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Mortgage Affordability Calculator UK 2025

Calculate how much you can borrow for a mortgage based on your income, deposit, and monthly commitments. Updated with 2025 UK lender criteria and stress testing.

4-5.5x Income Multiple Joint Applications Stress Test Calculator MoneyHelper Aligned
Quick Mortgage Affordability Check
Maximum Mortgage Amount
£0
Max Property Price
£0
Income Multiple
4.5x
Loan-to-Value
0%
Est. Monthly Payment
£0
Income Multiple Risk Level
3x (Conservative) 4.5x (Standard) 5.5x (High)
90%
Good LTV Band
Eligible for competitive rates
Comprehensive Affordability Analysis
Estimated Maximum Borrowing
£0
Conservative (4x)
£0
Standard (4.5x)
£0
Maximum (5.5x)
£0
Effective Income
£0
Monthly Budget & Affordability Check

Monthly Expenses

Monthly Mortgage Payment
£0
Total Monthly Out
£0
Remaining Each Month
£0
DTI Ratio
0%
Interest Rate Stress Test

See how your mortgage payment changes if interest rates rise. UK lenders stress test at current rate +3% to ensure affordability.

Deposit Savings Planner

Calculate how long to save for your deposit and see the impact of different deposit sizes on mortgage rates.

Deposit Size Comparison

UK Lender Income Multiples 2025

Different lenders offer varying income multiples. Higher multiples mean more borrowing, but typically come with stricter criteria or higher rates.

Lender Type Income Multiple Typical Requirements
High Street Banks 4.0 - 4.5x Standard credit check, 10%+ deposit preferred
Building Societies 4.0 - 5.0x More flexible on income types, may accept 5% deposit
Specialist Lenders 4.5 - 5.5x Professionals (doctors, lawyers), high earners (£100k+)
Private Banks 5.0 - 6.0x High net worth, large deposits (25%+), bespoke underwriting
Self-Employed Specialists 4.0 - 4.5x 2+ years trading history, SA302 or accountant's certificate
Broker Advantage: Mortgage brokers access the whole market and know which lenders offer the best multiples for your specific circumstances. Their knowledge can unlock £20,000-£50,000 extra borrowing compared to applying directly to your bank.

What Affects UK Mortgage Affordability?

Income Factors

  • Base Salary: 100% counted by all lenders - your foundation for borrowing
  • Overtime: 50-100% counted depending on regularity (need 2+ years history)
  • Bonuses: 50-100% of average counted, typically need 2-3 years proof
  • Commission: Usually 50% of average over 2-3 years
  • Rental Income: 75-125% of rent after BTL mortgage costs
  • Pension Income: 100% counted, stable income source
  • Self-Employment: Average of 2-3 years net profits, some accept 1 year

Deductions That Reduce Borrowing

  • Credit Card Debts: Lenders count 3-5% of total limit as monthly commitment
  • Personal Loans: Full monthly payment deducted from affordability
  • Car Finance: Full monthly payment, major impact on borrowing capacity
  • Student Loans: Plan 2 repayments (9% over £27,295) reduce net income
  • Childcare: Monthly costs reduce available income, varies by lender
  • Dependents: Typically £3,000-£5,000 reduction per child

Deposit Impact on Rates

Deposit LTV Typical Rate (2025) Monthly on £200k
5% 95% 5.5 - 6.5% £1,136 - £1,264
10% 90% 4.5 - 5.5% £1,013 - £1,136
15% 85% 4.0 - 5.0% £956 - £1,074
25%+ 75% 3.5 - 4.5% £901 - £1,013

7 Ways to Increase Your Mortgage Borrowing

1. Clear Existing Debts

Every £100/month in commitments reduces borrowing by £30,000-£36,000. Pay off credit cards and loans before applying.

2. Improve Credit Score

Register to vote, pay bills on time, keep credit utilization below 25%. A better score unlocks higher income multiples.

3. Use Joint Application

Adding a partner's income can double your borrowing capacity. Even part-time income of £15,000 adds £60,000+ borrowing.

4. Declare All Income

Include overtime, bonuses, rental income, and pension. Every £5,000 extra income adds £22,500-£27,500 borrowing.

5. Save Bigger Deposit

Moving from 10% to 15% deposit drops rates by 0.3-0.5%, saving thousands over the mortgage term.

6. Shop Around

Different lenders have different criteria. A broker can find lenders offering 5.5x income vs 4x from your bank.

7. Extend Mortgage Term

35-year term reduces monthly payments, improving affordability assessment. You can always overpay later.

6 Mortgage Affordability Mistakes to Avoid

1. Borrowing the Maximum

Just because you're approved for £300k doesn't mean you should borrow it all. Leave a buffer for rate rises and life changes.

2. Applying for Credit Before Mortgage

New credit applications (cars, sofas, phones) before your mortgage can reduce borrowing by tens of thousands.

3. Forgetting Hidden Costs

Budget for: arrangement fees (£0-£2k), valuation (£250-£1.5k), legal (£850-£1.5k), stamp duty, moving costs.

4. Not Getting a DIP First

Viewing homes without a Decision in Principle wastes time if your actual borrowing is less than expected.

5. Ignoring Stress Testing

Check you can afford payments if rates rise by 2-3%. Lenders stress test, but your comfort matters too.

6. Not Checking Credit Report

Errors on your credit file can cost thousands in lost borrowing. Check Experian, Equifax, and TransUnion before applying.

First-Time Buyer Affordability Help

Government Schemes 2025

  • Lifetime ISA: Save up to £4,000/year, get 25% government bonus (max £1,000/year). For properties up to £450,000.
  • First Homes: 30-50% discount on new-build homes. Local connection often required.
  • Shared Ownership: Buy 25-75% share, rent the remainder. Smaller deposit needed.
  • 95% LTV Guarantee: Government backing allows lenders to offer 5% deposit mortgages with competitive rates.
  • Stamp Duty Relief: No stamp duty on first £425,000 for first-time buyers (properties up to £625,000).

Typical First-Time Buyer Scenario

Example: Couple with combined income £65,000, saving £500/month, current savings £15,000.
  • Borrowing: £65,000 × 4.5 = £292,500
  • After 18 months saving (incl. LISA bonus): £15,000 + (£500 × 18) + LISA bonus = ~£27,500 deposit
  • Max property: ~£320,000 with 91% LTV
  • Stamp duty saved: £0 (first-time buyer relief)

Frequently Asked Questions

With a £50,000 salary, you could typically borrow £200,000-£275,000 depending on the lender and your circumstances. High street banks offer around 4-4.5x (£200,000-£225,000), while specialist lenders for professionals may offer up to 5.5x (£275,000). Your actual borrowing will be reduced by existing debts, dependents, and other commitments.
Yes, self-employed applicants can get mortgages, though criteria differ. Most lenders require 2-3 years of trading history and will average your profits over that period. You'll need SA302 tax calculations or accountant-certified accounts. Some specialist lenders accept 1 year of trading. Day-rate contractors may use contract value rather than accounts.
Lenders stress test your affordability at higher interest rates (typically current rate +3%) to ensure you could still afford payments if rates rise. For example, if you're applying at 4.5%, the lender checks affordability at 7.5%. This is why you might be approved for less than the simple income × 4.5 calculation suggests.
Most Decisions in Principle (DIPs) are valid for 60-90 days. During this time, you can use it to show estate agents you're a serious buyer. Getting a DIP involves a soft credit check that doesn't affect your credit score. However, the full mortgage application later will involve a hard search.
Yes, having dependents (children) typically reduces your borrowing capacity. Lenders factor in additional household expenses for each child, usually £3,000-£5,000 per child reduction in borrowing. However, child benefit income may partially offset this. Childcare costs are also considered as a monthly commitment.
A good mortgage broker can be invaluable, especially if you have complex income (self-employed, multiple jobs, bonuses), adverse credit, or want to maximise borrowing. They access the whole market and know which lenders suit your situation. Many brokers offer free advice and are paid by the lender on completion. They can often find £20,000-£50,000 extra borrowing compared to your own bank.
JH

James Harrison

CeMAP Qualified | LIBF Diploma in Financial Planning

James is a qualified mortgage adviser with over 12 years' experience in UK residential and buy-to-let lending. He previously worked as a mortgage underwriter at a major UK building society before becoming an independent adviser. James specialises in complex income cases including self-employed, contractor, and high-net-worth clients.

Last updated: January 2025 | Content verified against current UK lender affordability criteria and FCA guidelines

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✓ Expert Reviewed — This calculator is reviewed by our team of financial experts and updated regularly with the latest UK tax rates and regulations. Last verified: January 2026.