MORTGAGE BORROWING CALCULATOR

Our mortgage borrowing calculator gives you a quick estimate of how much you could borrow based on your income. It’s a useful starting point before you view properties or speak to a lender.

How our mortgage borrowing calculator works

Enter your income, and your partner’s if you’re buying together, and the mortgage borrowing calculator applies a typical lending multiple to give you an estimate. Many lenders lend around 4 to 4.5 times income, and some go higher for certain incomes or professions. The result is a guide only: each lender has its own rules, and the amount you’re offered depends on a full affordability assessment.

What affects how much you can borrow?

Lenders look at more than your salary. The main things they consider are:

Your income: basic salary, plus bonus, overtime or commission (lenders often count only part of these).
Your outgoings: loans, credit cards, car finance, childcare and other regular commitments.
Your credit history: missed payments, defaults or CCJs can reduce what’s available, though specialist lenders may still help.
Your deposit: a bigger deposit can open up more lenders and better rates.
How you’re employed: employed, self-employed, company director and contractor incomes are all assessed differently.
Stress testing: lenders check you could still afford your payments if interest rates rose.

Self-employed or a company director?

If you’re self-employed, lenders usually look at your last one to two years of accounts or tax calculations (SA302s). Company directors may be assessed on salary plus dividends, or on their share of company profits, depending on the lender. Because the rules vary so much, a mortgage borrowing calculator can under- or over-estimate your figure, and that’s where a whole-of-market adviser can help.

Ways to improve how much you could borrow

If the figure from the mortgage borrowing calculator is lower than you hoped, there are a few things that can make a difference over time:

Reduce or clear existing debts such as credit cards or personal loans, as lenders take your monthly commitments into account.
Check your credit file with the main credit reference agencies and correct any mistakes before you apply.
Register on the electoral roll at your current address, which helps lenders confirm who you are.
Save a bigger deposit if you can, as this can widen the choice of lenders available to you.
Consider a joint application if you’re buying with a partner, as lenders can look at both incomes.
Speak to a whole-of-market adviser, as some lenders are more flexible with bonuses, overtime, self-employed income or recent job changes.