- Employment status, whether employed or self-employed
- Total gross income
- Regular expenses such as household bills
- Childcare costs
- Student loan repayments
- Credit history
- Debts
- Future circumstances
How Much Can I Borrow for My Mortgage?
On this page you’ll find our free residential borrowing calculator which helps you work out how much you could borrow on your mortgage. You’ll also discover information on mortgage eligibility and lender criteria.
If you’re looking to borrow money to purchase a property, we strongly advise that you speak to our mortgage advisers to understand how much you may be able to borrow and which lenders may be suitable for your situation.
Fill out this enquiry form and we’ll contact you to book a free call with one of our mortgage experts.
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Mortgage Borrowing Calculator: Estimate How Much You Could Borrow
Use our mortgage borrowing calculator to estimate how much you could borrow based on your income, outgoings, deposit or property value, dependants and preferred mortgage term.
Calculation complete
Maximum borrowing: —
This is an estimated range based on our experience with major UK lenders. One of our advisors will be able to help you find the right lender for you.
What does this mean?
We think that most lenders will lend you enough to buy a house up to — with your deposit, but you may be able to buy a house worth up to — with some lenders. A mortgage advisor will be able to help you find the right one.
We think that most lenders may lend you up to — for this property value; with some lenders you could borrow up to —. A mortgage advisor will be able to help you find the right product.
Estimated monthly payment
— /month
Your results could be…
Fill in the fields to calculate your mortgage affordability
How is this calculated?
This calculator run the details you enter through an affordability model that estimates how much you might be allowed to borrow, and provides two indicative borrowing limits: a more conservative figure and a riskier one.
Those figures are combined with the figures with your deposit or property value to describe what that could mean in terms of how much you could borrow or what sort of property price that might support.
It produces an illustrative repayment-style figure based on the higher of the two borrowing amounts, your selected term, and a fixed illustrative interest rate.
The payment is for guidance only and is not a mortgage offer; actual products, rates, and lender decisions will differ.
Next Steps
Speak to our team for a free consultation and more advice on what you can borrow.
Start with a Clearer View of Your Borrowing Options
Once you have an estimate from the calculator, the next step is to understand how lenders may view your application. Your borrowing amount can change depending on your deposit, income type, credit commitments, credit history and the lender’s criteria.
Our advisers can help you work out what may be realistic before you start viewing properties or making an offer.
1
Check how your deposit could affect your borrowing
Once you have used our mortgage borrowing calculator, you can also use our deposit calculator to understand how your deposit may affect your loan-to-value. A larger deposit can reduce your LTV, which may give you access to more mortgage options and potentially lower rates.
2
Check your credit score
Checking your credit score with at least one of the free credit reference agencies will show you where you stand and how lenders may view your application. If you have adverse credit events on your credit file this could limit the deals available to you
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Get advice from an independent mortgage broker
A mortgage broker like John Charcol can provide you with a more accurate idea of how much you can borrow and the different mortgage options available. We’ll be able to direct you towards the lender with the best deal for your circumstances
How Lenders Work Out How Much You Can Borrow
How much you can afford to borrow for a mortgage typically depends on your income, expenses, LTV (loan-to-value), credit score and more. The maximum LTV offered by most lenders is 95% which means you’ll be required to provide at least 5% of the property’s purchase price in deposit. There are a few 100% mortgage products on the market, but you’ll have to meet the specific criteria for that product – e.g. family springboard, track record mortgage, etc. When you apply for a mortgage, your affordability is worked out in 2 steps.
1. How much you can borrow based on your income
Firstly, the lender will typically have a maximum income multiple which will determine the amount you may be able to borrow up to, for example 4.5x your annual income. You can use our calculator below to work out your potential maximum borrowing.
2. How much you can afford to repay
Secondly, the lender will conduct an affordability check to determine how much they can actually lend to you and what repayments you can afford. This can impact things like your deposit requirements and mortgage term.
The lender will assess your income and outgoings as well as other factors, including your:
It’s worth remembering how much mortgage you can borrow and how much you can afford may differ. Therefore, it’s a good idea to consider whether you can comfortably afford the repayments on a large mortgage. A good rule of thumb is to avoid spending more than 30% of your income on mortgage repayments. Any more than this could leave you without money to do other things, such as home improvements, build up your savings or go on holiday.
Next steps after estimating your mortgage borrowing
Our mortgage borrowing calculator can give you a useful starting point, but your actual borrowing amount will depend on lender criteria, your income, outgoings, deposit, credit profile and mortgage term.
You may also want to use our repayment calculator to understand what your monthly payments could look like once you have a mortgage amount and interest rate in mind.
Looking for a specific type of mortgage? You can also explore:
Mortgage Eligibility: What Do Lenders Look At?
Lenders look at a range of factors before deciding how much you may be able to borrow. These include your income, deposit, credit history, regular commitments and the mortgage term.
1
Deposit and LTV
Your deposit is the amount you have to put down to secure your property. Normally a deposit of at least 5% – 10% is required to secure a mortgage. However, there are a few providers offering first-time buyer mortgage deals at 100% LTV (loan-to-value).
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Income
It stands to reason that lenders will be more willing to let you borrow a greater amount of money if you have more disposable income. If you’re buying with a partner or even a friend, your joint income and expenditure will be taken into consideration.
3
Age and mortgage term
The older you are, the less time you have to pay off your mortgage and this means your monthly repayments will be higher on a repayment mortgage.
4
Electoral roll registration
Your mortgage lender can ascertain some information about you if you are, or have been, registered to vote. Being on the electoral roll is regarded favourably by lenders.
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Credit history
Your ability to borrow money is subject to a good credit rating. Lots of factors can affect your credit rating, such as credit card repayments and timely bill payments so it’s a good idea to keep on top of everything well in advance of applying for a mortgage. If you’re not sure what your credit rating is, you can check using websites such as Experian and Equifax.
6
Regular spending and credit commitments
Regular spending, loans, credit cards, car finance and other commitments can affect how much disposable income a lender believes you have available for mortgage repayments.
Mortgage Borrowing FAQs
What Percentage of Salary Can You Borrow for a Mortgage?
While the amount you can borrow for a mortgage will vary depending on your circumstances and the lender, you can typically expect to borrow up to 4.5x your annual salary/income.
For example, if you earn £30,000, you may be eligible for a mortgage of £135,000. Some lenders may use a higher or lower income multiple. It’s important to remember that lenders will consider several other factors besides salary when assessing how much you can afford, such as your age, monthly expenses, employment status and deposit size.
How Much Deposit Do You Need for a Mortgage?
When getting a mortgage, you’ll typically need a minimum deposit of 5% to get a mortgage with an LTV of 95%. If you’re able to provide a deposit of around 10%, 15%, or 20%, you’ll have access to better rates and deals which could make your mortgage cheaper in the long term. The cheapest mortgage deals available usually apply to those with a deposit of at least 40%.
There are some no deposit mortgage products available from a few lenders as well another type of product called a Family Springboard mortgage, but to be eligible you’ll have to meet their specific criteria.
What Are Mortgage Interest Rates?
Mortgage interest rates are what lenders charge people for borrowing money. They’re generally expressed as an annual percentage rate or APR. The lender adds the interest rate to the principal amount borrowed, which you generally then pay back over the life of a repayment mortgage with monthly sums.
Interest rates typically vary depending on your credit score, deposit size, mortgage term and market conditions. Fixed rate mortgages have a fixed interest rate for a specific period, usually 2 – 5 years before you go onto your lender’s SVR (standard variable rate) which is often much more expensive. Variable interest rates can fluctuate, and the amount of interest you pay on your mortgage can go up and down. You would typically remortgage or take out a product transfer when your fixed rate comes to an end to avoid paying more interest than you have to. Our mortgage advisers can help you arrange a remortgage or product transfer up to 6 months before the end of your deal.
Taking the stress out of finding the best mortgage rate
Now you know how much you can borrow on a mortgage, why not learn a bit more about the mortgage application process in our video?
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