Use our mortgage calculator and with just a few simple details, we can show you how much you could be eligible to borrow as well as breaking down your monthly repayments.
|Your home or property may be repossessed if you do not keep up repayments on a mortgage.|
How much can I borrow?
The amount you could borrow will largely depend on your income. However, mortgage lenders will also consider any financial commitments you may have, including outstanding loans, credit cards or debts.
*The borrowing amount we display is based on 4x income. Some lenders will use multipliers slightly lower or higher than this but we believe this represents a mid-point to give you a good indication of how much you may be able to borrow. In practice, lenders will base the maximum borrowing amount on an affordability assessment which takes into account your outgoings and committed expenditure. This may give a lower maximum loan amount.
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Find out how much you can borrow with our mortgage calculator
Our quick mortgage calculator* can give you a good indication of the amount you could borrow based on 4 x your income. But, ultimately, it’s down to the individual lender to decide.
As part of an affordability assessment, lenders will check your credit report to see how you’ve managed debt in the past. It’s a good idea to check your credit report and get it into shape at least six months before you apply for a mortgage.
The size of your deposit makes a difference too. The larger your deposit, the more equity you’ll have in the property and the more likely you are to get a better rate of interest.
If you can get an agreement in principle (AIP) from your chosen lender, it will give you an indication of how much they’re prepared to lend you. And while it’s not a guaranteed mortgage offer, it’s a helpful way of showing sellers you can afford to buy and are serious about doing so.
What mortgage can I afford?
When getting a mortgage, you’ll need to look at how the monthly payments will affect your budget and what you can afford to pay comfortably.
Our mortgage affordability calculator can help by showing you what your monthly payments would be for particular rates of interest, based on the value of the property and the size of your deposit.
You can adjust the interest rate, and also change the deposit amount in our mortgage calculator, to see what difference saving for a larger deposit could make.
When working out how much you could afford to borrow, don’t forget mortgage fees and possibly stamp duty, as well as the impact of potential life changes. If you add to your family, for example, or change jobs, would you still be able to afford your mortgage repayments?
It’s better to borrow an amount you can confidently pay back, than overstretch and find yourself struggling further down the line.
How do mortgage lenders work out affordability?
When carrying out a mortgage assessment, lenders typically will look at:
- How much you want to borrow
- Your deposit
- Your employment status
- Income and outgoings
- Any existing debts
- Your credit report.
When looking at your credit report, it’s not just your overall score that potential mortgage lenders consider. They’ll also look in detail at:
- Any other recent loan or credit applications
- How much of your income is used to pay debts
- Your credit utilisation ratio – this shows how much of the credit available to you is already being used
- Your payment history
- Your credit history.
Lenders may also look to “stress test” your ability to pay. For example, if you have a two-year fixed mortgage with a low introductory rate, could you afford the repayments when the mortgage returns to the standard variable rate?
What type of mortgage could I get?
The most common types of mortgages include:
- Fixed-rate mortgage – the interest rate is fixed for a set amount over a specific length of time. Once the fixed rate period comes to end, you’ll be automatically moved to your lender’s standard variable rate (SVR), which is typically more expensive.
- Tracker variable rate mortgage – monthly payments are in line with the Bank of England base rate, so could go up or down throughout the course of your mortgage term.
- Standard variable rate mortgage – the rate is set by your mortgage lender and can go up or down whenever they choose to change it. SVRs are typically set around 2% to 5% higher than the Bank of England base rate.
- Discount mortgage – this is typically offered as a discount on the lender’s SVR, not the Bank of England base rate. If you’re offered a discount of 1% for the first two years, your mortgage rate will be 1% lower than the lender’s SVR.
- Interest-only mortgage – you only pay back the interest each month. While monthly repayments are cheaper than a repayment mortgage, you’ll still owe the full amount you borrowed at the start. To pay off this type of mortgage, you’ll need a plan in place – either build up a savings pot or sell the property at the end of the term.
How much deposit do I need for a mortgage?
In an ideal world, as much as possible. A larger deposit means you’ll need to borrow less, so you’re likely to pay less interest overall.
Mortgage lenders will consider your loan-to-value ratio (LTV) – the amount you’re borrowing compared to the overall cost of the loan. Typically, the higher your deposit, the lower your LTV and the rate of interest you’ll be charged.
Some lenders have different rates for 100% mortgages, 95% mortgages, 90%, 85%, 80% and so on. It’s worth seeing if increasing your deposit, even by a few thousand pounds, could help you move down to a lower band and get a cheaper interest rate.
Read our guide on how to save for a mortgage deposit.
What mortgage can I get if I’m self-employed?
This will vary among lenders. When using our mortgage calculator, aim to get as close to what you think your annual salary would be.
It might also be helpful to use a mortgage broker. Brokers are more likely to know what kind of calculations mortgage providers make and which ones are more willing to lend to self-employed people.
Get more information about self-employed mortgages.
What our expert says...
“Whether you’re a first-time buyer or are looking to upsize, our mortgage calculator can give you a good indication of what you may be able to borrow. You can adjust the deposit amount, mortgage term and rate of interest to see how the differences could affect potential mortgage payments.
Just be aware that lenders have tightened their affordability criteria in recent years. While our calculator offers a ballpark figure on what you might pay for a mortgage, the actual amount will depend on your chosen lender and their assessment of your financial situation.”
- Daniel Evans, Mortgages expert
Frequently asked questions
How many times my salary can I borrow for a mortgage?
Most lenders will base the amount you can borrow on 4 to 4.5 x your salary. However, there are some lenders who will stretch to 5 x your salary.
How much do I need to earn to get a mortgage?
There’s not a ‘set amount’ you need to earn to get a UK mortgage. Instead, lenders will look at what you can afford to borrow on a case-by-case basis.
That said, some lenders will include a minimum of how much you need to earn before they’ll consider your mortgage application.
Should I take the maximum I can borrow?
It’s wise to only borrow an amount you feel comfortable with, as failing to meet your mortgage payments could result in hefty penalties or even having your home repossessed.
When deciding how much to borrow, it also makes sense to consider how your circumstances might change in the future. For example, starting a family, redundancy, a career break or one less income could affect your ability to cover your mortgage repayments.
Do mortgage calculators require a credit check?
No, our mortgage calculator simply uses the information you enter to calculate how much you might be eligible to borrow. You won’t even have to enter your name.
Only when you apply for a mortgage will you undergo a full credit check, which will be marked on your file.
What credit score do you need for a mortgage?
How much can I borrow if I have bad credit?
If you have bad credit, you may need to use a specialist lender who could cap the amount of money they’re willing to lend you at 70-80% of the property value. They may also ask for a larger deposit than someone with a good credit rating and charge a higher rate of interest.
A mortgage broker could help, as they’ll be familiar with lenders who are willing to offer bad credit mortgages. Ideally, do what you can to improve your credit rating before you apply for a mortgage.
How can I drop an LTV band?
You can drop an LTV band by increasing the amount of your deposit, either by saving more or through buying a cheaper property. LTV bands are often split into increments of 5% and you qualify for a different mortgage rate within each band.