How Much Can I Borrow? Mortgage Calculator UK
Model: the range is the typical 4–4.5x income multiple. The payment-capacity check caps the monthly mortgage payment at 35% of gross monthly income minus your other monthly debts, converted to a loan at the example rate and term. The lower of the two is shown as the suggested ceiling. This is an illustration, not a lending decision and not mortgage advice.
The income multiple: the starting point
Most UK lenders start with a simple multiple of your gross annual income — your pay before tax. The typical range is 4 to 4.5 times income. Someone earning £40,000 might borrow roughly £160,000 to £180,000; a couple jointly earning £70,000 might borrow roughly £280,000 to £315,000. Some lenders go higher for certain borrowers — higher earners, some professionals, or people taking a long fixed rate can sometimes reach 5 to 5.5 times income — but that is less common, and the Bank of England limits how much high loan-to-income lending banks can do overall. The multiple is applied to gross income, not take-home pay, and lenders usually count only part of variable pay such as overtime, bonuses or commission.
| Gross household income | At 4× income | At 4.5× income |
|---|---|---|
| £25,000 | £100,000 | £112,500 |
| £40,000 | £160,000 | £180,000 |
| £50,000 | £200,000 | £225,000 |
| £60,000 | £240,000 | £270,000 |
| £80,000 | £320,000 | £360,000 |
| £100,000 | £400,000 | £450,000 |
These are typical figures, not offers. Two people on the same income can be offered very different amounts.
The affordability check: what lenders look at next
The multiple only sets a ceiling. Under the Financial Conduct Authority’s responsible lending rules, a lender must be satisfied you can genuinely afford the repayments, so they build a picture of your monthly finances. They look at your regular outgoings — existing loans, credit cards, car finance, childcare, bills — and subtract them from your income to see what is left for a mortgage payment. They also stress-test: could you still pay if interest rates rose? That is why the calculator above includes your monthly debts and a payment-capacity check. On £60,000 of income with £200 a month of other debts, the payment-capacity loan at the example rate of 4.5% over 25 years is about £278,861 — above the 4.5× ceiling of £270,000, so the multiple is the binding limit. With £800 a month of debts, the payment cap would fall well below the multiple, and the debts would decide the answer.
Your credit history matters too. Missed payments, defaults or a County Court judgment can cut what you are offered or raise the rate, even on a good income. Lenders also look at the deposit: a bigger deposit lowers the loan-to-value ratio, which usually means a lower rate and a wider choice of lenders. A 10% deposit is the usual minimum for a first purchase; 20% or more opens up better rates.
How your deposit changes the home you can buy
What you can borrow is only half the question — the other half is the price of the home, which is the loan plus your deposit. On £60,000 of income with a £30,000 deposit, the £270,000 ceiling at 4.5× income means a home up to about £300,000. With a £50,000 deposit, the same borrowing buys a £320,000 home. Remember the extra costs on top of the price: stamp duty (see our Stamp Duty Calculator), legal fees, a survey, moving costs and furnishing. On a £300,000 purchase for a home mover, stamp duty alone is £5,000 — a first-time buyer pays nothing on the first £300,000. Budget for those costs separately; they are not part of the mortgage.
Five ways to increase what you can borrow
- Clear or reduce debts before applying. Paying off a £200-a-month loan can raise your payment-capacity limit noticeably, because lenders count the freed-up income.
- Apply jointly if you are buying with a partner. Lenders use combined income, which is why the calculator asks for household income.
- Improve your credit record. Register to vote, pay bills on time, and keep credit card balances low for several months before applying.
- Save a bigger deposit. It does not raise the income multiple, but it lowers the loan-to-value, which can mean a better rate and a lender more willing to stretch.
- Consider a longer term. A longer term lowers the monthly payment, which can help the affordability check — but it raises total interest a lot, so weigh it carefully (see the Mortgage Repayment Calculator).
None of these guarantees a bigger offer. The only way to know what a lender will actually offer is an agreement in principle, which is a soft credit check and does not commit you to anything. Speak to a mortgage broker or an FCA-regulated adviser if your situation is unusual — self-employed income, variable pay, or a small deposit are all cases where advice pays for itself.
Self-employed and variable income
If you are self-employed, a contractor or on variable pay, the multiple still applies — but the income figure the lender uses is different. Lenders usually look at your last two or three years of accounts or tax returns, and they often use an average, or the lowest year, rather than your best year. A sole trader’s income is usually the net profit after expenses; a limited company director’s income is usually salary plus dividends, and some lenders will also count retained profit in the company. If your income has risen sharply in the last year, a lender may still use the average, which can be frustrating. If it has fallen, the lower figure will be used. Bonuses, overtime and commission are usually counted only in part — often 50% — or averaged over several years. Keep clean records: two years of SA302 tax calculations and tax year overviews, plus your accounts, will speed up any application. If your income is complex, a mortgage broker who specialises in self-employed borrowers is worth the fee, because different lenders treat the same accounts very differently and a broker knows which ones are generous with your income type.
Agreement in principle: your first real answer
The calculator above gives an estimate. The first real answer comes from an agreement in principle, also called a decision in principle or a mortgage in principle. This is a lender’s statement, based on a soft credit check, that it would lend you a certain amount in principle. It is not a guarantee and it is not a mortgage offer, but it is far more concrete than any calculator, and estate agents will usually ask for one before they take your offer on a home seriously. An agreement in principle usually lasts 30 to 90 days and does not commit you to that lender. Getting one is free, and you can get several from different lenders, though each one leaves a soft footprint on your credit file. When you find a home and make an offer, the lender then does a full application, a hard credit check and a valuation of the property before making a formal offer. The amount can still change at that stage if the valuation comes in low or the lender’s underwriting finds something new — another reason to keep your finances tidy between the agreement in principle and completion.
Related: Mortgage Repayment Calculator · Stamp Duty Calculator · Take Home Pay Calculator
Sources: FCA Mortgage Conduct of Business rules (MCOB 11, responsible lending); Bank of England loan-to-income flow limit guidance (updated July 2025). Income multiples are typical market practice, not a guarantee. Checked 13 November 2026.