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Mortgage Affordability

Q: How much can I borrow for a mortgage in the UK?

Most UK lenders use an income multiple to calculate the maximum mortgage. The standard is 4 to 4.5 times your gross annual income (or combined income for a joint application). Some lenders will stretch to 5 or 5.5 times income for high earners or buyers with clean credit histories, though stricter affordability checks and stress tests apply. A £50,000 salary typically supports a mortgage of £200,000–£225,000 at standard multiples.

Q: What is a mortgage stress test?

Lenders are required to check that you could still afford your mortgage if interest rates rose significantly — typically 3 percentage points above the initial rate. This stress test is designed to protect borrowers from overextending. If your application is borderline at current rates, the stress test is often the limiting factor. Our calculator shows your estimated repayment at the current rate and at the stress-test rate so you can see how much headroom you have.

Q: Does being self-employed affect how much I can borrow?

Yes, in practice. Lenders typically require at least two years of self-assessed tax returns or accounts and will use your net profit (sole trader) or salary plus dividends (limited company director) to calculate income. If your income has grown recently, lenders may use a two-year average rather than the most recent year, which can reduce the headline figure. Some specialist lenders offer better terms for the self-employed. A mortgage broker is particularly valuable if you are self-employed.

Q: What deposit do I need to buy a house in the UK?

The minimum deposit for most residential mortgages is 5% of the purchase price (a 95% LTV mortgage). However, rates are significantly better at 10% (90% LTV) and better still at 15%, 20%, and 25%. First-time buyers may access government-backed schemes at lower deposit thresholds. Buy-to-let mortgages typically require a minimum 25% deposit. A larger deposit not only secures a lower rate but also reduces your monthly repayment and total interest cost.

Q: What other costs should I budget for when buying a home?

Beyond the deposit and mortgage, budget for: stamp duty (SDLT/LBTT/LTT depending on region and buyer type), conveyancing solicitor fees (typically £1,000–£2,500), a survey (£400–£1,500 depending on type), a mortgage arrangement fee (£0–£999), Land Registry fee (£20–£455 tiered by price), and removal costs (£800–£3,000). Our Cost of Moving calculator gives you a full itemised estimate based on your specific purchase and sale prices.

See your maximum borrowing at every income multiple — and what it costs each month.

Your annual salary

Application type

Solo Joint application

Employment type

Employed Self-employed Contractor

Deposit available

How do mortgage lenders calculate affordability?

UK mortgage lenders assess affordability using a combination of income multiples, expenditure checks, and stress tests. The income multiple — typically 4 to 4.5 times your gross annual salary — gives a headline borrowing limit. But lenders also run detailed assessments of your monthly outgoings: credit commitments, childcare, household bills, and essential spending. A lender may advertise a 5× multiple but approve significantly less if your committed outgoings are high.

Income multiples: what's realistic in 2025?

The standard income multiple across mainstream lenders sits at 4 to 4.5 times gross annual income. Some lenders will stretch to 5 or even 5.5 times for applicants earning above £75,000, buyers with professional qualifications (doctors, lawyers, accountants), or those with substantial deposits. The Bank of England limits lenders from issuing more than 15% of new mortgages at income multiples above 4.5×, which is why the 4.5× figure is the most commonly encountered cap in practice.

The stress test — what it means and why it matters

Lenders are required to verify that you could still afford your mortgage if interest rates rose by approximately 3 percentage points above the initial rate. If you are taking a five-year fix at 4.5%, your lender stress-tests affordability at around 7.5%. If your income barely covers the initial repayment, the stress test becomes the binding constraint. Our calculator shows your repayment both at the current representative rate (5.25%) and at the stressed rate (8.25%) so you can see exactly how much buffer you have.

What deposit do I need?

A 5% deposit is the minimum for most residential mortgages, giving you a 95% LTV product. However, rates improve significantly as your deposit grows: 90% LTV products are noticeably cheaper than 95% LTV, and 75% LTV (25% deposit) is typically where the best rates are found. Each 5% step in deposit generally unlocks a lower rate tier. If you are close to a threshold — say your deposit is 9% of the purchase price — it is often worth saving the additional 1% to move to the next tier before applying.

What else affects how much I can borrow?

Beyond income and deposit, lenders consider: credit score and history, existing debt commitments (loans, car finance, credit cards), the number of dependants in your household, your employment status and length of time with your current employer, and the property type (new-build flats, for example, may attract a maximum 85% LTV). For self-employed applicants, most lenders want two years of accounts or tax returns and use a two-year average of net profit or salary plus dividends. A good mortgage broker can access products across the whole market and match you to the lender most likely to offer the multiple you need.

Mortgage affordability questions

How much can I borrow for a mortgage in the UK?

Most UK lenders use an income multiple of 4 to 4.5 times your gross annual income. Some will go to 5 or 5.5 times for high earners or professionals, but the Bank of England limits lenders from writing more than 15% of mortgages above 4.5×. A £50,000 salary typically supports a mortgage of £200,000–£225,000 at standard multiples.

What is a mortgage stress test?

Lenders check you could afford repayments if interest rates rose roughly 3 percentage points above your initial rate. If your application is borderline at current rates, the stress test is often the limiting factor. Our calculator shows both figures so you can see your headroom.

Does being self-employed affect how much I can borrow?

Yes, in practice. Lenders typically require two years of tax returns or accounts and may use a two-year average rather than the most recent year, which can reduce the headline figure if income has recently grown. A specialist broker is particularly valuable if you are self-employed or a contractor.

What deposit do I need to buy a house in the UK?

The minimum is 5% for most residential mortgages. Rates improve at 10%, 15%, 20%, and 25% deposit tiers. Buy-to-let mortgages generally require a minimum 25% deposit. Stepping up to the next deposit tier before applying can unlock a meaningfully lower rate and reduce your total cost.

What other costs should I budget for when buying a home?

Stamp duty, solicitor fees, a survey, mortgage arrangement fee, Land Registry fee, and removal costs typically add £5,000–£20,000 on top of the deposit, depending on the purchase price and whether you are also selling. Use our Cost of Moving calculator for a full itemised breakdown.

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