Mortgage Borrowing Calculator
Discover how much you can borrow
Most mortgage lenders use an income multiple of 4-4.5 times your annual income to work out how much they'll lend. Use our calculator to get an estimate of how much you could borrow based on your income and deposit.
Our calculator considers your income, monthly commitments, and deposit to give you a realistic estimate of your borrowing capacity.
Maximum Borrowing
£0
Mortgage Breakdown
Key Metrics
Borrowing Status
⚠️ Required mortgage exceeds borrowing capacity
Loan to Value (LTV)
96.0%
High LTV - Limited options
Deposit Percentage
4.0%
Low deposit
Required Mortgage
£240,000
Est. monthly: £0.00
💡 How This Works
The calculation considers:
- Annual income (4-4.5x multiple)
- Monthly financial commitments
- Deposit amount
- Property value (for LTV)
⚠️ Important Note
This is an estimate only. Actual borrowing depends on lender criteria, credit history, and other factors.
Maximum Borrowing:
Highest amount typically offered based on income and commitments
Required Mortgage:
Amount needed (property value minus deposit)
If you need to borrow more:
- Increase your deposit
- Look for a cheaper property
- Increase income or reduce commitments
Frequently Asked Questions
How much can I borrow for a mortgage?
Most UK lenders will lend between 4 to 4.5 times your annual gross income. For example, if you earn £40,000 per year, you could typically borrow between £160,000 and £180,000. Some lenders may offer up to 5-6 times income in exceptional circumstances, but this is rare and usually requires a high income and excellent credit history.
What is an income multiplier in mortgage lending?
An income multiplier is the number of times your annual salary that a lender is willing to offer as a mortgage. Traditional multipliers range from 4x to 4.5x your gross annual income. Some specialist lenders may offer higher multipliers (5x-6x) for high earners, usually those earning over £75,000-£100,000 per year. The multiplier varies by lender, your credit score, and the type of property you're buying.
How do lenders calculate joint mortgage borrowing?
For joint mortgages, most lenders add both incomes together and apply the income multiplier to the combined total. For example, if you earn £30,000 and your partner earns £35,000 (total £65,000), you could borrow £260,000-£292,500 at 4-4.5x multiplier. Some lenders may cap the second income contribution or use different multipliers for joint applications.
What impact do existing debts have on mortgage borrowing?
Existing debts significantly reduce your borrowing capacity. Lenders deduct your monthly credit commitments (loans, credit cards, car finance) from your disposable income when calculating affordability. For example, £500 monthly debt payments could reduce your borrowing capacity by £50,000-£100,000 depending on interest rates. Paying off debts before applying can substantially increase what you can borrow.
How does my deposit size affect how much I can borrow?
A larger deposit doesn't directly increase the amount lenders will lend, but it does affect the total property value you can afford. Your borrowing is based on income multiples, but your deposit plus the loan equals the maximum purchase price. A larger deposit also gives you access to better interest rates and more lender options, as you'll have a lower loan-to-value (LTV) ratio.
What is a mortgage affordability stress test?
Lenders must stress test your affordability by calculating whether you could still afford repayments if interest rates increased by 2-3% above the mortgage rate. This is required by FCA regulations to ensure you won't default if rates rise. The stress test often reduces the amount you can borrow by 10-20% compared to a simple income multiple calculation.
Can self-employed people borrow as much as employed people?
Self-employed applicants can borrow similar amounts, but lenders typically require 2-3 years of accounts or tax returns (SA302s) to prove income. Lenders often average your income over 2 years, which can reduce borrowing if your income fluctuates. Some lenders are more flexible and may use your most recent year's income if it's higher. Contractors on day rates may be treated as employed if they have 12+ months remaining on their contract.
What other factors affect mortgage affordability?
Beyond income and deposit, lenders consider: your age (mortgages typically must be repaid by 70-75), number of dependents (children increase expenses), credit history (poor credit reduces borrowing), employment type (probation periods may be a concern), property type (non-standard construction may limit lending), and location (some postcodes are restricted). Regular gambling, overdraft usage, or payday loans in your bank statements can also reduce what lenders will offer.
Should I borrow the maximum amount offered?
Just because a lender will lend you the maximum doesn't mean you should borrow it. Consider your lifestyle costs, future plans (children, career changes), potential interest rate rises, and the need for emergency savings. Many financial advisors recommend borrowing no more than 3-3.5x your income to maintain financial flexibility, even if lenders offer 4.5x or more. Leave room in your budget for home maintenance, furnishings, and unexpected expenses.
How can I increase my mortgage borrowing capacity?
To increase what you can borrow: 1) Increase your income through promotions, side income, or job changes (must be permanent, not overtime), 2) Apply jointly with a partner to combine incomes, 3) Pay off existing debts to reduce monthly commitments, 4) Improve your credit score by fixing errors and paying bills on time, 5) Save a larger deposit to access better rates, 6) Consider a longer mortgage term (though you'll pay more interest), and 7) Choose the right lender as different lenders use different affordability criteria.