Property & Mortgages

Mortgage Affordability Calculator

Estimate how much you could borrow based on your income and deposit, across conservative, typical, and maximum lending multiples.

Borrowing EstimateIncome MultiplesLTV & Property Price

Your details

Rate and term are used for estimated monthly payments only

These are estimates based on income multiples. Actual lender decisions depend on many more factors.

Estimated borrowing (typical 4.5×)

£202,500

Property up to £242,500 · £1,126/mo

Borrowing estimates · £45,000/yr income

Conservative (4×)

£180,000

Property price

£220,000

LTV: 82%
Est. monthly: £1,000
Equity 18%Loan 82%

Typical (4.5×)

£202,500

Property price

£242,500

LTV: 84%
Est. monthly: £1,126
Equity 16%Loan 84%

Maximum (5×)

£225,000

Property price

£265,000

LTV: 85%
Est. monthly: £1,251
Equity 15%Loan 85%

Income multiple estimates only. Actual lender decisions depend on credit history, monthly outgoings, existing debts, and individual affordability assessments.

Affordability Guide

How lenders assess affordability

Mortgage affordability is not just about your income. Since the Mortgage Market Review (MMR) in 2014, UK lenders are required to carry out detailed affordability assessments that go well beyond a simple income multiple.

Income Multiples

The income multiple rule of thumb

Most UK lenders will lend between 4 and 4.5 times your gross annual income. Some will go to 5 times, particularly for higher earners (typically above £60,000–£75,000) or professionals in regulated fields. On a joint application, most lenders combine the two incomes before applying the multiple. These multiples are a starting point, not a guarantee Your actual offer may be higher or lower depending on your full financial picture.

Stress Testing

Affordability stress tests

Lenders do not just check you can afford payments today. They stress test whether you could still afford them if interest rates rose by around 3% above your initial rate. This means a borrower qualifying at 4.5% must demonstrate they could manage payments at roughly 7.5%. If your income is tight relative to the loan size, the stress test can be the binding constraint, reducing your actual offer below the headline income multiple.

Outgoings

Monthly outgoings and existing debts

Lenders deduct your regular monthly commitments from your disposable income before assessing affordability. Car finance, credit card minimum payments, student loans, subscriptions, and childcare costs all reduce what a lender considers available for mortgage payments. Clearing debts before applying (or reducing credit card limits) can meaningfully improve your affordability position.

Deposit

How your deposit helps

A larger deposit lowers your LTV, which gives you access to better interest rates and makes you a lower-risk borrower. At 75% LTV or below, most mainstream lenders offer their most competitive products. At 90% or 95% LTV, the choice of lenders narrows and rates are higher, which increases your monthly payment and may reduce the loan size you can sustain. Saving a larger deposit, even by delaying a purchase slightly, can have a significant effect on the total cost of your mortgage.

Frequently asked questions