How much can you borrow for a mortgage?
Most UK lenders start from your income. As a rule of thumb, the maximum loan is a multiple of your combined gross annual income — typically around 4 to 4.5 times income, with some lenders stretching to 5 or 5.5 times for higher earners or professions they favour. Bank of England policy limits the share of a lender's new mortgages that can be at 4.5 times income or more, which is why the higher multiples are less common and reserved for stronger applications.
Why the multiple isn't the whole story
A lender then runs its own affordability assessment. It looks at your regular outgoings, debts such as loans, credit cards and car finance, childcare, dependants and more, and checks that you could still afford the payments if interest rates rose. Two applicants on the same salary can be offered very different amounts. Larger existing commitments, more dependants, or a shorter term will generally reduce what a lender will offer.
Worked example: two applicants earning £50,000 and £30,000
- Combined income: £80,000.
- At 4.5 times income: £80,000 × 4.5 = £360,000 maximum borrowing.
- With a £40,000 deposit, that supports a purchase price of about £400,000 (90% LTV).
- Repayment mortgage over 25 years at 5%: about £2,105 a month. Stress-tested at 8% (3 percentage points higher) the payment would be about £2,779 a month.
- At 4 times income the maximum would be £320,000; at 5 times it would be £400,000.
Ways to increase how much you can borrow
- Pay off or reduce credit cards, loans and car finance before applying.
- Choose a longer term (this lowers the monthly payment, though you pay more interest overall).
- Add a joint applicant whose income can be counted, where appropriate.
- Increase your deposit, which lowers the LTV and can open up better rates.
- Speak to a broker who knows which lenders accept your type of income, such as self-employed or contract earnings.
What to check next
Once you have a borrowing figure, see how it looks as a monthly payment with the mortgage repayment calculator, check your deposit against the property price with the LTV calculator, and remember to budget for stamp duty on top of the deposit. If you are a limited company director, your income for mortgage purposes may differ from your take-home — see the salary and dividend calculator.
This calculator is a simple, transparent illustration of income multiples. It is not a lending decision or a mortgage offer, and no lender is bound to lend you the figure shown.