Finance Calculator · UK
How much can I borrow? Includes FCA stress test & overpayment modelling.
Most UK lenders will lend between 4 and 4.5 times your annual income, though some lenders offer up to 5.5x for high earners or professionals. For joint buyers, lenders typically use a combined income. Your deposit size matters too — a larger deposit means a lower loan-to-value (LTV), which usually unlocks better interest rates and monthly payments.
Lenders also stress-test your affordability against higher interest rates and take your existing debts and outgoings into account. Monthly commitments like car finance, loans or credit card minimums reduce what you can borrow. This calculator uses the standard 4.5x income multiple as its base but shows what different multiples look like side by side.
To understand your monthly take-home pay for budgeting repayments, use our Take-Home Pay Calculator. To compare renting vs buying, see our Rent vs Buy Calculator.
Most UK lenders will lend 4 to 4.5 times your annual gross income. For a single applicant earning £50,000, that is typically £200,000–£225,000. For joint buyers, lenders use a combined income. Some lenders — particularly for professionals or high earners — offer up to 5 or 5.5 times income, but these products usually require a larger deposit and a good credit history.
The minimum deposit for most UK mortgages is 5% of the purchase price. However, a 10% deposit typically unlocks significantly better interest rates, and 20%+ gives access to the best rates available. With a 5% deposit (95% LTV), you will generally face higher monthly payments due to both the larger loan and a higher interest rate. Government schemes like the Mortgage Guarantee Scheme may help buyers with smaller deposits.
Lenders assess affordability in two ways: the income multiple (typically 4–4.5x gross income) and a detailed expenditure check. They review bank statements, credit commitments (loans, car finance, credit card minimums), household bills, and childcare costs. They then stress-test the monthly payment at a higher interest rate (typically 3% above the current rate) to ensure you could still afford it if rates rose.
Yes, significantly. Existing monthly debt commitments — car finance, personal loans, credit card minimums, student loan repayments — directly reduce your disposable income and therefore your maximum borrowing. A lender will subtract all monthly commitments from your net income before calculating affordability. Clearing or reducing debts before applying can meaningfully increase what you are offered.
These are usually the same: the term is the number of years over which the loan is repaid. Most UK residential mortgages are on a 25-year term, though 30 and 35-year terms are increasingly common as house prices have risen. A longer term reduces monthly payments but significantly increases total interest paid. This calculator shows both monthly payments and total interest so you can compare terms directly.
The interest rate has a substantial effect on monthly payments. On a £250,000 repayment mortgage over 25 years: at 4% the monthly payment is around £1,319; at 5% it is approximately £1,461; at 6% around £1,610. A 1 percentage point rise costs roughly £140/month on a £250,000 mortgage. This is why affordability stress-testing at higher rates is part of the lending assessment.