The short answer: most UK lenders start from 4 to 4.5 times your gross annual income, or your combined income on a joint application. On a £40,000 salary that is £160,000 to £180,000. The lender then checks your actual income and outgoings, so the amount you are offered can be lower (or, with some lenders, higher). The mortgage calculator shows the monthly payment for any loan size.
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 Bank of England's Financial Policy Committee (FPC) limits mortgages at 4.5x income or more to 15% of new mortgages across the market as a whole. Under the current rules an individual lender may go above 15%, as long as the overall share stays within the limit, so higher multiple mortgages are less common but not impossible.
If you already know the size of mortgage you want, divide it by the income multiple instead. This gives the gross income a lender would usually look for at that multiple.
| Mortgage wanted | Income needed at 4x | Income needed at 4.5x |
|---|---|---|
| £150,000 | £37,500 | £33,333 |
| £190,000 | £47,500 | £42,222 |
| £250,000 | £62,500 | £55,556 |
For example, a £190,000 mortgage ÷ 4.5 = £42,222 of income. On a joint application this is the combined figure, so two applicants earning £21,111 each would reach the same total. If your own income falls short, some lenders will consider a guarantor or a family member's income to support the application. Criteria vary a great deal between lenders, so check with them or with a mortgage broker before relying on it.
The multiple is only the first filter. Debts and regular commitments, covered below, can bring the figure down, and the lender will also test whether you could still afford the payments if rates rose. To see what the monthly payment would be, try the mortgage calculator, and the mortgage stress test calculator shows the effect of a higher rate.
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. You can model the effect on your own numbers with our mortgage stress test calculator, which also explains what changed in 2022 and what lenders test in its place.
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 →Sources. The statutory and regulatory figures on this page are checked against FCA Handbook MCOB 11.6: responsible lending and affordability, FCA FG26/11: the Financial Policy Committee’s loan to income flow limit, GOV.UK: repaying your student loan and Bank of England: Bank Rate. Last checked 24 October 2026; figures apply to the 2026/27 tax year unless a different period is stated.