How much can I borrow?

Posted on 20 March 2011 by lynda schofield

I am looking to get a mortgage for a bigger property.  I earn £23,000 per annum and I have £100,000 equity in my current home.  How much would I be able to borrow?


Using the simple borrow amount calculator on this website gives you an amount of £92,000. This is based on a multiple of 4 x your earnings.

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. A quick round of High Street Lender's websites gave a range of between £74,000 - £110,000.

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.


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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