Updated 7 August 2025

Mortgage Affordability Calculator UK - How Much Can I Borrow?

Calculate your maximum mortgage borrowing capacity based on income, expenses, and UK lender criteria. Includes stress testing and affordability improvements.

Affordability Calculator

Enter your financial details to check borrowing capacity

Your Annual Income (Gross)

Joint application

Include partner's income

Available Deposit

Affordability Results

£212,500

Maximum Mortgage Amount

£262,500

Maximum Property Price

4.25x

Income Multiple

12.0%

Debt-to-Income

Affordability Breakdown

Total annual income:£50,000

Monthly net income:£4,166.667

Monthly commitments:£2,000

Available for mortgage:£1,841.667

Maximum loan amount:£212,500

Stress tested at 7%: Lenders test affordability at higher rates. This calculation assumes rates could rise to 7% to ensure you can still afford payments.

Understanding UK Mortgage Affordability

How Lenders Assess Affordability

• Income multiples: Typically 4-4.5x annual income
• Debt-to-income: Existing debts should be under 30%
• Stress testing: Can you afford at rates 3% higher?
• Credit history: Affects rates and maximum lending
• Employment: Permanent roles preferred, self-employed assessed differently

Factors That Improve Affordability

• Larger deposit (better loan-to-value ratio)
• Higher credit score (access to better rates)
• Lower existing debt commitments
• Stable employment history (2+ years)
• Joint applications (combined income)

Common Affordability Mistakes

• Borrowing maximum amount without considering rate rises
• Not factoring in all monthly expenses
• Ignoring mortgage protection insurance costs
• Forgetting about maintenance and repair costs
• Not considering life changes (children, job changes)

Income Types Accepted

• Basic salary (usually 100% considered)
• Guaranteed overtime (usually 50-100%)
• Bonus payments (varies by consistency)
• Commission (usually averaged over 2-3 years)
• Self-employed income (averaged over 2-3 years)
• Benefits (some child benefits may count)

Deposit Impact on Borrowing

5% Deposit

Deposit needed:£13,125

Loan-to-Value:95%

Typical rate:5%

10% Deposit

Deposit needed:£26,250

Loan-to-Value:90%

Typical rate:4.5%

20% Deposit

Deposit needed:£52,500

Loan-to-Value:80%

Typical rate:4.2%

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Ready to Apply for Your Mortgage?

Now you know how much you can borrow, calculate your exact monthly payments and explore different mortgage scenarios.