The simplest way lenders estimate how much you can borrow is by multiplying your annual income. Most mainstream lenders offer between 4× and 5.5× your gross annual income, depending on your circumstances.
Income multiples are a guideline, not a guarantee. Your actual offer will depend on a full affordability assessment including your outgoings.
Since 2014 (Mortgage Market Review), all UK mortgage lenders must stress-test your ability to repay if interest rates rise. The Bank of England previously mandated lenders stress-test at 3% above your mortgage rate, but this requirement was relaxed in 2022 — though most lenders still apply their own stress tests.
In practice, a lender will check that you can afford the monthly repayments even if interest rates rise by 2–3 percentage points. This is why the income multiple alone doesn't determine your maximum mortgage — your current monthly commitments matter too.
Your deposit affects both how much you can borrow and the interest rate you are offered. Lenders express deposits as a Loan-to-Value (LTV) ratio:
A larger deposit does not increase how much you can borrow, but it reduces your LTV, improves the rates available, and may allow access to lenders with more generous income multiples.
Beyond income and deposit, lenders review your full financial picture:
Annual income: £50,000
Income multiple (4.5×): £225,000
With a 10% deposit (£22,500): property up to ~£247,500
With a 20% deposit (£45,000): property up to ~£270,000
Actual offer may vary based on outgoings and lender criteria.
Combined income: £75,000
Income multiple (4.5×): £337,500
With a 10% deposit (£33,750): property up to ~£371,250
With a 20% deposit (£67,500): property up to ~£405,000
Some lenders use 5× for joint applications with strong income and deposit.
Use our calculator to get a fast estimate of how much you could borrow.
Mortgage Calculator →A Decision in Principle (DIP) — also called an Agreement in Principle (AIP) — is a conditional indication from a lender of how much they might lend you. It typically takes 15–30 minutes online and uses a soft or hard credit check depending on the lender.
A DIP is not a mortgage offer. It is based on the information you provide and is subject to full underwriting (payslips, bank statements, property valuation). Estate agents often ask to see a DIP before accepting an offer on a property.
We recommend speaking to a whole-of-market mortgage broker who can access lenders not available directly and identify the most suitable deal for your circumstances.