How much can I borrow for a mortgage based on my income?

Most UK lenders use an income multiplier of 4.5 times your annual income to determine how much you can borrow. However, this can vary based on your deposit size, existing debts, and credit history. Our calculator helps you estimate your maximum borrowing capacity while considering these factors.

How much of my income should go to mortgage payments?

As a general rule, your mortgage payments should not exceed 30-35% of your gross monthly income. Our calculator will warn you if your payments exceed 40% of your income, which may be difficult to maintain long-term.

What factors affect mortgage affordability?

Key factors include your income, existing debts, credit score, deposit size, and the interest rate. Lenders typically look for your mortgage payments to be no more than 30-35% of your gross monthly income, though this can vary based on your overall financial situation.

How does a joint mortgage affect borrowing capacity?

A joint mortgage combines both applicants' incomes, potentially increasing your borrowing capacity. Our calculator allows you to input both incomes to get a more accurate estimate of how much you can borrow together.

Mortgage Calculator

Calculate your monthly mortgage payments and see how overpayments could help you pay off your loan sooner.

Calculate Your Mortgage Payments

Enter your loan details below to see your estimated monthly payments and total costs.

Mortgage Repayment Breakdown

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New Mortgage Term with Overpayment

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How Much Can I Borrow?

Calculate your maximum borrowing capacity based on your income and financial situation.

Borrowing Capacity Results

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Why Use Our Mortgage Calculator?

Planning your home purchase? Our mortgage calculator helps you understand your monthly payments and total costs, whether you're exploring repayment or interest-only options. Plus, see how overpayments can shorten your mortgage term and save you money on interest.

Need more tools? Check out our Household Budget Planner to manage your finances or our Salary Calculator to see how your income fits into your plans.

Frequently Asked Questions

What's the difference between repayment and interest-only mortgages?

With a repayment mortgage, your monthly payments cover both the interest and the capital, so you'll own your home at the end of the term. Interest-only mortgages require you to pay only the interest each month, with a separate plan to repay the capital at the end of the term.

How do overpayments work?

Overpayments are additional payments you make on top of your regular mortgage payment. They reduce your outstanding balance faster, which means you'll pay less interest overall and could pay off your mortgage sooner.

Are there limits to how much I can overpay?

Most mortgages allow overpayments up to 10% of the outstanding balance per year without penalty. However, this varies by lender, so check your mortgage terms for specific limits.

Should I choose a longer or shorter mortgage term?

A longer term means lower monthly payments but more interest paid overall. A shorter term means higher monthly payments but less interest paid. Choose based on your budget and financial goals.