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Borrowing capacity calculator

Estimate the maximum mortgage you can borrow from your monthly income, existing commitments, target rate and term.

Result
£122,558
Borrowing capacity · Max monthly payment : £850

About this tool

Why use this tool

Your mortgage borrowing capacity is the maximum loan a UK lender will offer based on your income, outgoings and the FCA's affordability rules. Knowing it before viewing properties helps you set a realistic budget and demonstrates commitment to estate agents in competitive markets. Lenders still stress-test affordability against their own internal rate, typically around 6-8 % depending on the lender and product. The loan-to-income limit that had kept most borrowing near 4-4.5× annual income was eased from 2025, and several major lenders now offer 5× to 5.5× as standard, with 6× to 6.5× available to some borrower profiles — check current criteria with a broker rather than assuming a fixed multiple.

How it works

The tool applies a maximum housing outgoing of about 35 % of net monthly income, minus existing credit commitments (car finance, student loans, credit cards). That figure is converted into a mortgage capital using the standard amortisation formula at the current representative rate (around 5.6 % for a 5-year fix as of early September 2026, per Moneyfacts data).

Real example

A single applicant earning £45,000 gross (£2,900 net/month) with a £150/month car finance can support about £865/month in mortgage payments. Over 25 years at 5.6 %, that supports a loan of roughly £139,500. With a 15 % deposit of about £24,600, the property budget reaches roughly £164,000. This affordability-based figure often lands well below a simple income-multiple estimate, which is why lenders apply both tests.

Practical tips

Boost your deposit to 15 % or more to access much better rates — 90 % LTV deals cost roughly 0.5 % more than 75 % LTV. Check your credit file for free via Experian, Equifax and TransUnion. Register on the electoral roll — lenders check it. First-time buyers should explore the Lifetime ISA (25 % government bonus, up to £1,000/year) and shared ownership. Consult a whole-of-market mortgage broker (FCA-authorised) — brokers access deals not offered direct.

Disclaimer

This is a guide only. Actual lending decisions depend on credit history, employment status, property valuation and individual lender criteria. Your home may be repossessed if you do not keep up repayments on your mortgage. Seek advice from a qualified adviser (FCA-registered). This tool is not regulated financial advice.

Frequently asked questions

How much can I borrow for a UK mortgage?⌄
The loan-to-income limit that used to keep most lending near 4-4.5 times annual income was eased from 2025, and several major lenders now offer 5 to 5.5 times as standard, with 6 to 6.5 times available to some borrower profiles (such as certain professionals). Joint applications combine both incomes, though the multiple applied may be slightly lower. Lenders then run an affordability assessment on your actual spending, so your realistic maximum is often below the headline multiple — check current criteria with a broker rather than assuming a fixed number.
What is a mortgage affordability stress test?⌄
Lenders check that you could still afford repayments if you moved onto a higher rate, testing your budget against their own stress rate — typically around 6-8% depending on the lender and product, rather than a simple fixed margin above your quoted rate. This is why your approved amount can be lower than a simple income-multiple estimate suggests, particularly on tracker or short fixed-rate deals.
How much deposit do I need in the UK?⌄
The minimum deposit is usually 5% of the property price, though 95% loan-to-value deals come with the highest interest rates. A 10% deposit widens your choice considerably, and 25% or more unlocks the best rates available. Alongside the deposit you should budget for Stamp Duty, solicitor fees, survey costs and moving expenses.
Do credit commitments affect my borrowing capacity?⌄
Yes. Credit cards, car finance, personal loans and Buy Now Pay Later agreements all reduce your assessed affordability. Lenders also consider committed costs such as childcare, nursery fees and travel. Clearing or reducing revolving credit balances several months before applying usually increases the amount a lender will offer.
Can self-employed applicants borrow the same amount?⌄
Self-employed applicants can access the same income multiples but must evidence their income differently, usually with two to three years of accounts or SA302 tax calculations. Lenders typically average the last two years' profits, or use the lower figure if income is declining. Contractors may be assessed on day rate, which can be more generous than accounts-based assessment.

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