Lenders I work with include
HTG Mortgages
How Much Can I Borrow?
Mortgage Borrowing Calculator
Most lenders will lend around 4 to 4.5 times your annual income, but the exact figure depends on your outgoings, credit commitments and deposit size. The calculator below gives you a quick estimate and a property price to start looking at. If you’re self-employed or paid a day rate, lenders count your income differently, so the multiple alone won’t tell the full story. Once you have a figure in mind, the First-Time Buyer Guide and Mortgage FAQs cover the next steps, and the Stamp Duty Calculator and Overpayment Calculator help you plan the full picture.
How much could I borrow?
A quick guide to the mortgage size most lenders would consider, based on your income. Put your figures in and it updates as you type.
£
Before tax. Include regular overtime or bonus if it is guaranteed.
£
Leave blank if you are buying alone.
£
Loans, car finance, card payments, childcare, maintenance.
£
Optional. Adds a property price to the result.
You could borrow around
£202,500
How that is worked out
This uses 4.5 times your income, which is where most lenders start. Some will go to 5 or 5.5 times for higher earners, certain professions or bigger deposits, and some will lend less if you have commitments, variable income or a short credit history. Every lender also runs its own affordability check on your actual outgoings, so the figure here is a starting point rather than an offer. If you want to know what you could really borrow, ask me and I will check it properly.
HTG Mortgages Limited 1017945 is an Appointed Representative of Switch Financial Network, who is authorised and regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.
Want your real figure?
A calculator can only do the standard sums. Your real figure depends on which lender suits your situation, some go further than others, and that is the bit I check. Leave your first name and mobile and I will come back with a proper answer.
You’ll speak to me, Harry, not a call centre.★★★★★ 5.0 on Google
Figures are for illustration only, based on the assumptions shown, and are not a quote or a guarantee of what you can borrow or what a lender will accept. Lender criteria and rates change often. Read the full important information.
Access your free comprehensive credit report.
By clicking the button below, you can access your full multi-agency credit report via checkmyfile, which includes data from Equifax, Experian, TransUnion, and Crediva.
Once you click, you’ll be redirected to their site where you can register and download your credit report for free during the initial 30-day trial period*. You can cancel anytime within that period without charge, but if you decide to continue, checkmyfile will charge £14.99 per month thereafter.
This report gives us valuable insight into your credit history, helping us at HTG Mortgages to offer you tailored advice and recommendations based on your situation.
Please note that lenders won’t use this report for your application; they will conduct their own credit checks. Ready to move forward? Get a mortgage quote or find out about remortgaging.
How lenders work out how much you can borrow
The calculator above uses an income multiple, which is where every lender starts. It is not where they finish. Three things decide the real figure.
1. The income multiple
Most lenders cap lending at 4.5 times your annual income. A growing number go to 5 times, and a few go to 5.5 times for higher earners, certain professions or borrowers with a larger deposit. The same income can produce a difference of tens of thousands between two lenders, which is the single biggest reason to compare rather than go to your own bank.
2. Affordability
The multiple sets the ceiling. The lender then checks whether you can pay the mortgage each month after your actual outgoings: loans, car finance, credit cards, childcare, maintenance, and a standard allowance for living costs. Two people on the same salary can get very different figures because one has £400 a month of car finance and the other does not.
3. The stress test
Lenders check the payment not just at today’s rate but at a higher notional rate, to make sure you could still pay if rates rose. A longer fixed rate sometimes gets a gentler stress test, which is why a five year fix can occasionally let you borrow more than a two year one.
A worked example
Take a couple earning £45,000 and £30,000, so £75,000 between them, buying in Hampshire with a 10% deposit and no other debts.
- At 4.5 times income: £337,500
- At 5 times income: £375,000
- At 5.5 times income, where available: £412,500
Now add £350 a month of car finance and a £4,000 credit card balance. The multiple has not changed, but the affordability check knocks the 4.5 times figure back to somewhere around £300,000 with most lenders, because that £350 a month is committed before the mortgage is paid. Clear the car finance before applying and the full figure usually comes back.
What I see most often: people are quoted a figure by their bank, assume that is the market, and either stretch to a smaller house than they needed to or give up. A second lender with a 5 times multiple and a kinder view of overtime is very often the difference. Figures above are illustrative; the lender’s own assessment decides.