Mortgage Affordability Calculator UK 2026
See how much you could borrow based on your income, deposit and monthly commitments — with monthly repayments stress-tested at higher rates, the way lenders check them. Free, instant, no sign-up.
| Income | |
| Combined annual income | £35,000 |
| Annual commitments | £0 |
| Income used for affordability | £35,000 |
| Borrowing estimate | |
| Cautious (4× income) | £140,000 |
| Typical (4.5× income) | £157,500 |
| Upper (5× income) | £175,000 |
| Property & repayments | |
| Your deposit | £30,000 |
| Max property price (typical) | £187,500 |
| Loan-to-value (LTV) | 84% |
| Monthly repayment (4.5%, 30 yrs) | £798 |
| Stress-tested (7.5%) | £1,082 |
| Repayment as % of gross monthly income | 27% |
How mortgage affordability is calculated in the UK
UK lenders start with an income multiple: most will lend between 4 and 4.5 times your gross annual income, with some stretching to 5× or even 5.5× for higher earners, strong credit profiles, or certain professions such as doctors, solicitors and accountants. For joint applications, the multiple is applied to your combined income.
On top of the multiple, lenders run an affordability assessment. They look at your committed outgoings — loan and car finance repayments, credit card balances, childcare, maintenance payments — and reduce what they'll lend accordingly. This calculator approximates that by deducting your annual commitments from your income before applying the multiple, which is why clearing debts before applying can meaningfully increase your borrowing power.
Variable income is treated more cautiously. Bonuses, overtime and commission are often counted at only 50–100% of their value, and usually only with a track record of receiving them. If a big slice of your pay is variable, expect lenders to differ significantly in what they'll offer.
Related: Salary sacrifice calculator | How to budget your salary
Deposit size and loan-to-value (LTV)
Your loan-to-value ratio is the mortgage amount as a percentage of the property price. A £180,000 mortgage on a £200,000 home is 90% LTV. The lower your LTV, the better the interest rates available to you — lenders price risk in bands, and each 5% you move down typically unlocks cheaper products.
| LTV band | Deposit | What it means |
|---|---|---|
| 95% | 5% | Minimum for most residential mortgages; fewest products, highest rates |
| 90% | 10% | Typical first-time buyer territory; noticeably better choice |
| 85% | 15% | Wider product range, better rates |
| 75% | 25% | Competitive rates from most lenders |
| 60% | 40% | Best rates on the market |
A bigger deposit does two things at once: it reduces how much you need to borrow, and it cuts the interest rate on what you do borrow. If you're within reach of the next band down, it's often worth waiting to save the difference.
What is a mortgage stress test?
Lenders don't just check you can afford the repayment at today's rate — they check you could still pay if rates rose. Affordability is assessed at a higher notional rate, commonly around 2–3 percentage points above the product rate depending on the lender's approach. This calculator shows a stressed repayment at your chosen rate plus 3 percentage points as a conservative guide.
The stress test is usually what actually limits borrowing for people with thinner margins — you might pass the income multiple comfortably but fail the stressed repayment check. If the stressed monthly payment would push you above roughly 40–45% of gross monthly income, expect lenders to offer less than the headline multiple.
How to increase how much you can borrow
Clear ongoing commitments first. Monthly debt repayments are deducted from your affordable income before the multiple is applied. Paying off a £200/month car finance agreement can add thousands to your maximum borrowing — often far more than the payoff cost suggests.
Apply jointly. Two incomes at 4.5× nearly always beats one income at 5×. Both applicants' credit histories are checked, so make sure both files are clean before applying.
Check your credit file before lenders do. Errors, forgotten defaults, and unregistered addresses on the electoral roll all drag down what you're offered. Review your file with the main credit reference agencies several months before applying.
Consider the term trade-off. A longer term lowers the monthly repayment, which can help you pass affordability checks — but you'll pay substantially more interest over the life of the mortgage. Use the term selector above to see the monthly difference.
Tidy your bank statements. Lenders review recent statements. Regular gambling transactions, frequent overdraft use, and missed payments in the months before an application all hurt. Aim for three clean months before you apply.
Mortgage affordability FAQ
How much can I borrow for a mortgage in the UK?
Most UK lenders offer between 4 and 4.5 times your annual income, with some going to 5 times or more for higher earners or certain professions. Monthly commitments reduce the amount, and every lender applies its own affordability checks on top.
What income multiple do UK mortgage lenders use?
The typical multiple is 4.5× gross annual income, applied to combined income for joint applications. Some lenders offer 5×–5.5× for applicants with higher incomes or strong credit profiles.
How much deposit do I need?
The practical minimum is 5% of the property price (95% LTV), though choice is limited and rates are higher at that level. A 10% deposit opens up significantly more products, and rates improve with each LTV band below that.
What is a mortgage stress test?
Lenders check you could still afford repayments at a rate typically 2–3 percentage points above your product rate. If the stressed repayment stretches your budget too far, they reduce what they'll lend regardless of income multiples.
Do credit cards and loans affect how much I can borrow?
Yes. Ongoing commitments are deducted from your affordable income before lenders apply their calculations. Clearing debts before applying is one of the most effective ways to increase your borrowing power.
How accurate is this calculator?
It's a realistic planning estimate based on standard income multiples and repayment maths. The final figure depends on the individual lender's criteria, your credit history and the property itself. Get a Decision in Principle from a lender or broker before house hunting.
Saving for a deposit? Track it in earmarkIQ
The gap between the deposit you have and the deposit you need is a savings problem — and that's exactly what earmarkIQ is built for. Connect your bank accounts via FCA-regulated Open Banking, set a house deposit goal, and earmarkIQ tracks your progress automatically while its payday allocation planning tells you exactly how much is safe to put away each month.
The AI also finds the money you didn't know you had: subscription detection flags recurring payments and price rises, and spending analysis shows exactly where each month goes — so you can redirect it to the deposit instead.
Once you have bought, earmarkIQ keeps tracking the property: add your address for an estimated value that moves each month with the official UK House Price Index, enter your mortgage balance, and see your equity and loan-to-value build inside your net worth. See how property valuation works.
Contains HM Land Registry data © Crown copyright and database right 2026. Licensed under the Open Government Licence v3.0.
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