Find out exactly how much you can borrow for a UK mortgage. Enter your income, deposit and monthly commitments to see your maximum loan, monthly repayments at current rates and how rate rises affect affordability.
| Rate Scenario | Monthly Payment | Annual Cost | % of Income |
|---|
Understanding mortgage affordability is critical before you start house hunting. Viewing properties you cannot finance leads to wasted time and disappointment. Lenders use two main tests: an income multiple cap (how much they will lend relative to your salary) and a stress test affordability check (can you still afford repayments if rates rise by 2–3%). Both need to pass for approval.
The loan-to-income (LTI) ratio is the simplest check: most lenders cap at 4.5 times gross annual income. Joint applications use combined income. Some lenders offer 5–5.5 times for professionals (doctors, lawyers, accountants) or those with large deposits. The Financial Policy Committee limits lenders from offering 4.5×+ to more than 15% of their mortgage book.
Beyond the income multiple, lenders stress-test your application at a "reversion rate" — typically 6–7% — to check you could still afford repayments if the Bank of England base rate rises significantly. Monthly outgoings (loans, credit card minimums, childcare) are deducted from disposable income. This is why committed outgoings reduce your maximum borrowing by more than their face value.
Being approved for £270,000 does not mean £270,000 is the right amount to borrow. Lenders approve based on financial stress tests, not your life plans. Job changes, starting a family, unexpected costs — all of these reduce your ability to service a maxed-out mortgage. A buffer of 10–15% below your maximum is prudent financial planning, not missed opportunity.
| LTV | Deposit % | Typical 2yr Fixed Rate | Typical 5yr Fixed Rate |
|---|---|---|---|
| 60% LTV | 40% deposit | 3.9–4.2% | 3.8–4.1% |
| 75% LTV | 25% deposit | 4.0–4.4% | 3.9–4.3% |
| 85% LTV | 15% deposit | 4.2–4.7% | 4.1–4.6% |
| 90% LTV | 10% deposit | 4.5–5.0% | 4.4–4.9% |
| 95% LTV | 5% deposit | 5.0–5.6% | 4.9–5.4% |
Most UK lenders will lend up to 4.5 times your gross annual income. Joint applications use combined income. A household earning £70,000 combined can borrow up to £315,000 at 4.5×. Some lenders offer 5× for professionals or larger deposits. Affordability is also assessed by stress-testing your income against higher rates and deducting committed monthly outgoings.
At 4.3% on a 25-year repayment mortgage: £225,000 costs approximately £1,220/month. £275,000 costs approximately £1,490/month. £325,000 costs approximately £1,760/month. A rough rule: divide the loan by 185 to estimate monthly cost at ~4.3% over 25 years. Use our calculator for exact figures at any rate and term combination.
Not exactly — but it increases borrowing significantly. Two people each earning £35,000 can borrow £315,000 combined (£70,000 × 4.5), versus £157,500 for a single applicant. The benefit is proportional to the second applicant's income. Lenders also consider both applicants' credit histories — a poor credit score from either applicant can limit the options available.
Lenders assess whether you could still afford repayments if interest rates rose by 2–3 percentage points above the initial fixed rate. If your fixed rate is 4.3%, they check you can manage payments at 6.3–7.3%. This prevents borrowers from stretching to the limit only to face repayment difficulties when their fixed deal expires. Our stress test table shows exactly what your monthly payments would be at higher rates.