How to use the Mortgage Affordability Calculator
- 1 Enter your income and any partner income.
- 2 Choose an income multiple, usually 4.5×.
- 3 Enter your deposit.
- 4 Enter the rate and term.
Worked example
A couple earning £45,000 and £35,000 with a £40,000 deposit. At 4.5 times income they could borrow about £360,000, giving a budget of £400,000 at 90% LTV. At 4.5% over 25 years the payment is about £2,001 a month, rising to about £2,660 if rates went to 7.5%.
Features
Income multiples
4× to 5.5×, as used by UK lenders.
Property budget
Mortgage plus deposit.
Rate check
Payment if rates rise by 3%.
When to use it
House hunting
Set a budget before viewings.
Joint buyers
Combine incomes.
Deposit planning
See how LTV affects rates.
Remortgaging
Check what you might borrow now.
Frequently asked questions
How much can I borrow?
Most lenders lend up to 4 to 4.5 times income, and some up to 5.5 times for higher earners or certain professions.
What is loan-to-value?
The mortgage as a percentage of the property value. Lower LTVs get better rates.
How do lenders check affordability?
They look at income, outgoings, debts and credit history, and test whether you could pay at a higher rate.
How big a deposit do I need?
At least 5%, but 10% to 25% gets better rates.
Does stamp duty matter?
Yes. Budget for stamp duty, legal fees and surveys.
Do bonuses count?
Some lenders count part of regular bonuses or overtime.
What about student loans?
Lenders include student loan repayments as outgoings.
Should I borrow the maximum?
Not always. Leave room for rate rises and other costs.
What is a mortgage in principle?
A lender's initial view of how much it may lend, based on a soft credit check. It helps when making offers.
Can I get a 95% mortgage?
Yes. Several lenders offer 95% LTV mortgages, and there is a government-backed scheme for some first-time buyers.
Are fixed or tracker rates better?
Fixed rates give certainty for 2 to 5 years. Trackers follow the Bank of England base rate.
How long can a mortgage term be?
Up to 35 or 40 years with some lenders, which lowers payments but adds interest.
Do I need a broker?
Not always, but brokers can find lenders that suit your income and credit.
What costs come on top of the deposit?
Stamp duty above the relief thresholds, solicitor fees, a survey, mortgage arrangement fees and moving costs, often several thousand pounds.
Does my credit score matter?
Yes. A better credit record gets you more lenders and lower rates. Check your report before applying.
How do lenders treat self-employed income?
Most want two years of accounts or SA302 tax calculations, and average your profits.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated