How much can I borrow?

Posted on 15 January 2019 by Danny kilgannon

I’m looking to apply for a mortgage but I’m not sure how much deposit I will need to put together?

Hi Danny,

To get a good choice of mortgage lenders and their products you really need a deposit of 25% or more. The amount that you will be able to borrow will depend on your level of earnings and the size of the deposit you are able to put down. With a small deposit of £10,000 you may only get around 3 times your annual income, whereas with a larger deposit you may get up to 4-5 times.

Lenders will look at how much of your income is committed to current outgoings and the proposed mortgage repayment, together with your overall credit standing before deciding how much they will lend to you.

Using our simple borrow amount calculator gives you an estimated amount.

However, Lender's systems and underwriting have developed and they have switched to using Affordability calculators to determine the amount they will lend. These take into account both your monthly income and outgoings to ensure that there is sufficient money left to cover your mortgage payments.

All these figures are for guidance only and it is not until you have completed a credit score, which takes into account your matrimonial status, the number of dependents you have, your previous credit history and numerous other factors that you will get a concrete answer to your question.

I recommend that you speak to an independent mortgage broker who can advise you on the maximum amount available to you in your own right and who can also explore other ways to obtain a larger mortgage, such as one of your parents acting as guarantor or taking a mortgage in joint names with your parents.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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