How much mortgage can I afford in the UK?
This UK mortgage affordability calculator combines gross income, monthly take-home pay, existing commitments, essential spending, deposit savings and purchase costs. It estimates both an affordable mortgage and a property-price range, then checks a specific target home.
The figure is a budgeting illustration rather than an agreement in principle. Each bank or building society applies its own income, expenditure, credit, age, term, property and loan-to-value criteria.
How the UK affordability estimate works
The tool calculates the mortgage supported by the monthly amount left after entered debts, essential living costs and expected homeownership costs. It compares that result with the chosen gross-income multiple and uses the lower mortgage amount. Your usable deposit is added only after the selected emergency reserve and purchase-cost allowance have been removed from savings.
MoneyHelper says lenders consider income and monthly expenses, and notes that the most someone can borrow is often capped around four-and-a-half times annual income, although this is not guaranteed. See its mortgage affordability guidance.
Income and expenditure
Use provable income and realistic take-home pay. Include credit commitments, childcare, maintenance, essential bills and foreseeable changes rather than treating all disposable income as available for a mortgage.
Deposit and LTV
A larger deposit reduces the mortgage and LTV. MoneyHelper says buyers commonly need at least 5% to 10%, but availability and pricing depend on the lender and circumstances.
Interest-rate stress
The adjustable stress scenario shows the payment at a higher rate. It is not the lender’s test; lenders design their approach within the applicable FCA framework.
Cash to complete
Keep purchase tax, conveyancing, valuation, survey, mortgage fees and moving costs separate from the deposit and emergency savings. Actual costs vary across England, Northern Ireland, Scotland and Wales.
UK mortgage affordability rules and stress testing
FCA responsible-lending rules require an affordability assessment that takes account of income and expenditure. Where applicable, lenders must also consider likely future interest-rate increases. The FCA explains that firms have flexibility in designing the stress test and that the treatment depends partly on the mortgage’s rate period. Read the FCA interest-rate stress-test guidance.
The Bank of England’s high loan-to-income policy operates as a limit on the share of certain new lending at or above 4.5 times income, not as a promise that every applicant can borrow 4.5 times income or a blanket ban above that level. Your result can therefore differ considerably from a lender’s decision.
Affordability versus an agreement in principle
An online budget estimate helps answer what may be manageable. An agreement in principle indicates what a lender might consider after an initial assessment, and a full mortgage offer follows more detailed underwriting and a property valuation. Neither should replace a personal budget that allows for repairs, maintenance and changes in income or rates.
Use the target-home check to compare a known price with your cash, income multiple and monthly budget. For repayment schedules and overpayments, open the UK mortgage calculator.
UK mortgage affordability questions
How many times my salary can I borrow?
There is no universal entitlement to a particular multiple. Around 4 to 4.5 times income is often used as an initial planning range, while lenders also assess expenditure, credit, deposit, age, term and other risks.
Should I enter gross or net income?
Enter both. Gross annual income supports the income-multiple comparison, while monthly take-home pay is used for the household-budget check.
Does the result include Stamp Duty?
Only the amount you enter under purchase costs is reserved. Calculate the applicable SDLT, LBTT or LTT separately because the rules depend on the UK nation and buyer circumstances.
Why test a higher mortgage rate?
A higher-rate scenario shows whether the payment might still fit if rates change. It does not reproduce a lender’s regulatory or internal stress test.
Is the maximum property price a spending target?
No. It is the lower of two simplified constraints plus usable deposit. Consider discretionary spending, home maintenance, future plans and a safety margin before setting a budget.