Mortgage Borrowing Calculator
How much could you borrow? Our mortgage borrowing calculator gives an illustrative range based on your income and regular debt payments, then shows the price range your deposit could reach and what the monthly payments might look like.
- Single or joint incomes
- Price range with your deposit
- Monthly payments, including if rates rise
Where the range comes from
Borrowing as a multiple of your income, after your debt payments. MoneyHelper says lenders typically cap borrowing at 4.5 times income, and most people are offered less.
| Income multiple | Borrowing | Price with deposit | Loan-to-value | Monthly payment |
|---|
Monthly payments are for a repayment mortgage at the rate and term you entered. Illustrative only.
How lenders actually decide
- Lenders look at your income, your outgoings and how secure your job is, not just an income multiple. They'll ask about your regular spending and check your credit file.
- It's worth checking you could still afford the payments if rates went up. The "2 points higher" figure above can help.
- A bigger deposit means a lower loan-to-value, which can open up more deals.
- MoneyHelper suggests keeping savings to cover about three months of spending, including your mortgage, in case your income drops.
This is an illustration, not a mortgage offer or an agreement in principle. Lenders use their own criteria. For a personal recommendation, speak to an FCA-authorised mortgage adviser.
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How the mortgage borrowing calculator works
A simple, open method, so you can see exactly where the numbers come from.
Add up your income
Your yearly income before tax, plus the other person's if you're buying together.
Allow for your debts
We take 12 months of your regular debt payments off your income, because lenders count them when they work out what's affordable.
Apply a typical multiple
We show 4 to 4.5 times what's left. Lenders use their own, more detailed checks, so your figure could be higher or lower.
Mortgage borrowing: common questions
How many times my salary can I borrow?
MoneyHelper says lenders typically cap the maximum you can borrow at four and a half times your annual income, and that most people are offered less. Some lending above 4.5 times income does happen, but the Bank of England keeps it to around 15% of new mortgages across the whole market.
Is this how much a lender will lend me?
No. It's an illustrative range based on a simple income multiple. Lenders look at your income, outgoings, job security and credit file, and many check you could cope if rates rose. The amount a lender offers could be higher or lower than this range.
Do my debts affect how much I can borrow?
Yes. Lenders count regular commitments such as loans, car finance, credit card payments and child maintenance. In this calculator, we take 12 months of your monthly debt payments off your income before applying the multiple, so you can see the effect.
How does my deposit change things?
Your deposit adds to what you could borrow to give a possible price range. A bigger deposit also means a lower loan-to-value (LTV), which can give you a wider choice of deals. MoneyHelper says most mortgages need a deposit of at least 5% to 10% of the price.
What's an agreement in principle?
It's a statement from a lender saying how much it may be willing to lend you, based on some basic checks. It isn't a guaranteed offer. This calculator isn't an agreement in principle, but it can give you a starting point before you apply for one.
Our calculators give illustrative figures based on what you enter. This isn't a mortgage offer or an agreement in principle. Mortgage Owl provides general educational information only, not regulated financial advice, and doesn't recommend particular mortgages, lenders or deals. Your home may be repossessed if you do not keep up repayments on your mortgage.
