Enter your income, any second applicant, monthly debts and deposit to estimate how much you could borrow and the price of home that could buy.
Results are estimates for planning. Check the figures before you make a financial or health decision.
How the Mortgage affordability works
The tool starts with your combined yearly income and multiplies it by the lender income multiple you choose: 4, 4.5, 5 or 5.5 times.
It then reduces that figure for your existing debts. Your monthly debt payments are converted into the loan amount they would represent over your chosen term at your chosen interest rate, and that amount is deducted. The result is the estimated borrowing, never below zero.
The home price is the estimated borrowing plus your deposit. The results also show your deposit as a share of that price, the monthly repayment on the estimated loan, and how much your debts reduced your borrowing.
This is a rough guide. Lenders look at your spending, credit record, employment and whether you could afford higher rates. They may offer more or less than the multiple you pick. Lenders usually offer around 4 to 4.5 times income, sometimes more.
Worked example
Using the default values in the calculator above:
| Input | Value |
|---|---|
| Your yearly income | 55000 |
| Second applicant income | 0 |
| Lender income multiple | 4.5 times income |
| Monthly debt payments | 150 |
| Deposit | 40000 |
| Interest rate | 4.5 % |
| Term | 25 years |
You could borrow about: £220,513
| Home price with your deposit | £260,513 |
|---|---|
| Deposit as a share of price | 15.4% |
| Monthly repayment | £1,225.69 |
| Borrowing cut by your debts | £26,987 |
Tips and common mistakes
Be honest with the debt figure, including car finance, loans and credit card payments, because lenders will see them. Reducing debts before applying can raise your borrowing.
Borrowing the maximum is not the same as affording it. Check the monthly repayment against your budget and try a higher rate. Then use the Mortgage calculator and Stamp duty calculators to work out the full cost of buying. See How much mortgage can you afford?.
Frequently asked questions
How much can I borrow for a mortgage?
The tool multiplies your income by the multiple you choose, then takes off the amount your monthly debts represent. Real offers also depend on your spending, credit record and the lender.
Do my debts affect how much I can borrow?
Yes. The monthly payments on loans, car finance and credit cards are treated as reducing your borrowing, and the results show by how much.
Is the home price the same as my borrowing?
No. The home price shown is your estimated borrowing plus your deposit.