Property Affordability Calculator
Estimate the maximum mortgage you could borrow based on income and deposit. Uses standard lender income multiples — actual offers vary by lender.
Reviewed by Richard Ross · Last updated April 2026
How Property Affordability Calculator works
Income multiples
Most mainstream lenders will offer 4–4.5× your annual income. Some specialist lenders and products offer up to 5–5.5× income. Joint applications typically use 4× the combined income. These are indicative — actual offers depend on credit score, employment type, debts, and the lender's affordability model.
How debts affect borrowing
Monthly debt commitments (car finance, personal loans, credit card minimum payments) reduce how much a lender will advance. Most lenders will either reduce the income multiple or subtract the annualised debt cost from the income before applying the multiple.
Stress testing
Since 2014, lenders must stress test affordability at a higher rate (typically 3% above the product rate). This means the actual affordable payment at current rates may be higher than the stress test allows. The FCA removed the mandatory stress test rule in August 2022, but most lenders still apply their own.
This is an estimate only
This calculator uses income multiples and is indicative only. A mortgage in principle (MIP/AIP) from a lender or broker uses full credit, income, and expenditure assessment. Consult a qualified mortgage adviser for personalised advice.
UK lender criteria and Mortgage in Principle
UK lenders apply their own individual criteria beyond income multiples. High-street lenders such as Halifax, Nationwide, Barclays, and HSBC each have slightly different models. A mortgage in principle (MIP), also called an agreement in principle (AIP), is a soft or hard credit check that gives a conditional lending figure based on your actual income and credit profile. Obtaining an MIP before making an offer demonstrates to sellers and estate agents that you are a serious, finance-ready buyer. An MIP is typically valid for 60–90 days.
Self-employed and contractor borrowing
Self-employed applicants typically need two to three years of accounts or tax returns (SA302s) to verify income. Most lenders use the lower of the last two years' net profit or average. Contract workers on a day rate can sometimes borrow based on annualised contract rate (day rate × 5 × 48 weeks). Some specialist lenders are more flexible for recently self-employed applicants with one year of accounts, though the product range and maximum LTV may be restricted.
Source: FCA — Mortgage Conduct of Business sourcebook (MCOB), FCA Handbook (fca.org.uk/firms/mortgages). Bank of England Financial Policy Committee rules on high loan-to-income mortgages.
Further reading
Once you know how much you can borrow, the next decision is which fixed-rate term to choose — and what ERCs, SVR rollover, and your personal circumstances mean for that choice.
Read our 2-year vs 5-year fixed mortgage guide →Frequently asked questions
How much can I borrow for a mortgage?
Most lenders will offer 4–4.5× your annual income. On a £50,000 salary that is £200,000–£225,000. Some specialist lenders offer 5× income. A joint application uses combined income.
What is the maximum LTV for first-time buyers?
Most lenders offer up to 95% LTV (5% deposit). Some specialist products allow 100% mortgages (e.g., guarantor mortgages). Higher LTV means higher rates and stricter affordability assessment.
Do I need a mortgage adviser?
You are not required to use an adviser, but one can access the whole of market and assess the best deal for your circumstances. This is an estimate only — speak to a qualified mortgage adviser for personalised advice.
Can I get a bigger mortgage with a larger deposit?
A larger deposit increases the maximum property price you can buy (your budget = max borrow + deposit), but it does not change the maximum lend itself, which is based on income. However, lower LTV from a larger deposit means better rates and lower repayments.
Can I borrow more as a first-time buyer?
Some lenders offer enhanced income multiples (up to 5–5.5×) specifically for first-time buyers, particularly on higher incomes. The Skipton Building Society's Track Record Mortgage allows borrowers with a strong rental payment history to borrow up to 100% LTV with no deposit, subject to strict criteria.
How does a bonus or overtime income affect my mortgage?
Lenders treat variable income differently. Many will include 50–100% of regular bonus or overtime if it has been consistent over two or more years and is evidenced by payslips or P60s. Commission-based income is treated similarly. Lenders typically require the income to be shown on the most recent two years' payslips and confirmed by your employer.
How do lenders assess self-employed affordability?
Self-employed borrowers typically need 2-3 years of accounts or tax returns. Lenders use either the lower of the last 2 years' net profit, or an average of the last 2-3 years. Some lenders use the most recent year if the trend is improving. SA302 forms and Tax Year Overviews from HMRC are the standard evidence. Newly self-employed borrowers (under 2 years) face significantly reduced options, though specialist lenders do exist.
What is the stress test and how does it affect what I can borrow?
Lenders must assess whether you could still afford the mortgage if interest rates rose significantly. FCA rules require lenders to verify affordability at a rate at least 3 percentage points above the reversionary rate (the rate that applies after any initial fixed or discount period). For example, a 5-year fix at 4.5% would be stress-tested at around 7.5%. This stress test is a key reason why some buyers can pass affordability at the advertised rate but fail the lender's actual assessment.
Can gifted deposits affect my mortgage affordability?
No — a gifted deposit does not affect your income multiple calculation or affordability assessment. However, lenders require a gifted deposit letter from the donor confirming the money is a non-repayable gift (not a loan). If the gift is a loan, it is treated as a liability and reduces your affordability. Most lenders also want to see that the donor has the financial means to make the gift without financial hardship.
Does the mortgage calculator account for stamp duty and other buying costs?
This calculator estimates the maximum borrowing based on income multiples. It does not include buying costs — stamp duty, legal fees, survey costs, and moving expenses — which typically add 2-5% of the purchase price. A realistic budget should ensure you have sufficient deposit plus buying costs. Using all your savings as a deposit and then having no cash reserve for completion costs is a common planning mistake.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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