The most common way lenders estimate how much you can borrow is by multiplying your gross annual income. The standard range is 4 to 4.5 times your income — but this is a rough starting point, not a fixed rule.
| Gross Salary | At 4x Income | At 4.5x Income | At 5x Income |
|---|---|---|---|
| £30,000 | £120,000 | £135,000 | £150,000 |
| £40,000 | £160,000 | £180,000 | £200,000 |
| £50,000 | £200,000 | £225,000 | £250,000 |
| £60,000 | £240,000 | £270,000 | £300,000 |
| £80,000 | £320,000 | £360,000 | £400,000 |
For joint applications, lenders use the combined gross income. Two applicants earning £35,000 each gives a combined £70,000, producing a maximum of £280,000–£315,000 at standard multiples.
Some lenders — particularly those targeting professionals (doctors, lawyers, accountants) — will lend at 5x or even 5.5x income. The FCA restricts lenders from placing more than 15% of their mortgage book above 4.5x income, so higher multiple mortgages are less common but not impossible.
Income multiples are just the first filter. Every UK mortgage lender is required by the FCA to conduct a detailed affordability assessment, looking at your actual income and expenditure. This means your maximum borrowing depends on much more than just your salary.
Common mistake: Many buyers go to a bank and accept the first number they're given. Lenders vary significantly in what they count and how they model expenditure. Getting a mortgage in principle from two or three lenders (a "soft credit check" exercise) often reveals meaningful differences in borrowing capacity.
Even at the rate you're offered, lenders check that you could afford the mortgage if interest rates rose. The Bank of England removed its mandatory 3% stress test requirement in 2022, but most lenders now apply their own equivalent checks — typically modelling affordability at 2–3% above the initial rate.
This means if you're taking a 2-year fix at 4.5%, the lender may model your payments at 7%+ when deciding how much to lend. Monthly payments at 7% on £250,000 over 25 years are roughly £1,767 — versus £1,389 at 4.5%. If your take-home pay can't comfortably cover £1,767, you'll be limited to a smaller loan even if you could technically afford the current rate.
| Deposit | LTV (Loan to Value) | Typical Rate | Notes |
|---|---|---|---|
| 5% | 95% | Highest available rates | Limited lender choice; Mortgage Guarantee Scheme helps |
| 10% | 90% | More competitive | Wider lender choice; better rate bands |
| 15% | 85% | Good | Significantly better rates than 90% LTV |
| 25% | 75% | Very competitive | Most best-buy rates require 75% LTV or below |
| 40%+ | 60% | Best available | Maximum rate discount tier for most lenders |
Your deposit also affects your maximum loan: a 5% deposit on a £200,000 property means borrowing £190,000. At 4.5x salary, that requires earnings of £42,222. With a 10% deposit you'd borrow £180,000, requiring only £40,000 salary.
Enter your income, deposit and outgoings to see your estimated borrowing range — based on UK lender criteria.
Use the Affordability Calculator →Personal loans, car finance and credit cards all reduce your borrowing capacity. A car finance payment of £300/month can reduce your mortgage offer by £30,000–£60,000, depending on the lender's model. Clearing these before applying significantly improves affordability.
Many lenders count a percentage of your available credit limit (not just what you've drawn) as a potential liability. Reducing limits on cards you don't use actively can improve your assessed affordability.
More deposit means lower LTV, which unlocks better rates and sometimes higher income multiples. Some specialist lenders apply more favourable multiples at lower LTVs.
Adding a co-borrower doubles the income assessed. Even if the second applicant earns modestly, the combined income can significantly increase borrowing capacity.
Salary sacrifice (including pension contributions) reduces your official gross salary. Some lenders assess affordability on your reduced salary, which cuts borrowing capacity. Ask lenders how they treat salary sacrifice before committing — some add it back.
Anna earns £38,000 and has a £20,000 deposit. She has no outstanding debt and no dependants.
Income multiple range: £152,000 (4x) to £171,000 (4.5x).
Maximum property price: £152,000 + £20,000 = £172,000 to £191,000.
Monthly payment at £160,000 / 25 years / 4.5% rate: approximately £889/month.
Verdict: Achievable in many UK regions outside London and the South East. Consider a LISA to boost the deposit further.
Michael earns £45,000 and Laura earns £30,000. Combined: £75,000. They have £40,000 deposit.
Combined income multiple range: £300,000 (4x) to £337,500 (4.5x).
Maximum property: £340,000–£377,500. Monthly payment at £300,000 / 25 years / 4.5%: approximately £1,667/month.
They also have a combined car finance commitment of £450/month, which a lender's affordability model may reduce their maximum by £40,000–£50,000.
Verdict: Solid position. Clearing the car finance before application could unlock a further £40,000 in borrowing.
David is self-employed with average net profits of £52,000 over two years. Most lenders assess self-employed income on a 2-year average of SA302 figures.
Income multiple range: £208,000–£234,000. With a £30,000 deposit, maximum property: £238,000–£264,000.
Key issue: David needs 2–3 years of accounts. Some lenders require 3 years; specialist self-employed lenders may accept 1 year with a strong trading record.
Once you know your property price, calculate the stamp duty owed — including first-time buyer relief.
Use the Stamp Duty Calculator →