How Much Can I Borrow?

How the borrowing calculator works

The calculator starts with a broad income multiple range, then deducts an allowance for committed monthly outgoings and dependants. It adds your deposit to the upper borrowing estimate to show an indicative property budget before buying costs.

This is not a lender affordability assessment. A lender may calculate your income, outgoings, credit commitments and stress-tested repayments differently.

Borrowing range vs monthly repayments

The amount you may be able to borrow is only one part of the decision. The higher end of a borrowing estimate may not feel comfortable once repayments, bills, insurance, moving costs and future rate changes are considered.

After using this page, check a possible loan amount with the mortgage repayment calculator. That shows estimated monthly repayments based on the mortgage amount, rate and term you enter.

What lenders look at

• Gross annual income (single or joint).
• Type of income — employed, self-employed, contractor, director, retired.
• Length of employment or trading history.
• Committed monthly outgoings, loans, credit card minimums and childcare.
• Number of dependants.
• Deposit size and source.
• Credit history including missed payments, defaults, CCJs.
• Stress-tested affordability at a higher rate than the headline rate.

Why your lender result may be lower

Your borrowing figure can fall if the lender uses a lower income multiple, caps variable income, excludes some bonus or overtime, applies a shorter mortgage term, or takes a cautious view of your bank statements. Credit history and property type can also affect the lenders and products available.

Deposit and property budget

The property budget shown by the calculator is the upper borrowing estimate plus your deposit. It does not include stamp duty, legal costs, valuation fees, broker fees, moving costs or any lender product fee. A larger deposit may reduce loan-to-value, but it does not remove the need to pass affordability checks.

Why this is only a range

UK lenders use different income multiples, treat bonus and commission differently, and apply their own affordability calculators. The same applicant may receive different borrowing estimates from different lenders. A whole-of-market broker can help identify lenders whose criteria may fit your profile.

Next steps

Use the borrowing range as a starting point, then test repayments and buying costs before viewing properties. If you want lender-specific information, request a callback and a mortgage adviser or broker partner can discuss your circumstances.