UK mortgage guide
How much can I borrow for a mortgage?
An income multiple is only a starting point. The lender must also decide whether the repayments fit verified income, regular commitments, household costs and possible future interest-rate changes.
Verify income
The lender checks employment and other acceptable income sources.
Count spending
Credit, childcare and household costs reduce available income.
Test the rate
Likely future rate increases may be included in the assessment.
Add the deposit
The loan and deposit together set the reachable property price.
Use an income multiple as a range, not a promise
Multiplying gross income by 4 to 4.5 gives a useful first planning range. For example, joint income of £68,000 produces £272,000 at four times income and £306,000 at 4.5 times. That does not mean a lender will offer either amount.
The Bank of England's high loan-to-income measure treats mortgages at or above 4.5 times income as high-LTI lending. The regulatory flow limit controls the share of this lending across the market; it is not a universal cap for each applicant.
The affordability check uses income and expenditure
FCA rules require lenders to take full account of net income, committed expenditure, essential household spending and basic quality-of-living costs. Examples include loans, credit cards, hire purchase, maintenance payments, childcare, household repairs and ordinary living costs.
The lender must obtain evidence for declared income. Treatment varies for overtime, bonuses, self-employed profit, benefits, pensions and other sources, so two lenders can reach different answers from the same household.
Interest-rate stress still matters
The Bank of England withdrew its separate fixed 3-percentage-point affordability test in 2022, but FCA responsible-lending rules remain. Where the mortgage is not fixed for at least five years, the lender must consider the impact of likely future interest-rate increases. Lenders can design that assessment around the product, including the rate that applies after the initial deal.
The deposit changes loan-to-value, not affordability by itself
The loan plus deposit gives the property-price ceiling. A £240,000 loan with a £60,000 deposit reaches a £300,000 property at 80% loan-to-value. A larger deposit can move the application into a lower LTV band and widen the choice of products, but it does not replace the income-and-expenditure assessment.
| Planning figure | What it tells you | What it does not tell you |
|---|---|---|
| Income multiple | A rough loan range | Whether the repayments fit the household |
| Affordability result | A budget after income and spending | Whether a specific lender will approve |
| Loan-to-value | Loan as a share of property price | The maximum affordable monthly payment |
A decision in principle remains provisional. Credit history, property type, valuation, income evidence and lender criteria can change the final offer.
Build a realistic planning range
The free calculator compares an income-multiple range with household affordability, then adds the deposit and an interest-rate stress scenario.
Mortgage borrowing questions
Is 4.5 times income the maximum?
No. It is a regulatory marker for high loan-to-income lending, not a promise and not a universal individual cap.
Why do online estimates differ?
They may use different income multiples, spending assumptions, interest rates, mortgage terms and treatment of variable income.
Does a five-year fixed rate remove every affordability check?
No. The specific future-rate rule differs, but the lender must still assess whether the mortgage is affordable from verified income and expenditure.