How Much Can I Borrow Calculator

Work out your borrowing ceiling

Enter your income, any second applicant's income, your deposit and your regular outgoings into the tool above. It returns an estimated maximum loan, the likely property price you could reach, and the income multiple that figure represents. Treat it as a starting point for conversations with a broker, not a formal mortgage offer.

How a mortgage affordability calculator works

There are two checks every UK lender runs, and a good mortgage affordability calculator mirrors both.

The first is the income multiple. Lenders cap most lending at a multiple of your gross annual income. The common range is:

• 4 to 4.5 times income for a typical applicant
• 5 to 5.5 times for higher earners or certain professional schemes
• 3.5 times or lower if your credit history or job type is less certain

For a joint application, lenders usually add both incomes, then apply the multiple to the combined figure. The plain formula is:

Maximum loan = total gross annual income × income multiple

The second check is affordability. The lender looks at what is left after tax, National Insurance, existing debts (car finance, loans, credit cards), childcare and other fixed costs, then tests whether you could still pay the mortgage if interest rates rose. This is the stress test, introduced after the financial crisis and overseen by the Financial Conduct Authority. A lender might check you could cope at a rate two or three percentage points above the deal rate. Whichever check produces the lower number, that becomes your ceiling.

Your deposit matters too, because it sets your loan-to-value (LTV). A bigger deposit means a lower LTV, access to better rates, and often a more generous affordability assessment. With a 10% deposit you borrow at 90% LTV; with 25% down you borrow at 75% LTV and unlock cheaper deals.

Worked example: a nurse and a teacher buying together

Say Priya earns £34,000 and her partner Tom earns £30,000. Their combined gross income is £64,000.

• At 4.5× income: 64,000 × 4.5 = £288,000 maximum loan
• They have a £36,000 deposit saved
• Property price they could reach: 288,000 + 36,000 = £324,000

Now add a complication. Tom has £280 a month of car finance with two years left. Lenders treat ongoing credit commitments as a reduction in affordable borrowing, so the affordability check might pull their realistic loan down to around £265,000 even though the income multiple alone allowed £288,000. Clearing that car finance before applying could restore much of the gap.

Worked example: a single first-time buyer

Aisha earns £42,000 and has a £25,000 deposit with no debts.

• At 4.5×: 42,000 × 4.5 = £189,000 loan
• Property price: 189,000 + 25,000 = £214,000
• Her deposit of £25,000 on a £214,000 home is about a 12% deposit, so she borrows at roughly 88% LTV

If Aisha qualifies for a professional or higher-income product at 5×, her loan could rise to £210,000 and her budget to £235,000. That is why it pays to compare a couple of multiples rather than fixing on one number.

What lenders count as income

Basic salary is counted in full. Beyond that, treatment varies: many lenders count only 50% of regular overtime, commission or bonuses, and some average the last two or three years for self-employed applicants using SA302 tax calculations and accounts. If you are self-employed, lenders typically want two to three years of figures. Our self-employed tax calculator can help you confirm the net profit lenders will assess. Benefits such as Child Benefit and certain tax credits may be partly counted, but policies differ widely.

How to borrow more without overstretching

• Clear short-term debt first. Paying off a credit card or ending car finance often boosts affordability by more than the monthly saving, because the lender removes the whole commitment from the calculation. Check your debt-to-income ratio before applying.
• Grow the deposit. Crossing an LTV band (say from 90% to 85%) can cut your rate and improve the assessment. See how far your savings stretch with the house deposit calculator.
• Extend the term. A 35-year term has lower monthly payments than a 25-year one, which can raise the affordable amount, though you pay more interest overall.
• Tidy your bank statements. Lenders read three to six months of statements. Frequent gambling transactions, unauthorised overdrafts or returned direct debits can shrink the offer.

Once you have a target loan, use the mortgage repayment calculator to see the monthly cost at different rates and terms, so the figure is comfortable and not just approved.

Common mistakes to avoid

• Confusing the maximum with the affordable. Just because a lender will offer 4.5× income does not mean those payments will sit comfortably alongside bills, pension contributions and life's surprises. Borrow to what you can live with, not the cap.
• Forgetting buying costs. Stamp duty (SDLT in England and Northern Ireland, LBTT in Scotland and LTT in Wales), legal fees, surveys and removals all come from cash, not the mortgage. First-time buyers in England and Scotland get relief, but Wales has no first-time buyer relief, so budget accordingly.
• Applying to several lenders at once. Multiple hard credit searches in a short window can dent your score. Use eligibility checkers that run soft searches first.
• Counting unstable income at full value. If a big slice of your pay is bonus or commission, assume the lender will discount it.

Property tax is regional, so always check the rules for the nation you are buying in rather than assuming England's apply UK-wide.

For impartial, official guidance on mortgages and stress testing, see MoneyHelper and the Financial Conduct Authority. The Bank of England base rate also feeds into the rate your stress test is built on.

These results are estimates for guidance only and are not personal tax or financial advice. Your actual borrowing will depend on a lender's full assessment of your circumstances.

Related property and mortgage calculators

Plan the rest of your purchase with the mortgage calculator, work out your upfront tax with the stamp duty calculator, and if you already own, compare deals using the remortgage calculator.

The numbers: income multiples lenders actually use

Most UK lenders cap borrowing at 4 to 4.5 times household income, stretching to 5 times for strong applications. Joint applications combine both incomes.

Deposits, credit history and outgoings all move the answer. Free guidance: MoneyHelper mortgage affordability.

Who should use this calculator

This answers the question that comes first: given what you earn and what you have saved, roughly what size of mortgage is realistic? Lenders start from a multiple of income, so this gives you a sensible price range to search within before you fall in love with a house you cannot finance.

It takes a second applicant’s income because most lenders assess joint applications on combined income, and it takes your deposit because the deposit plus the borrowing is what sets your ceiling. Once you have a target price, the mortgage calculator turns it into a monthly payment.

What this calculator assumes

• Borrowing is estimated as a multiple of gross annual income, the standard first filter lenders apply. Around four to four and a half times is typical; some lenders stretch further for higher earners or particular professions.
• A second applicant’s income is added to the first before the multiple is applied.
• The income entered is regular and provable — salary or established self-employed profit.
• Your maximum purchase price is the estimated borrowing plus your deposit.

Limitations — what it does not cover

• The affordability assessment itself. Income multiples are a cap, not a decision. Lenders then examine your outgoings — childcare, credit commitments, car finance — and often lend less than the multiple suggests.
• Stress testing. Lenders must check you could still pay at a materially higher interest rate than the one you are offered.
• Your credit history, which affects both whether you are accepted and the rate you get.
• Loan-to-value tiers. Rates step down at 90%, 85%, 80% and 75% LTV, so a slightly larger deposit can cut the rate as well as the loan.
• Variable income — bonuses, commission, overtime and freelance earnings are treated inconsistently between lenders.
• The other costs of buying, including stamp duty, which come out of your deposit rather than the mortgage.