Get your finances in order
Part 1: Understand how much you could borrow for a mortgage
Our mortgage affordability calculator will help you get a rough guide of the maximum amount you could borrow for a mortgage, based on typical circumstances.
In recent years, mortgage lending criteria has changed for the better, to ensure people don’t end up with mortgage loans they can’t afford. The calculator below looks at a multiple of your annual income, which is just one of the ways lenders use to calculate your mortgage affordability.
When you apply for a mortgage, lenders will also look at your income, expenditure and other factors such as your credit history. By the end of this series you will understand how mortgage lenders see you and how to increase your chances of getting the property you want.
How much can I borrow?
Please check this figure is correct. Annual salary expected for example £25,000.
Your Target
Please check this figure is correct. Property price expected for example £150,000.
The maximum amount you could borrow is between:
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The maximum amount you could borrow based on your income is between:
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* This calculation is based on a multiple of your income using typical mortgage lenders criteria. Your deposit is not used in this calculation.
A typical 10% deposit on these amounts would require you to save between:
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This would mean including your {{ result.depositSaved | currency('£', 0) }} deposit, a total property price between:
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Most lenders will require at least a 10 - 15% deposit (Before Covid-19 it was 5% but this changes weekly). You may be able to borrow slightly more or less depending on your individual circumstance such as your credit history and current outgoings. Make sure you check with a broker or lender before starting your property search or applying. Let's explore your result below:
