Most UK lenders will lend about 4 to 4.5 times your yearly income, minus an allowance for any debts you’re paying off. Enter your income, deposit and debts to see roughly how much you could borrow, your property budget, the monthly repayment, and what that repayment would be if rates rose.
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How lenders work out what you can borrow
A lender starts with an income multiple. 4.5 times your gross yearly income is the common ceiling, and some lenders offer 5 to 5.5 times to higher earners or certain professions. Bank of England rules limit how many loans a lender can make above 4.5 times income, so higher multiples are rationed.
The lender then runs an affordability check on your real outgoings: credit commitments, childcare, regular bills, and whether you could still pay if rates rose. This calculator models debts by reducing the loan, and shows the repayment 3 points above your rate so you can judge that risk yourself.
Examples by salary
These assume a 4.5× multiple, no other debts, a 4.5% rate and a 30-year repayment mortgage. They’re rough guides, not offers.
| Household income | Could borrow (4.5×) | Monthly repayment | If rates were 7.5% |
|---|---|---|---|
| £25,000 | £112,500 | £570 | £787 |
| £30,000 | £135,000 | £684 | £944 |
| £40,000 | £180,000 | £912 | £1,259 |
| £50,000 | £225,000 | £1,140 | £1,573 |
| £60,000 | £270,000 | £1,368 | £1,888 |
| £80,000 | £360,000 | £1,824 | £2,517 |
| £100,000 | £450,000 | £2,280 | £3,147 |
Example: a couple on £32,000 and £28,000
Together they earn £60,000, so at 4.5× they could borrow about £270,000. With a £30,000 deposit that’s a £300,000 budget at 90% loan to value. Now suppose one of them has a £250 a month car finance payment. Taking it off at the same multiple (£250 × 12 × 4.5 = £13,500) brings the loan down to about £256,500. Clearing the car finance before applying would add more borrowing power than saving another £10,000 of deposit.
Example: a first-time buyer on £35,000 with a 5% deposit
At 4.5× the loan would be £157,500, and a £8,300 deposit gives a budget of about £165,800 at 95% loan to value. Fewer lenders offer 95% mortgages and their rates are usually higher. Getting the deposit to 10% (about £17,500) would usually unlock cheaper deals and lower the monthly payment.
Ways to borrow more, or need less
- Pay down credit before you apply. Monthly commitments cut borrowing power directly.
- Add a second applicant. Lenders usually combine both incomes.
- Grow the deposit past a loan-to-value band. 90%, 85%, 75% and 60% are common cut-offs where rates fall.
- Check your credit file with the main agencies and fix any errors before a lender sees it.
Next steps
Once you know your budget, work out the exact payment on a specific property and the effect of overpaying with the mortgage calculator. Check what your salary leaves you each month with the take-home pay calculator.
Frequently asked questions
How much can I borrow on a £30,000 salary?
Usually about £120,000 to £135,000 at 4 to 4.5 times income, before any reduction for debts. Some lenders may go higher, but most stop at 4.5 times.
How much can I borrow on a £50,000 salary?
Around £200,000 to £225,000 at 4 to 4.5 times income. Some lenders offer 5 times or more to higher earners, which would be about £250,000.
Do lenders use gross or take-home pay?
Gross (before tax) income for the multiple. They then check affordability against your actual monthly spending.
Does a bigger deposit let me borrow more?
Not usually. The loan is set by your income. A bigger deposit raises your total budget and gets you a lower loan to value, which usually means a cheaper rate.
Is this a mortgage offer?
No. It’s an estimate. Only a lender or broker can tell you what you’d actually be offered, after a full application and credit check.
Sources
- MoneyHelper: How much can I borrow?
- Bank of England: Financial stability and mortgage market measures
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