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.
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 |
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).
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 →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:
So two people on the same salary can be offered very different amounts.
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.
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.
The multiple is a ceiling. Lenders then check your outgoings, other debts and credit history, and stress-test the payments at a higher rate.
Clear debts, save a bigger deposit, apply jointly, improve your credit, or use a broker to find a more generous lender.
Yes. A bigger deposit means a lower loan-to-value, and rates are cheapest at 60% LTV, rising in steps to 95%.
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.