House Affordability Calculator UK 2025

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How the House Affordability Calculator Works

This UK house affordability calculator uses the industry-standard income multiple method to estimate the maximum mortgage you can obtain, then adds your deposit to show the maximum property price within your reach. It applies the three most common income multiples used by UK mortgage lenders in 2025: 4x, 4.5x and 5x your gross annual salary.

The calculator also factors in your monthly committed expenses (credit cards, personal loans, car finance, etc.) because lenders use an affordability assessment that looks at your disposable income after these outgoings. If your debt-to-income ratio is high, your maximum borrowing may be lower than the headline income multiple suggests.

How Income Multiples Work in the UK (2025)

The income multiple is the most common starting point for UK mortgage affordability. Here is how the main lenders compare:

• Halifax & Lloyds Bank: Up to 5x income for higher earners (£75,000+)
• NatWest & RBS: Up to 4.5x typically, with 5x for professionals
• Barclays: 4.49x standard, higher for mortgage professionals
• Nationwide: Up to 5.5x for first-time buyers with specific criteria
• HSBC: 4.75x standard, higher for larger incomes
• Santander: 4.45x standard across most products

Keep in mind that income multiples are a ceiling, not a guarantee. Your actual offer depends on credit score, deposit size, existing debts, age, employment type, and the specific lender's current criteria.

Understanding the Mortgage Stress Test

Even though the Bank of England removed the mandatory 3% stress test buffer in August 2022, virtually all UK lenders still apply an internal stress test to comply with FCA responsible lending rules. Most test affordability at 7-9% interest rates to ensure borrowers can still make payments if rates rise significantly from their initial rate.

Our calculator shows your monthly repayment at 7% as a "stress test" scenario. If this figure is more than 45-50% of your net monthly income, you may struggle to pass a lender's affordability check even if you meet the income multiple threshold.

Stamp Duty Land Tax 2025

Stamp Duty Land Tax (SDLT) is payable on residential property purchases in England and Northern Ireland. The temporary first-time buyer relief thresholds that were raised in September 2022 reverted from April 2025. The rates from April 2025 are:

• £0 - £125,000: 0% (first-time buyers 0% up to £300,000 on properties up to £500,000)
• £125,001 - £250,000: 2%
• £250,001 - £925,000: 5%
• £925,001 - £1,500,000: 10%
• Above £1,500,000: 12%

A 5% surcharge applies on all bands for additional property purchases (buy-to-let, second homes). Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — both with different rates.

Other Costs to Budget For

When calculating affordability, remember the deposit and mortgage are not the only costs. Budget for these additional purchase costs:

• Conveyancing/Solicitor fees: £800-£1,800 depending on property value and complexity
• Mortgage arrangement fee: £0-£2,000 (can often be added to the mortgage)
• Survey: £250 (basic valuation) to £1,500 (full structural survey)
• Removals: £400-£1,500
• Buildings insurance: Required from exchange of contracts, £150-£500/year
• Land Registry fee: £20-£910 depending on property price

Example Affordability Scenarios

Frequently Asked Questions

How much house can I afford on my salary in the UK?

Most UK lenders will lend between 4 and 4.5 times your gross annual salary. Some specialist lenders offer up to 5 or even 5.5 times income for professionals such as doctors, lawyers and accountants. For example, on a £40,000 salary you could typically borrow £160,000-£180,000. Add your deposit to arrive at the maximum affordable property price. Your total monthly mortgage payment should generally not exceed 35-40% of your net take-home pay.

What is a mortgage stress test in the UK?

A mortgage stress test checks whether you could still afford repayments if interest rates rose significantly. UK lenders must assess affordability at the lender's standard variable rate (SVR) plus a buffer — typically testing at around 7-8%. The Bank of England removed its mandatory 3% above reversion rate stress test rule in August 2022, but most lenders still apply their own internal stress tests. Our calculator shows your repayments at 7% to illustrate this scenario.

How much deposit do I need to buy a house in the UK?

The minimum deposit is typically 5% of the property purchase price. However, the higher your deposit the better: 10% gives access to more lenders and better rates; 15% significantly reduces your monthly repayments; 20%+ unlocks the best rates on the market. First-time buyers can use the Lifetime ISA which adds a 25% government bonus up to £1,000 per year.

Does my partner's salary count for mortgage affordability?

Yes. For a joint mortgage, lenders assess combined household income. Most lenders apply their income multiple to the total joint salary. For example, two people each earning £30,000 (£60,000 combined) could borrow £240,000-£270,000 at 4-4.5x combined income. Joint applications also require both parties to pass credit checks, and both applicants are jointly liable for the full mortgage debt.

What counts as monthly expenses for mortgage affordability?

Lenders consider all committed monthly outgoings including: existing loan and credit card payments, car finance, student loan repayments, childcare costs, pension contributions, and regular subscriptions. Clearing credit card balances and personal loans before applying can significantly increase your mortgage offer.

What is stamp duty land tax and how much will I pay?

Stamp Duty Land Tax (SDLT) is a tax paid when buying property in England and Northern Ireland. From April 2025 the standard thresholds reverted: 0% on the first £125,000; 2% on £125,001-£250,000; 5% on £250,001-£925,000; 10% on £925,001-£1.5m; 12% above. First-time buyers pay 0% on the first £300,000 for properties up to £500,000. Additional property purchases attract a 5% surcharge.

Should I use a mortgage broker or go direct to a lender?

A whole-of-market mortgage broker has access to thousands of deals from hundreds of lenders including exclusive rates not available directly. Many brokers charge no fee (paid commission by lenders) while others charge £300-£600. For complex cases — self-employed, poor credit, high income multiples — a broker is almost always worth using.

Disclaimer: This calculator provides estimates for informational purposes only. It is not financial advice. Results are based on standard income multiples and current typical rates. Always consult a qualified, FCA-regulated mortgage adviser before making financial decisions. Your home may be repossessed if you do not keep up repayments on your mortgage.