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Mortgage Affordability Calculator

Estimate how much you could borrow based on your income and outgoings. See monthly repayments and compare mortgage terms side by side.

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Enter your details and click calculate to see your mortgage affordability.

How Much Can I Borrow for a Mortgage?

Most UK lenders use an income multiplier of 4 to 4.5 times your gross annual salary to determine the maximum mortgage they will offer. If you earn £50,000, you could typically borrow £225,000. For joint applications, both incomes are usually combined before applying the multiplier.

However, the income multiplier is only the starting point. Lenders also conduct a detailed affordability assessment, looking at your monthly outgoings, existing debts, credit commitments, and living costs. High monthly outgoings can reduce the amount you are offered, even if the income multiple suggests you could borrow more.

Understanding Loan-to-Value (LTV)

Your loan-to-value ratio is the mortgage amount as a percentage of the property's value. A £180,000 mortgage on a £200,000 property is a 90% LTV. Lower LTV ratios unlock significantly better interest rates — the difference between 90% and 60% LTV can be 0.5–1% on the interest rate, saving thousands over the mortgage term.

Fixed vs Variable Rate Mortgages

A fixed-rate mortgage locks your interest rate for a set period (typically 2 or 5 years), giving you payment certainty. A variable rate — including tracker and discounted rates — can go up or down with the Bank of England base rate. Most UK borrowers choose fixed rates, especially when rates are volatile.

How Deposit Size Affects Your Mortgage

The minimum deposit most lenders accept is 5% of the property value. However, a 10% deposit opens up significantly more deals, and 15–20% typically gets you the most competitive rates. For buy-to-let mortgages, expect a minimum 25% deposit. First-time buyers may be eligible for government schemes such as the Lifetime ISA (25% bonus on savings up to £4,000/year) to help build a deposit.

FAQ
How much deposit do I need for a mortgage in the UK?
The minimum deposit is typically 5% of the property value. So for a £250,000 property, you would need at least £12,500. However, a 10-20% deposit will give you access to better interest rates and lower monthly repayments. Some lenders offer 95% LTV mortgages, but these come with higher rates.
What is a mortgage stress test?
Lenders are required to check that you could still afford repayments if interest rates were to rise. They typically stress-test at the lender's standard variable rate (SVR) plus 3 percentage points. This means you might be able to afford current repayments but still be declined because the stress-tested amount is too high relative to your income.
Should I choose a 25-year or 30-year mortgage term?
A shorter term means higher monthly payments but significantly less interest paid over the life of the mortgage. For example, on a £200,000 mortgage at 4.5%, a 25-year term costs roughly £38,000 more in interest than a 20-year term — but the monthly payments are £200 lower. Choose based on what you can comfortably afford each month, but try to pick the shortest term you can manage.
Can I get a mortgage if I am self-employed?
Yes, but you will typically need at least 2-3 years of accounts or SA302 tax calculations. Lenders usually average your income over 2-3 years, or use the lower figure. Some specialist lenders are more flexible with self-employed applicants. A mortgage broker who specialises in self-employed cases can help you find the right lender.
What is the difference between a mortgage broker and going direct to a bank?
A bank can only offer its own products. A whole-of-market mortgage broker can search deals from dozens of lenders, including some that do not deal directly with the public. Brokers can often find better rates, handle your application, and advise on which lender is most likely to accept your circumstances. Many brokers charge no fee to the borrower (they are paid by the lender).
What counts as "monthly outgoings" for affordability?
Lenders look at your committed monthly expenditure: credit card minimum payments, personal loans, car finance, student loans, child maintenance, and childcare costs. They also factor in estimated living costs based on ONS data. You should not include rent, as this will be replaced by the mortgage. The lower your committed outgoings, the more you may be able to borrow.

Ready to speak to a mortgage adviser?

A mortgage adviser can access deals from across the market, help with your application, and find rates you won't see on comparison sites. Find an FCA-authorised mortgage adviser near you.

Find a Mortgage Adviser

This calculator provides estimates only and does not constitute a mortgage offer or financial advice. Actual borrowing amounts depend on individual circumstances and lender criteria. Most lenders use an income multiplier of 4.5x but this can vary. Lenders also apply stress tests at higher interest rates. Your home may be repossessed if you do not keep up repayments on your mortgage. approval.co.uk is not authorised by the FCA and does not provide financial advice. Always consult a qualified mortgage adviser before making decisions about your mortgage.