How Much Can I Borrow Calculator - Check Your Mortgage Affordability
Our how much can I borrow calculator helps you estimate your mortgage borrowing potential based on your income and financial circumstances. Whether you're a first-time buyer starting your property search or looking to move up the ladder, understanding your budget is the essential first step. Use this tool alongside our mortgage calculator to plan your home purchase and see what monthly payments you can expect.
How How Much Can I Borrow Calculator Works
The how much can I borrow calculator uses income multiples to estimate your borrowing capacity. UK mortgage lenders typically offer between 4 and 4.5 times your annual income, though this varies based on your individual circumstances and the lender's criteria.
Income Multiple Calculation
For a single applicant earning £50,000, borrowing at 4x income would give £200,000. Add a second applicant earning £40,000, and your combined borrowing could be £360,000 at the same multiple. Higher multiples (4.5-5x) may be available with larger deposits or certain professions.
Key Factors Affecting Borrowing
- Gross income: Your salary before tax is the primary factor
- Employment type: Permanent employees may borrow more than contractors
- Existing debts: Loans, credit cards, and car finance reduce capacity
- Credit score: Better scores unlock better rates and higher multiples
- Deposit size: Larger deposits can mean access to better deals
How Much Can I Borrow Calculator
Your Financial Details
Combined income: £50,000
Include car finance, credit cards, student loans, etc.
You may qualify for stamp duty relief and special schemes
Income Multiples Explained
Most lenders offer 4-4.5x your annual income. Some offer up to 5x for certain professions (doctors, lawyers, accountants) or with larger deposits. Joint applications combine both incomes.
What Affects Your Borrowing?
- • Credit score and history
- • Employment type (permanent vs contract)
- • Existing debts and commitments
- • Deposit size (larger = better rates)
Understanding Your How Much Can I Borrow Calculator Results
The how much can I borrow calculator shows two key figures: a standard estimate at 4x income and a maximum at 4.5x income. Understanding what these mean helps you set realistic expectations for your property search.
Understanding Your Results
- Standard Borrowing (4x): What most lenders will comfortably offer. This is a realistic target for your mortgage application.
- Maximum Borrowing (4.5x): Possible with certain lenders, larger deposits, or favourable circumstances like professional qualifications.
- Property Budget: Your borrowing plus deposit. This is the maximum property price you should be searching at.
- Monthly Payment: Estimated repayments at current interest rates. Ensure this is comfortable within your monthly budget.
Important Considerations
These calculations are estimates only. Actual lending decisions depend on a full affordability assessment including your spending habits, dependents, and the property you're buying. Consider using our stamp duty calculator to factor in additional purchase costs.
How in the UK: Current Overview
Mortgage affordability rules have tightened since 2014, with lenders required to stress-test applicants at higher interest rates. While the specific stress-test rules were relaxed in 2022, lenders continue to apply their own rigorous affordability criteria.
| Combined Income | Standard (4x) | Maximum (4.5x) | With £50k Deposit |
|---|---|---|---|
| £40,000 | £160,000 | £180,000 | £210,000 - £230,000 |
| £60,000 | £240,000 | £270,000 | £290,000 - £320,000 |
| £80,000 | £320,000 | £360,000 | £370,000 - £410,000 |
| £100,000 | £400,000 | £450,000 | £450,000 - £500,000 |
Top Tips for Using the How Much Can I Borrow Calculator
1. Get Your Credit Score in Shape
Check your credit report for errors and work on improving your score before applying. Pay down credit card balances, ensure you're on the electoral roll, and avoid new credit applications in the months before your mortgage application.
2. Reduce Existing Debts First
Every £100 monthly commitment can reduce your borrowing by £4,000-£5,000. Consider paying off car finance or credit cards before applying. Student loans have less impact as they're income-contingent.
3. Save a Larger Deposit
A bigger deposit means lower LTV, which unlocks better interest rates and potentially higher income multiples. Moving from 10% to 15% deposit can make a significant difference to the deals available.
4. Consider All Income Sources
Overtime, bonuses, and commission can often be included (usually averaged over 2 years). Rental income from buy-to-let properties, dividends, and pension income may also count towards affordability.
5. Factor in All Costs
Remember that buying a home involves more than just the deposit. Budget for stamp duty, solicitor fees, surveys, and moving costs. These can add £5,000-£20,000+ depending on property price.
Frequently Asked Questions About How Much Can I Borrow Calculator
How do lenders calculate how much I can borrow?
Lenders use a combination of income multiples (typically 4-4.5x salary) and detailed affordability assessments. They'll examine your income, regular outgoings, existing debts, credit history, and living costs to ensure monthly payments are sustainable.
Can I borrow more than 4.5 times my salary?
Some lenders offer up to 5-5.5x income in specific circumstances, such as certain professions (doctors, solicitors, accountants), large deposits (40%+), or through specific schemes. However, most borrowers will be limited to 4-4.5x.
Does my partner's income count?
Yes, on a joint mortgage application, both incomes are combined. So two people earning £40,000 each could borrow the same as one person earning £80,000 (around £320,000 at 4x income).
How do existing debts affect my borrowing?
Lenders consider your total monthly outgoings including loans, credit cards, car finance, and other commitments. As a rough guide, each £100 of monthly debt could reduce your borrowing capacity by £4,000-£5,000.
What deposit do I need?
Minimum deposits are typically 5-10% of the property price, but larger deposits (15-25%) unlock better interest rates. First-time buyers may access schemes like Help to Buy that require just 5% deposit.
Will my credit score affect how much I can borrow?
A poor credit score may limit which lenders will accept you, potentially restricting you to specialist lenders with lower income multiples and higher rates. A good score opens up the full market and best rates.
Summary
The how much can I borrow calculator gives you a realistic starting point for your property search based on your income and circumstances. Remember that these are estimates— actual lending decisions depend on a full assessment of your finances, credit history, and the property you're buying. To maximise your borrowing potential, focus on reducing existing debts, improving your credit score, and saving the largest deposit you can. Ready to see what your payments would be? Try our main mortgage calculator to explore different scenarios.