Affordability calculator
How much could you borrow?
Enter your income, deposit and monthly commitments to see the borrowing range most lenders would consider, and the property price it supports.
Already know what you want to borrow? Use the monthly payment calculator.
Your details
Estimated borrowing range
£144,800 – £171,950
- Maximum property price
- £201,950
- Loan to value
- 85%
- Monthly payment at 4.50%
- £825
- Assessed income
- £38,000
At around 85% loan to value, you are close to the 85% band, where rates usually improve.
Get a real figure from an adviserEstimates only. They are not a lender decision, a mortgage offer or advice. Bonus and commission are counted at 50%, and credit commitments, childcare and dependants reduce the figure, as most lenders do.
How lenders work out what you can borrow
Income multiples
Most lenders start at 4 to 4.75 times your income, combined if you are buying with someone else. A handful go higher for larger deposits, higher earners or certain professions.
Self-employed income
Accounts or tax calculations from the last two or three years are averaged, and many lenders use the lower of the average and the latest year. Directors may add dividends or retained profit.
What reduces the figure
Loans, car finance, credit card balances, childcare and each dependant all cut what a lender will offer, because affordability is tested on what is left after your commitments.
The real answer
An agreement in principle is a lender's own provisional decision after a credit check. It is what estate agents ask for, and it is the only figure you can rely on when making an offer.
Find out what lenders would actually offer you
Send us your details and an adviser will call you back with real borrowing figures — free, with no obligation and no impact on your credit score.
Affordability questions, answered
How lenders decide what you can borrow.
- How much can I borrow for a mortgage?
- Most UK lenders lend between 4 and 4.75 times your annual income, and a few will stretch further for higher earners or certain professions. Your loan, car finance, credit card balances, childcare costs and the number of people who depend on you all reduce the figure, as does a smaller deposit.
- How is self-employed income assessed?
- Lenders usually average your last two or three years of accounts or tax calculations, and many use the lower of the average and the most recent year. Company directors may be assessed on salary plus dividends, and some lenders will use retained profit. A broker knows which lenders treat your figures most generously.
- Does bonus or commission count towards affordability?
- Often yes, but rarely in full. Many lenders count 50% of a regular bonus or commission, some count all of it if it is guaranteed and evidenced on payslips. This calculator counts half of anything you enter as bonus or commission.
- Is this the same as an agreement in principle?
- No. This is an estimate to help you plan. An agreement in principle is a real lender's provisional decision based on a credit check, and it is what estate agents ask for when you make an offer. Request a callback and an adviser can arrange one.