Most UK lenders will offer somewhere around 4 to 4.5 times your gross annual income, sometimes more, but the final figure depends on your debts, spending, credit record and the deposit you have. On a single income of £55,000 with no debts, 4.5 times income is £247,500. Use that as a rough starting point, not a promise.
How lenders decide how much to lend
Lenders look at two broad questions: how much you earn, and whether you could keep paying if things changed. The main factors are:
- Income. Your basic salary counts most. Bonuses, overtime and self-employed profits may be counted in part or in full, depending on the lender.
- Existing debts. Credit cards, loans, car finance and other commitments reduce what you can borrow.
- Regular spending. Lenders assess your outgoings, not just your debts.
- Credit record. A poor record can reduce the amount offered or the deals available.
- Stress testing. Lenders check whether you could still afford payments if interest rates were higher.
Because every lender weighs these differently, the same person can get different offers from different lenders.
The income multiple rule of thumb
The quickest estimate is income multiplied by 4 to 4.5. With two applicants, you add both incomes together. The House of Calculator affordability tool lets you choose the multiple, add a second income and subtract your monthly debts.
For example, with £55,000 income, a multiple of 4.5 and a £40,000 deposit, the tool gives:
| Scenario | You could borrow about | Home price with deposit |
|---|---|---|
| No monthly debts | £247,500 | £287,500 |
| £150 a month of debts | £220,513 | £260,513 |
The £150 monthly debt cuts the estimate by about £26,987. Paying off a loan or card before applying can therefore raise what you can borrow.
Deposit, loan-to-value and price
Your deposit works alongside the amount you borrow. Borrowing £220,513 with a £40,000 deposit gives a home price of about £260,513, with the deposit at roughly 15.4% of the price. A bigger deposit means a lower loan-to-value, which can open up cheaper deals, though rates change often so check what lenders currently offer.
Think of the deposit as a savings project. If you are still building one, How long to reach a savings goal shows how long a target takes.
Beyond the loan: what else you will pay
Borrowing capacity is not the same as what is comfortable. Budget for:
- Stamp Duty, LBTT or Land Transaction Tax, depending on where the home is. See Stamp Duty, LBTT and LTT explained.
- Legal, survey and valuation fees, and moving costs.
- Running costs such as insurance, repairs and bills.
It also helps to test the monthly payment at a higher rate than today’s. For a £250,000 loan over 25 years, 4.5% gives £1,389.58 a month, while 5.5% gives £1,535.22. The workings are in How mortgage repayments are calculated.
Ways to improve your borrowing power
- Clear or reduce existing debts and avoid new credit before applying.
- Check your credit report and correct errors.
- Save a larger deposit.
- Consider a joint application, if appropriate.
- Talk to a mortgage broker, who can compare lenders’ criteria.
A simple checklist before you apply
Before approaching a lender or broker, gather the basics so your estimate is realistic:
- Your last few payslips and P60, or tax returns if self-employed.
- A list of all monthly commitments, including credit cards and subscriptions.
- Proof of your deposit and where it came from.
- A rough idea of the area and price range you are considering.
Running the numbers in advance also shows you how much room there is in your budget, so a lender’s offer does not come as a surprise. If the figure is lower than you hoped, you can adjust the deposit, the debts or the price target and see the effect straight away.
Note: This is general information, not financial advice. The tool gives rough estimates; only a lender can confirm what you can borrow. Your home may be repossessed if you do not keep up repayments on a mortgage.
Try the calculator
Put your income, debts and deposit into the Mortgage affordability to see a ballpark borrowing figure. Then use the Mortgage calculator to check the monthly repayment at different rates.
Open the free Mortgage affordability
Frequently asked questions
How many times my salary can I borrow?
Many lenders offer around 4 to 4.5 times annual income, and some will go higher in certain circumstances. The exact multiple depends on your circumstances and the lender’s policy.
Do monthly debts reduce my mortgage?
Yes. Loans, credit cards and finance payments reduce the amount lenders will offer. In our example, £150 a month of debts lowered the estimate by about £26,987.
Do both incomes count on a joint mortgage?
Generally, yes. Lenders add the incomes of joint applicants together, although they also consider both people’s debts and credit records.
Is the amount I can borrow the amount I should borrow?
Not necessarily. A lender’s maximum may leave little room for other costs, so work out what monthly payment you would be comfortable with.