Our mortgage calculator will help you work out how much you can borrow when applying for a mortgage.
All you need to do is enter the following information:
Who is applying for the mortgage (just yourself or two of you)
Your annual income
Your guaranteed bonuses or overtime (if applicable)
How much you owe on credit cards, loans and overdrafts
How many children under the age of 18 you have
How much you have saved for a deposit
We'll then show you approximately how much you can borrow for a mortgage. We work this out by multiplying your income by up to five times. This will also tell you the maximum property price that you can afford.
Once you’ve worked out the maximum amount you might be able to borrow based on your income, you should consider whether you can comfortably afford to meet the monthly repayments or whether you will find it a stretch.
To help you with this, you can use our mortgage calculator to work out how much you can borrow based on the amount you could afford to pay towards your mortgage each month, rather than based on your income.
The method we use to calculate how much mortgage you can get is similar to how mortgage lenders decide if they will accept your application. However, lenders also take into account other factors, such as:
Your credit record - the better your credit score, the more likely you are to be accepted for the best deals
Your debt levels
The amount you spend on household bills, such as gas and electricity, broadband and food
The amount you spend on holidays and leisure activities
Lenders will also ask you to show bank statements and payslips to support your mortgage application.
Before approving your application, lenders will scrutinise your finances to see if you can afford a mortgage. They will look at whether anyone depends on you financially and whether you are in permanent full-time employment. Self-employed workers may have more limited mortgage choices because their income often varies.
As well as assessing whether you could afford a mortgage now, lenders will also stress test your finances to check whether you would still be able to afford your mortgage if interest rates increased.
Once you know how much you could borrow, your next step is to compare mortgages using our comparison service.
You'll be able to choose from fixed-rate mortgages – where the interest rate and your repayments remain the same for the term of the deal, which is typically two, three or five years. Alternatively, you can choose a variable-rate mortgage that normally tracks the Bank of England base rate. The tracker element means that your monthly repayments go up or down in line with movements in the base rate.
If the results shown on the mortgage borrowing calculator are too low to buy the property you want, there are a number of options open to you. These include:
Saving a bigger deposit: If the mortgage loan you can get only covers 80% of the property you want to buy, you could afford it with a 20% deposit. Here are 7 ways to save up a deposit.
Talking to a broker: Some lenders could give you a bigger mortgage than others, and brokers can work out which ones are most likely to lend you more. Contact a broker for advice on how to get accepted.
Last updated: 11 December, 2021