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How Much Can I Borrow?



Find out how much you could potentially borrow for your mortgage with our user-friendly mortgage calculator. For a personalised assessment of how much you could borrow, simply request a call back or call us now on 0800 980 8777 and we would be happy to help you.

Find out how much you could borrow

Applicant 1: Annual Income (Pre-tax)
£
Applicant 2: Annual income (Pre-tax)
£
You may be able to borrow a maximum loan amount between: £405000 - £495000

For most people looking for a mortgage nowadays the answer is more flexible - or complex, depending on the way you look at it. Either way, it may mean you borrow more than you expected. That's where the advice of a specialist independent mortgage broker can prove invaluable.

Discuss your mortgage requirements with an advisor
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How Much Can I Borrow? Mortgage Calculator

Important information on how our calculator works

The above calculations are a guide only and are not guaranteed nor should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. Please make an appointment to receive mortgage advice suitable for your needs and circumstances.

All mortgages are subject to the applicant(s) meeting the eligibility criteria of lenders. Loans are subject to status and valuation and are not available to persons under 18 years of age. Written quotations are available from individual lenders. For secured loans, the lender will require a charge on your property and in the case of endowment mortgages, an endowment/life policy for the amount of the advance and a charge over the property. For interest-only mortgages, the above calculations do not take into account the cost of any endowment, pension, or other savings plan being used to repay the loan. In addition, the figures shown in respect to both repayment and interest-only mortgages do not include the cost of additional life cover. Your home may be repossessed if you do not keep up repayments on your mortgage.

Mortgage borrowing calculator

When taking out a mortgage, you will want to aim to secure enough finance for your property without burdening yourself too much with the repayments. The mortgage calculator above is designed to provide you with a quick estimate of how much you could potentially borrow for your mortgage however, for personalised advice it is best to speak with an expert consultant.

How much can I borrow

How much can I afford to borrow for my mortgage?

For many years, the simple answer to the question ‘how much can I borrow’ was ‘a multiple of your income as shown on your P60 or payslip’. Some mortgage calculators, high street lenders and price comparison websites still quote a basic formula like this, even when giving guidance on the amount that a self-employed professional or entrepreneur might reasonably expect to borrow.

Nowadays there are a multitude of factors at play when calculating how much you can borrow on a mortgage including income, deposit size, employment status, family setup and existing debts. Our expert consultants can help you assess your financial situation and provide personalised advice to ensure you choose a mortgage that aligns with your budget and financial goals.

What is a mortgage affordability calculation?

A mortgage affordability test is a calculation made by the lender to determine how much they are willing to let you borrow for a mortgage.

How do lenders calculate mortgage affordability?

To assess affordability for a mortgage, the lender will run their calculations based on key variables such as annual income and financial outgoings. This test is not the same as a credit review and credit score, although this may influence the outcome.

Since the 1st of August 2022, the Bank of England removed their mortgage affordability test, offering lenders discretion on how they calculate affordability internally. While this may have been intended to offer lenders more flexibility in their internal processes to respond to the external lending environment, there has been a reduction in transparency in how affordability is calculated across lenders. It is entirely possible you could pass the affordability requirements with one lender and fail with the next, depending on their internal calculations and processes.

Affordability calculators have become more stringent in response to high Consumer Price Index (CPI) inflation and cost-of-living data from the Office of National Statistics (ONS). Simultaneously, lenders have to stress at higher rates in light of mortgage rates and lender’ Standard Variable Rates (SVRs) increasing.

What factors impact how much I can borrow for a mortgage?

There are several basic factors that influence how much you can borrow, including:

  • Your total income (salary, commission, and bonus) including the income of anyone with whom you are buying
  • The deposit you can afford (lenders apply maximum loan amounts when your deposit is a relatively small percentage of the value of the property)
  • Your financial outgoings – particularly regular outgoings which affect your ability to repay the mortgage on a monthly basis
  • Your credit history – lenders will want to assess how reliable are you at repaying debts
  • The type of mortgage you require – residential or buy-to-let, repayment or interest-only
  • Whether you are employed, self-employed, a UK resident, or a foreign investor
  • How many children/dependents that you have
  • Your age or desired/maximum mortgage term

How much deposit do I need for my mortgage?

The deposit needed for your mortgage is influenced by several factors including the property’s value and the type of mortgage you’re seeking. As a general rule, lenders prefer a higher deposit as it reduces their risk. In return for a higher deposit, you may be able to receive a more preferential interest rate and higher borrowing amounts. The standard minimum deposit is often around 5-10% of the property’s value. Our consultants can guide you on the deposit requirements based on your specific circumstances and the type of mortgage you require.

How much do I need to earn to get a mortgage?

The level of income needed to secure a mortgage will depend on factors such as your desired loan amount, existing debts, and the lender’s criteria. As a rough guide to how much income you will need for a certain mortgage amount is to divide the mortgage amount by 4.5 and 5. It is important to note that there are other factors that impact the borrowing amount than purely income alone. A mortgage broker can provide detailed insights into the income requirements based on your financial profile and the type of mortgage you’re considering.

How much can I borrow if I am self-employed?

Being self-employed may impact the way lenders assess your borrowing capacity as they often consider your business income, expenses, and overall financial stability. Self-employed individuals are likely to face more challenges securing a mortgage compared to a full-time permanent employee however, the primary hurdle is often their lack of awareness about available options. These challenges most commonly involve being able to prove a steady flow of income, paying yourself too low of a salary, or trading for a short period.

Self-employed individuals may find mainstream lenders are inflexible to meet their borrowing needs however, thankfully there are specialist lenders who offer more flexibility in such situations. Our expert consultants specialise in assisting self-employed individuals navigate the mortgage process. By analysing your business finances, we can help you determine the maximum amount you can borrow and guide you through the application process tailored to your unique situation.

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