Working out how much mortgage you can afford is one of the first and most important steps in buying a home in the UK. Get this right and you'll avoid the disappointment of falling in love with a property you can't actually borrow enough to buy.
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Calculate my mortgage →The income multiple rule
The starting point for most UK mortgage lenders is a simple income multiple. Most lenders will offer between 4 and 4.5 times your annual gross income. So if you earn £40,000 per year, you could typically borrow between £160,000 and £180,000.
If you're buying with a partner, lenders generally combine both incomes. So a household earning £70,000 combined could borrow between £280,000 and £315,000 at standard multiples.
Affordability assessments go deeper than income
Modern mortgage lenders go much further than simply multiplying your salary. Since the Mortgage Market Review in 2014, lenders carry out detailed affordability assessments covering your full financial picture — monthly outgoings, existing debt repayments, spending habits, and stress testing against rate rises.
This means two people on exactly the same salary can be offered very different mortgage amounts depending on their lifestyle and financial commitments.
The deposit matters too
Your deposit directly affects how much you can borrow and at what rate. The larger your deposit as a percentage of the property value (your loan-to-value or LTV), the better the deals available to you.
- 95% LTV (5% deposit) — minimum most lenders accept, highest rates
- 90% LTV (10% deposit) — more lender choice, better rates
- 75% LTV (25% deposit) — significantly better rates
- 60% LTV (40% deposit) — access to the very best deals
💡 Example: On a £250,000 property, the difference between a 10% and 25% deposit could save you £30,000–£40,000 in total interest over a 25-year mortgage term.
How to increase how much you can borrow
- Pay down existing debts before applying
- Save a larger deposit to reduce your LTV
- Check and improve your credit score
- Reduce your outgoings in the months before applying
- Consider a longer term — 30 or 35 years reduces monthly payments
- Use a mortgage broker — a whole-of-market broker can access deals not available directly
Get a mortgage in principle first
Before seriously viewing properties, get a mortgage in principle (MIP) from a lender. This is a conditional offer based on a soft credit check that gives you a clear idea of how much you can borrow and shows estate agents you're a serious buyer. A MIP typically lasts 60–90 days.