TL;DR
Key points
How much you can borrow for a UK mortgage depends on income, spending, financial commitments, deposit, credit history, dependants, employment type and the property itself. A simple income multiple can give a rough guide, but it does not replace a full lender affordability assessment.
Different lenders calculate affordability in different ways. The same applicant can get different results depending on overtime, bonus income, self-employed income, childcare, car finance, credit cards and loan-to-value.
It is best to check affordability before you start viewing properties. Once you know the likely mortgage range, you can plan the deposit, solicitor fees, survey, property purchase tax and the cash buffer you need after completion. A mortgage broker can compare criteria across lenders and help you get an Agreement in Principle before you make an offer.
What affects mortgage affordability?
Income
Lenders assess salary, bonus, overtime, self-employed income, Ltd director income and stability.
Commitments
Loans, credit cards, car finance or leases, maintenance payments and childcare can reduce the maximum amount you can borrow.
Deposit
Your deposit affects loan-to-value, available products and the risk profile of the application.
Credit history
Your credit report can affect lender choice, rate and whether a case needs specialist assessment.
What is mortgage affordability?
Mortgage affordability is the lender’s assessment of whether you can safely repay the mortgage now and in future. It includes income, commitments, spending, deposit, credit history, age, dependants, employment type and the property.
Two people with the same income can receive different results if one has car finance, childcare, credit card balances or irregular income. This is why lender choice and case preparation matter.
Mortgage affordability calculator
Use this calculator as a rough starting point. It does not replace a full lender assessment, but it can help you understand how income and monthly commitments affect borrowing.
How does it work?
Compare illustrative income multiples of 4, 4.5 and 5. These are model settings, not a borrowing entitlement. Lenders assess income, spending, commitments, credit history, deposit and dependants using their own criteria.
Your income
Loans, credit cards, leases, car finance, maintenance or other regular commitments.
This simplified model multiplies gross annual income by the selected factor, then subtracts one year of the entered commitments. This is not a lender affordability formula and can overstate borrowing, especially with regular commitments. This is only an indicative calculation. The lender will complete a full affordability assessment and may lend less or more depending on income, commitments, deposit, credit history, dependants and property type.
Results
Want a more accurate result? A broker can review your situation, compare criteria across different lenders and estimate a more realistic borrowing range.
Check affordability with a brokerIncome multiples are only a starting point
Many lenders use an income multiple such as 4x, 4.5x or 5x annual income as a starting point. Higher multiples may be available in selected cases, but usually only when the income, deposit, credit profile and overall risk fit the lender.
How do lenders assess your income?
For employed applicants, lenders usually look at basic salary, payslips, P60, contract type, length of employment and how regular any overtime, bonus or commission is. Irregular elements may be averaged or only partly counted.
For self-employed applicants and limited company directors, tax and accounting documents matter, such as SA302s, Tax Year Overviews, accounts, salary, dividends or retained profit, and how stable the income has been over recent years. Lenders usually look at income you can evidence, not turnover. See the self-employed mortgage guide.
What does a lender check?
- type and stability of income
- monthly spending and financial commitments
- number of dependants
- deposit and loan-to-value
- credit history and credit report
- age and mortgage term
- property type and valuation
- whether the case fits lender criteria
How to prepare before applying
Before applying, check your income evidence, regular spending, financial commitments and credit report. Avoid random credit applications and make sure the budget includes the mortgage, deposit and buying costs.
Once your budget is clear, the next step is often an Agreement in Principle (AIP), also called a Decision in Principle. It is a lender's initial indication of how much it may be willing to lend, based on the information you provide and usually a credit check. It is not a mortgage offer: the final decision comes after a full application, document checks and the property valuation.
Checking your credit history before applying can help spot errors or outdated entries. If this is your first purchase, also review the first-time buyer guide.
FAQ
Frequently asked questions
How much can I borrow for a mortgage in the UK?
Lenders use their own income multiples and affordability assessments. Your commitments, spending, deposit, credit history, dependants, age and employment can affect the final amount. An income multiple alone is not a mortgage offer.
Will a lender lend 4 or 5 times my income?
A lender may offer a loan in that range, but four or five times income is not an entitlement or a reliable budget on its own. The income it accepts may differ from your headline earnings, especially for bonuses, overtime or self-employment. Regular spending and commitments are then assessed to decide whether the repayments are affordable.
Why do different lenders give different affordability results?
Each lender has its own affordability calculator and criteria. Differences can come from overtime, bonus income, self-employed income, childcare, debts, age, mortgage term and property type.
Do credit cards affect how much I can borrow?
Yes, they can. A lender may take into account your credit limit, outstanding balance, monthly repayment or how much of the limit you use. High credit card utilisation can reduce the amount a lender is willing to offer.
Does the calculator show a mortgage decision?
No. The calculator gives a rough estimate based on simplified assumptions. The lender will complete a full affordability assessment and may lend less or more depending on income, commitments, deposit, credit history, dependants and property type.
Do children or other dependants affect affordability?
Yes. Lenders allow for household living costs and may also take account of childcare, maintenance or other support you pay. More dependants can therefore leave less income available for mortgage repayments, even if your salary has not changed. Include these costs accurately when preparing your budget rather than relying only on an income multiple.
Can a self-employed person borrow as much as an employed person?
Self-employment does not set a separate universal borrowing limit, but the income a lender accepts can differ from the amount you draw from the business. For a sole trader it may assess profit, while a company director may be assessed on salary and dividends or an eligible share of company profit. Tax calculations, tax year overviews and accounts help establish that income; the lender then checks affordability and the rest of the application. See our self-employed mortgage guide for more detail.
Does a bigger deposit increase how much I can borrow?
A bigger deposit can increase your purchase budget and reduce loan-to-value, meaning the loan is a smaller share of the property price. This may open up more mortgage products, but does not automatically increase the loan a lender considers affordable. Keep enough money aside for buying costs and a reserve instead of assuming all savings should go into the deposit.
What should I check before applying for a UK mortgage?
Start with your credit history, initial affordability and realistic purchase budget. It can also help to check your credit report, for example through CheckMyFile, to make sure it does not contain errors or outdated information. A mortgage broker can help estimate affordability, identify suitable lenders and explain the additional costs of buying a property.
Is affordability the same as credit score?
No. Affordability concerns whether your income can cover the repayments after spending and other commitments. Your credit history records how you have managed credit, while a credit score summarises information using a particular scoring system. A strong score does not overcome insufficient income, and affordable payments alone do not guarantee that a lender will accept your credit history.