Mortgages
Mortgage Affordability
Trusted by over 250,000 people since 2012
Written by Mark Langshaw Reviewed by Lee Trett
26 January 2026
Hub page introduction, criteria and FAQs added
12 December 2024
First Published
Understanding how much you can borrow is the first step towards owning your own home. However, mortgage affordability is a comprehensive assessment of your financial lifestyle, debt-to-income ratio, and future proofing against interest rate changes, so not always easy to work out accurately.
However, with the right preparation and expert guidance, you can maximise your borrowing potential and feel confident when searching for your dream home. Check out our Mortgage Affordability Guide for an in-depth look at the process.
How do lenders calculate my maximum borrowing?
Most UK lenders use a multiple of your income, typically between 4 and 5 times your gross annual income. For high earners and certain professionals, like doctors, some lenders may stretch this to 5.5 times your annual income or beyond.
Lenders will also stress test your affordability by looking at:
-
Outgoings - Such as personal loans, car finance, and childcare costs, for example
-
Discretionary Spending - other lifestyle costs, often verified via the last three months of bank statements
-
Future Interest Rates - To ensure you could still afford the monthly mortgage repayments in the event that interest rates rise significantly in the future
|
Deposit Amount |
Loan-to-Value (LTV) |
Rates |
Criteria |
|
5% |
95% LTV |
Typically high interest rates |
Usually lenders have stricter criteria |
|
10% |
90% LTV |
Competitive rates available |
Criteria is often more flexible |
|
15% - 20% |
80-85% LTV |
Higly competitive rates |
Lenders may allow some bad-credit borrowers and have more flexibility with property types in theis LTV bracket |
|
40%+ |
60% LTV |
Market-leading rates |
Lenders generally offer the greatest flexibility and often allow higher-risk borrowers with this level of deposit |
Does my deposit size affect how much I can borrow?
Yes it does. The more deposit you have, the lower you’re Loan-to-Value (LTV). Your LTV ratio can impact the number of products available to you, and the type of rates you qualify for.
This table shows how your LTV is likely to impact the deals available to you/
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Most lenders are happy to include bonuses, overtime, or commission, but they rarely count 100% of it. Typically, a lender will take an average of your variable income over the last two years and factor in 50% to 80% of that figure into your affordability total. Some specialist lenders, however, may consider 100% if the income is proven to be regular and sustainable.
Yes, but it won't stop you from getting a mortgage. Because student loan repayments are deducted directly from your salary, they reduce your net take-home pay. Lenders factor this deduction into your monthly outgoings, which can slightly lower the total amount they are willing to lend you compared to someone with no student debt.
It is possible, but it depends on the type of debt. If a large portion of your income goes toward servicing credit cards or personal loans, lenders may view you as over-leveraged. However, if you are using the mortgage to consolidate those debts, or if you can prove the debts will be cleared before the mortgage starts, many lenders will be more flexible with their affordability caps.
Calculations all done? Secure your mortgage today!
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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