How much mortgage can I afford?

By using the above mortgage calculator, you'll be able to see 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 you have under the age of 18

  • 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.

Alternatively, you can use the mortgage calculator to work out how much you can borrow based on the amount you could afford to pay towards your mortgage each month.

How do mortgage lenders decide what mortgage I can afford?

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 ask you to show bank statements and payslips to support your mortgage application.

Are there any other factors that affect how much I can borrow?

Before approving your application, lenders will scrutinise your finances to see if you can afford a mortgage. Whether anyone depends on you financially (not just children) and whether you are in permanent full time employment will play a part in this. Self-employed workers may find their mortgage choices more limited as their income can be variable.

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.

What mortgage can I get?

Once you know how much you could borrow, your next step is to compare mortgages by 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 - typically two, three or five years. Or you can choose a variable rate mortgage that typically tracks the Bank of England base rate. This means your monthly repayments could go up or down in line with movements in the base rate.

If you want a more precise figure or need help finding the cheapest mortgage interest rates, you can talk to an expert mortgage broker.

How can you get a bigger mortgage?

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:

  • Save 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 is how to save up a deposit.

  • Find a guarantor: If you are unable to save enough, some mortgages let you apply with a guarantor instead of a deposit. Your guarantor has to agree to cover your mortgage payments if you miss them.

  • Talk to a broker: Some lenders could give you a bigger mortgage than others, and brokers can work out which ones are mostly likely to lend you more. Contact a broker for advice on how to get accepted.

Last updated: 10 May, 2021