%+ unlocks the best available rates and the widest choice of lenders.
What is a mortgage-to-income ratio and what is a good level?
Your mortgage-to-income ratio is your monthly repayment as a percentage of gross monthly income. Most lenders prefer this below 35%. Below 28% is considered comfortable; above 40% and many mainstream lenders will decline. Lower is always better for long-term financial resilience.
Does my credit score affect how much I can borrow?
Yes. A poor credit score can reduce the amount lenders are willing to offer or lead to outright refusal. It also affects the interest rates available — a lower score typically means higher rates, which affects the monthly payment and lender stress test calculations.
Disclaimer: This calculator provides estimates for illustrative purposes only. Results are based on simplified assumptions and should not be relied upon for financial decisions. Actual costs, returns, and outcomes will vary. Always consult a qualified professional before making property or financial decisions.
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How Do UK Lenders Calculate Mortgage Affordability?
UK mortgage lenders use two main tests: an income multiple cap (typically 4-4.5x your annual income, occasionally up to 5.5x for high earners) and a stress test that checks you can still afford repayments if interest rates rise by 3%. The combination of these two tests determines the maximum you can borrow — the lower result of the two wins.
This calculator applies the income multiple approach. To understand what a lender will actually offer, you'll need a Decision in Principle (DIP) which factors in your credit score, outgoings, employment type, and the specific property.
Mortgage-to-Income Ratio Explained
Your mortgage-to-income ratio is your monthly mortgage payment as a percentage of your gross monthly income. Most lenders prefer this to be below 35%, with 28% considered comfortable. Above 40% and you may struggle to find mainstream lenders willing to lend — specialist lenders exist but at higher rates.
What Counts as Income for a Mortgage?
Salaried employment income is straightforward. For self-employed applicants, most lenders use the average of the last 2-3 years' net profit or salary + dividends (for company directors). Bonus and commission income is typically included at 50-100% depending on the lender. Rental income from existing properties can usually be included, typically at 125-145% of the gross rent to cover costs.
Buy-to-Let Affordability Is Different
Buy-to-let affordability is based primarily on rental income, not your personal income. Lenders typically require the monthly rent to cover 125-145% of the mortgage payment (at a stressed rate of 5-5.5%). Personal income matters mainly for portfolio landlords and for minimum income thresholds (usually £25,000).