How much can I borrow for a mortgage?
Before you fall for a house, it helps to know the ceiling. Lenders start from a simple multiple of your income, then sense-check it against your outgoings. Here is the rule of thumb, how to turn it into a property budget, and why a lender might offer less.
The income-multiple rule
Almost every UK mortgage starts from the same sum: a multiple of your income. Most lenders cap it at around 4 to 4.5 times your annual income, using your combined income for a joint application. A smaller number will stretch to 5 or 5.5 times for higher earners, certain professions, or borrowers with big deposits.
| Annual income | Borrow at 4.5× |
|---|---|
| £30,000 | £135,000 |
| £35,000 | £157,500 |
| £50,000 | £225,000 |
| £60,000 (joint) | £270,000 |
Turning borrowing into a property budget
The mortgage is only part of the price. Add your deposit and you have the property budget:
£157,500 mortgage + £30,000 deposit = a home up to about £187,500.
Your deposit is £30,000 of £187,500, so you're borrowing at 84% loan-to-value (LTV).
Work out your own borrowing and budget
Enter your income, a partner's, and your deposit to see the mortgage, the property price you could afford, the LTV and the monthly payment.
Open the How Much Can I Borrow? calculator →Why a lender might offer less
The multiple is a ceiling, not a promise. Before lending, the lender runs an affordability check: can you comfortably make the payments, even if rates rise? They look at:
- Your outgoings, including childcare, and other regular commitments.
- Other debts, such as loans, car finance and credit-card balances, which reduce what's left for a mortgage.
- Your credit history. Missed payments or a thin file make lenders cautious.
- A stress test at a higher interest rate than you'll actually pay, to check you could still cope.
So two people on the same salary can be offered very different amounts.
How your deposit changes the deal
Your deposit as a share of the price is the loan-to-value, and it drives the interest rate you're offered. The cheapest deals are usually at 60% LTV, with rates stepping up at 75%, 85%, 90% and 95%. A bigger deposit both increases your budget and lowers the rate, so saving a little more before you buy can pay off twice.
How to borrow more, sensibly
- Clear or shrink other debts before you apply, they directly reduce affordability.
- Put down a bigger deposit to raise the budget and cut the rate.
- Apply jointly to combine two incomes.
- Improve your credit score in the months before applying.
- Consider a longer term to lower the monthly payment, though you'll pay more interest overall.
- Use a broker to find lenders with more generous multiples for your situation.
Frequently asked questions
How much can I borrow?
Roughly 4 to 4.5 times income (combined for joint), so £35,000 points to about £157,500 and £60,000 combined to around £270,000. Some lenders go to 5 to 5.5 times.
Why was I offered less than the multiple?
The multiple is a ceiling. Lenders then check your outgoings, other debts and credit history, and stress-test the payments at a higher rate.
How can I borrow more?
Clear debts, save a bigger deposit, apply jointly, improve your credit, or use a broker to find a more generous lender.
Does my deposit affect the interest rate?
Yes. A bigger deposit means a lower loan-to-value, and rates are cheapest at 60% LTV, rising in steps to 95%.
Get the UK money numbers on release day
One short email each time inflation or the base rate is published. About twenty a year. Unsubscribe anytime.
Illustrative and educational only, not financial or mortgage advice. Income multiples are a starting point; a lender's actual offer depends on affordability, your outgoings, debts, credit history and a stress test. Always check with a lender or a qualified mortgage adviser.