How Much Can I Borrow?
Estimate your borrowing power based on your income and financial commitments.
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Last reviewed: 21 July 2026. Figures and rules on this page were checked against the linked official sources on that date. This page is general information, not financial advice, and the results above are estimates - lenders make their own decisions.
How lenders decide what you can borrow
According to MoneyHelper - the government-backed money guidance service - the most you can borrow is usually capped at around four-and-a-half times your annual income, but this is not guaranteed and most people are offered less. Lenders look at your income, your outgoings and the security of your employment, and they must check you could still afford the repayments if interest rates rose or your circumstances changed. See MoneyHelper's guide.
This calculator deducts your annual committed spending from your combined income and shows an illustrative range - a conservative 3 times income, the typical 4.5 times, and an upper 5.5 times that some lenders can reach in limited circumstances. Treat the result as a planning estimate, not an offer.
What lenders check
- Income - basic pay, plus pension or investment income, child maintenance, and variable earnings such as overtime, commission or bonuses (treated differently by each lender). Self-employed applicants typically need two to three years of tax returns and accounts.
- Committed spending - regular household bills, debts such as loans and credit cards, Council Tax, childcare and subscriptions, to make sure enough is left for the repayments.
- Rate rises - FCA rules require the impact of likely future interest rate increases to be considered over at least five years, unless your rate is fixed for five years or more. Firms set their own basis for the test, so there is no single figure to plan around (FCA).
Deposits and loan-to-value
You usually need a deposit of at least 5% to 10% of the price - £12,500 to £25,000 on a £250,000 home. The rate you are offered often depends on your loan-to-value ratio (LTV): the loan compared with the property's value. A larger deposit means a lower LTV and usually a better deal, with around 60% LTV typically attracting the most competitive rates (MoneyHelper).
Government schemes open in 2026
| Scheme | What it offers |
|---|---|
| Lifetime ISA | 25% government bonus on savings (up to £1,000 a year) towards a first home costing £450,000 or less. A 25% charge applies to withdrawals for other purposes. |
| Shared ownership | Buy a 10% to 75% share of a home and pay rent on the rest, with a deposit based only on your share. Household income limits apply (£80,000, or £90,000 in London). |
| First Homes | England only - eligible first-time buyers can pay 30% to 50% below market value on qualifying new homes, subject to price and income caps. |
| 2025 Mortgage Guarantee Scheme | Permanent scheme (from July 2025) supporting 91-95% loan-to-value mortgages - helping buyers with a 5% deposit. |
Eligibility conditions apply to every scheme - check the gov.uk pages for the current rules before planning around one.
Frequently asked questions
How much can I borrow for a mortgage?
MoneyHelper - the government-backed money guidance service - says the most you can borrow is usually capped at four-and-a-half times your annual income, but this is not guaranteed and most people are offered less. Lenders decide based on your income, outgoings and the security of your employment, not a formula alone. See MoneyHelper's borrowing guide.
How does this calculator work?
It is an illustration, not a lending decision. We deduct your annual committed spending from your combined income, then show a range: a conservative 3 times income, a typical 4.5 times - the cap MoneyHelper describes as usual - and an upper 5.5 times, since some lenders can exceed the typical cap in limited circumstances. Your actual offer depends on the lender's full affordability checks.
What counts as income?
Lenders will typically consider your basic income plus income from a pension or investments, child maintenance, and earnings such as overtime, commission, bonuses or a second job - though how much of the variable part counts differs by lender. If you are self-employed, expect to provide roughly two to three years of tax returns and business accounts. Source: MoneyHelper.
What deposit do I need?
Usually at least 5% to 10% of the property price - £12,500 to £25,000 on a £250,000 home. The interest rate you are offered often depends on your loan-to-value ratio (LTV): a bigger deposit means a lower LTV and usually a better rate, with around 60% LTV typically getting the most competitive deals. Source: MoneyHelper's deposit guide.
Will the lender stress-test my application?
Lenders check you could still afford repayments if interest rates rose or your circumstances changed - looking at your regular bills, debts, childcare and other committed spending as well as income. FCA rules require the impact of likely future rate rises to be considered over at least five years, except where your rate is fixed for five years or more - and firms set their own basis for that test, so there is no single percentage to plan around. See the FCA's guidance.
Can we borrow more with a joint application?
Generally yes - lenders work out the loan-to-income ratio on the combined annual income of everyone buying together, so a joint application usually supports a larger loan than either income alone. Enter both incomes above to see the difference. Source: MoneyHelper.
What is an Agreement in Principle?
An agreement (or decision / mortgage) in principle is a written indication from a lender of how much it might lend you, typically valid for 30 to 90 days. It is not a formal offer. The lender will run a credit check - some use a soft check that leaves no mark, others a hard check that is visible on your file, so ask which if you are unsure. Source: MoneyHelper.
Are there government schemes that could help?
Several are open in 2026. A Lifetime ISA adds a 25% government bonus (up to £1,000 a year) towards a first home costing £450,000 or less - watch the 25% withdrawal charge for other uses. Shared ownership lets you buy a 10% to 75% share and pay rent on the rest. First Homes offers eligible first-time buyers in England 30% to 50% off market value. And the permanent 2025 Mortgage Guarantee Scheme supports 91-95% loan-to-value mortgages, helping buyers with a 5% deposit. Eligibility rules apply to each - start at gov.uk/lifetime-isa, gov.uk/shared-ownership-scheme, gov.uk/first-homes-scheme and the 2025 Mortgage Guarantee Scheme.
What other costs should I budget for?
Beyond the deposit, budget for stamp duty (use our stamp duty calculator), legal fees, searches, surveys, mortgage fees and removals - MoneyHelper estimates fees can exceed £5,000 excluding the deposit and stamp duty. Then sense-check the monthly payment itself with our mortgage repayment calculator, remembering everyday costs like energy, Council Tax, insurance and food sit on top.
This page is general information, not financial advice. Results are computer-generated estimates based on what you enter - lenders have their own criteria and will need far more detail. For personal advice, speak to a mortgage adviser; free, impartial guidance is available from MoneyHelper.