Guide
How much can I borrow for a mortgage?
Lenders look at two things and offer you the lower of them: an income multiple (usually about 4.5 times your income) and an affordability check (whether the monthly payment fits your budget, now and if rates rose). Most calculators only show the first, which can flatter the figure.
The income multiple
The headline number is a multiple of your income. Most UK lenders cap lending at around 4.5 times your annual income, or your combined income if you're buying together. So two people earning £38,000 and £30,000 (£68,000 between them) might be offered up to roughly £306,000 on this measure. Some lenders stretch to 5 or even 5.5 times for higher earners with strong finances, but 4.5 is the common starting point.
The affordability check
The multiple is only half the story. Lenders also check that the monthly payment genuinely fits your budget. They look at your income, take off your regular commitments (loans, credit cards, childcare, other costs), and work out how much is comfortably left for a mortgage. If your outgoings are high, this check can come in below the income multiple, and the lender will lend the lower of the two.
This is the figure most people are surprised by. You might qualify on income alone for a large loan, but if you've a car finance agreement and childcare costs, the affordability check is what really sets your budget.
The stress test
Lenders don't just check the payment works at today's rate. They check it would still work if rates rose. This is the stress test. The Bank of England dropped its fixed 3% stress rule in 2022, so lenders now apply their own buffer. The practical effect is that the comfortable amount is based on a higher rate than the one you'll actually pay, which keeps a margin of safety.
Deposit, loan-to-value and the property price
What you can borrow plus your deposit is the maximum property price you can reach. Your loan-to-value (LTV) is the loan as a percentage of the price, and it matters too, because lenders price in tiers. Dropping below a threshold like 90%, 85% or 75% can unlock a noticeably cheaper rate, so a slightly bigger deposit sometimes pays for itself.
These are 2026 conventions, not a mortgage offer. A broker or lender will give you a decision in principle based on your full circumstances, including your credit history and the type of income you have.
See your realistic budget
Our free affordability calculator works it both ways (the income multiple and your outgoings) and shows the realistic figure, the property price your deposit reaches, and a stress test. Private to your device.