Estimate how much you could borrow for a mortgage from your income, your deposit and the income multiple a lender uses. On a £45,000 salary, a lender lending 4.5 times income could offer about £202,500. With a £30,000 deposit that buys a home of up to £232,500. At 4.5% over 25 years the repayment is £1,125.56 a month, or £1,496.46 if the rate rose to 7.5%: about 38% and 50% of take-home pay.
Mortgage Affordability Calculator
How much you could borrow, the home you could buy and the monthly cost · Updated 13 October 2026
- Home you could buy with your deposit
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- Loan to value
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- Deposit as a share of the price
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- Monthly repayment at your rate
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- Stress-test rate
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- Monthly repayment at that rate
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- Take-home pay a month (estimate)
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- Repayment as share of take-home pay
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- Share after the rate rise
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A guide only: lenders also look at your spending, debts, credit record and the property. Take-home pay uses 2026/27 Income Tax and employee National Insurance with no pension or student loan deductions. Repayment mortgage, capital and interest.
How lenders decide how much you can borrow
Most UK lenders start with a cap based on a multiple of your gross income, commonly 4 to 4.5 times for one applicant or for joint income. FCA rules allow income multiples, but the lender must still show the loan is affordable after looking at your income, your spending and the effect of higher interest rates. Unless the rate is fixed for at least 5 years, a lender must consider likely rates over at least 5 years and assume they rise by at least 1 percentage point.
The Bank of England’s Financial Policy Committee scrapped its specific affordability stress test on 1 August 2022 but kept the loan-to-income limit: no more than 15% of new mortgages should be at 4.5 times income or more. Since July 2025, individual lenders have been able to go above 15% under a temporary arrangement as long as the market as a whole stays within the limit, and in April 2026 the regulators consulted on making that permanent. In practice 4.5 times is the usual ceiling, with 5 to 5.5 times offered by some lenders to higher earners.
| Income (single or joint) | 4 times | 4.5 times | 5 times | 5.5 times |
|---|---|---|---|---|
| £30,000 | £120,000 | £135,000 | £150,000 | £165,000 |
| £45,000 | £180,000 | £202,500 | £225,000 | £247,500 |
| £60,000 | £240,000 | £270,000 | £300,000 | £330,000 |
| £75,000 | £300,000 | £337,500 | £375,000 | £412,500 |
Worked examples
| Buyer | Loan | Home price | Monthly repayment |
|---|---|---|---|
| Single, £45,000, £30,000 deposit, 4.5%, 25 years | £202,500 | £232,500 | £1,125.56 |
| Joint, £45,000 and £30,000, £40,000 deposit, 4.5%, 25 years | £337,500 | £377,500 | £1,875.93 |
| Single, £60,000 at 4 times, £60,000 deposit, 5%, 30 years | £240,000 | £300,000 | £1,288.37 |
| Joint, £50,000 and £40,000 at 5 times, £50,000 deposit, 4.5%, 35 years | £450,000 | £500,000 | £2,129.66 |
A longer term lowers the monthly payment but adds a lot of interest over the life of the loan, and some lenders limit terms that run past retirement age.
Deposit and loan to value
- Loan to value (LTV) is the mortgage as a share of the price. A £30,000 deposit on a £232,500 home is 12.9%, so the LTV is 87.1%.
- Most lenders need a deposit of at least 5%. Rates usually get cheaper at each step down, typically at 90%, 85%, 75% and 60% LTV.
- Budget separately for Stamp Duty, solicitor and survey fees and moving costs; they are not part of the deposit.
What else lenders look at
- Regular commitments such as loans, credit cards, car finance and childcare, which reduce what you can afford.
- Your credit record and how stable your income is. Bonuses, overtime and commission may only partly count.
- If you are self-employed, usually two years of accounts or tax calculations (SA302).
- The property itself, through the lender’s valuation.
FAQs
Can I borrow 5 or 6 times my salary?
Some lenders offer 5 to 5.5 times income, mainly to higher earners or certain professions, and a few go further in special cases. Because the market as a whole is limited in how many loans can be at 4.5 times income or more, these deals are less widely available.
Does applying jointly double what I can borrow?
The multiple is usually applied to your combined income, so the maximum loan rises in line with the second income. Both of you are then fully responsible for the whole mortgage.
What stress-test rate should I use?
There is no single official figure any more; each lender sets its own. Adding 2 to 3 percentage points to the rate you are offered is a cautious check. If the higher payment would leave you short each month, consider borrowing less.
Related calculators
- UK Mortgage CalculatorMonthly repayments and interest
- Stamp Duty CalculatorSDLT on your purchase
- Take-Home Pay Calculator 2026/27Your monthly income after tax
Sources
- Bank of England: FPC confirms withdrawal of mortgage market affordability test (2022)
- Bank of England PRA: High loan to income lending, CP6/26 (April 2026)
- FCA Handbook: MCOB 11.6 responsible lending
- GOV.UK: Income Tax rates and Personal Allowances
- GOV.UK: Rates and thresholds for employers 2026 to 2027
Figures current as of 13 October 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
Spotted a mistake? Contact us and we will fix it and update the date above.