How much mortgage can I get? (affordability guide 2026)
Wondering how much mortgage you can get? This guide explains mortgage affordability and the factors lenders consider, including your income, monthly commitments, and deposit. By understanding the mortgage application process, you can plan your budget, test different scenarios, and see an estimate of the amount you could borrow before applying.
Mortgage affordability calculator
Use our mortgage affordability guide to estimate how much you can borrow based on your income, deposit, and monthly expenses. This tool provides a general overview of potential borrowing and monthly payments to support your budgeting.
Please note, this is only an estimate. Lenders will apply their own criteria when reviewing your application.
Based on what you’ve told us:
Your current monthly payment is about:
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Your estimated monthly payment could be:
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How do lenders decide how much you can borrow?
Lenders evaluate mortgage affordability by reviewing your income, monthly commitments, deposit size, and other financial details. This assessment ensures you can meet repayments both now and in the future. Understanding this process helps you plan your budget and set realistic expectations before applying.
Income multiples (4x–4.75x Rule)
Most lenders use an income multiple to estimate borrowing capacity, typically 4–4.75× your annual income. First time buyers, high earners or applicants in certain occupations may qualify for up to 5–6×. This provides a starting point for how much you could potentially borrow, but lenders will adjust for other financial commitments.
Your monthly commitments
Lenders subtract your monthly debts from your borrowing potential to calculate how much you can borrow. This includes:
- Credit card repayments
- Personal loans
- Car finance
- Childcare costs
- Maintenance or support payments
Accounting for these commitments ensures the lender calculates a realistic loan amount you can afford without stretching your budget.
Stress testing
Banks conduct stress testing to assess whether you could afford payments if interest rates increase. They usually add 2 to 3 percent to the current rate and consider future scenarios such as maternity leave or retirement. This process ensures your mortgage remains affordable if circumstances change.
How much mortgage can I afford?
While knowing your maximum borrowing limit is helpful, prioritising mortgage affordability is essential. Choose a mortgage that fits your budget to ensure manageable payments, maintain financial flexibility, and achieve your homeownership goals without overextending your finances.
What monthly payment feels safe?
When considering mortgage affordability, aim for monthly payments that feel comfortable within your budget. A common guideline is around 25–30% of your net income, leaving room for an emergency buffer.
Factoring in unexpected expenses ensures you can maintain regular repayments without financial stress while still covering household costs and other commitments.
How does deposit affect your mortgage?
The size of your deposit directly affects your loan-to-value (LTV) and the interest rates you can access.
| Deposit | LTV | Impact |
|---|---|---|
| 5 % | 95 % | With a very small deposit, lenders perceive higher risk, resulting in higher interest rates and stricter criteria. |
| 10 % | 90 % | A larger deposit reduces lender risk and can secure lower rates, giving more flexibility in your mortgage options. |
| 15‑20 % | 80‑85 % | Deposits in this range usually offer good rates and wider product choice, making it easier to find competitive deals. |
| 25 %+ | 75 % | A high deposit maximizes your chances of accessing the lowest rates and the most favourable mortgage products. |
How to increase how much you can borrow
You can increase your borrowing capacity by raising your deposit, which lowers the loan-to-value ratio and may encourage lenders to offer higher amounts. Reducing existing debts and improving your credit score also enhance your eligibility.
Adding a joint applicant or selecting a longer mortgage term can further improve affordability. These strategies can help you secure better rates and larger mortgages while staying within your financial limits.
Tell us your mortgage goal — we’ll help you pick the right route.
Example scenarios
The following examples demonstrate borrowing limits and the impact of mortgage affordability.
- Scenario 1: A single applicant earning £35,000 with a 10% deposit may borrow approximately £140,000. Monthly commitments, such as loans or credit cards, can reduce this amount. This borrowing level helps keep repayments manageable and within a safe income proportion.
- Scenario 2: Joint applicants with a combined income of £70,000 and a 15% deposit may qualify for about £332,500. Combining incomes increases borrowing potential, but monthly expenses are still considered to ensure repayments remain comfortable.
- Scenario 3: An applicant earning £100,000 with a 25% deposit could access £475,000 to £550,000. A larger deposit and higher income may secure lower rates and better terms, though lenders will still assess existing debts and overall affordability.
These scenarios highlight how income, deposit size, and financial commitments affect the amount a lender may approve.
Frequently Asked Question
How many times can I borrow my salary?
Most lenders estimate borrowing potential using an income multiple, typically 4 to 4.75 times your annual income. High earners or those with strong financial profiles may qualify for up to 5 to 6 times. Lenders also assess monthly commitments and affordability to ensure you can manage repayments.
Can I get 5x income (or higher)?
Some lenders offer up to five or six times your income, especially for high earners or joint applicants. Eligibility also depends on debts, credit history, and deposit size. Ensure your borrowing aligns with what you can afford each month.
Does a credit score affect how much I can borrow?
Yes, a higher credit score increases your borrowing potential and access to better rates. Low scores or missed payments may reduce the amount offered. Maintaining good credit demonstrates reliability and affordability.
How much deposit do I need?
Deposit requirements typically range from 5 to 25 percent, depending on the lender and property type. A larger deposit lowers your loan-to-value ratio, which can improve rates and increase borrowing capacity. Planning your deposit helps you access suitable mortgage products.
Can I get a mortgage with existing loans?
Yes, but lenders deduct your monthly debts from your borrowing capacity. High repayments reduce the amount you can borrow. Providing accurate information ensures lenders assess affordability correctly.
Does overtime and bonuses count?
Lenders may consider overtime and bonuses if they are regular and documented, usually requiring payslips or employer confirmation. Including a reliable additional income can increase your borrowing potential.
The Smart City Mortgages experts are happy to tell you more
Next steps
When you are ready to proceed, you can apply for a mortgage using one of three methods:
- Obtain a Decision in Principle (DIP) to determine how much you may be able to borrow before making a commitment.
- Consult a mortgage adviser to compare affordability between lenders, choose the most suitable product, and apply and guide you through the application process.
- Review mortgage rates online to find the most competitive options for your needs.
Selecting the right approach can streamline your application and help you secure a mortgage that meets your financial requirements.
