How Much Can I Borrow?

One of the first questions every homebuyer asks is: how much can I borrow? Understanding how lenders calculate your borrowing limit helps you plan your property search realistically.

How lenders calculate affordability:

  • Income assessment:
    Lenders look at your gross income (salary, bonuses, overtime, self-employment income, etc.).

  • Debt and outgoings:
    They consider your existing financial commitments such as credit cards, loans, childcare, car finance, or maintenance payments.

  • Credit score:
    Your credit history affects both your borrowing capacity and the interest rate offered.

  • Affordability stress tests:
    Lenders run scenarios assuming higher interest rates to ensure you could still afford payments if rates rise.

  • Loan-to-Income multiples:
    Typically lenders offer 4 to 4.5 times your gross annual income — but higher multiples may be available for certain professions or with larger deposits.

Other factors affecting borrowing:

  • Deposit size

  • Property type

  • Employment status

  • Type of mortgage applied for (residential, buy-to-let, self-employed, etc.)

We provide an accurate assessment before you apply, so you know what budget you can safely work within.

"Every lender uses different affordability calculations. We know how each lender works and will give you a realistic borrowing figure from the outset, helping you avoid disappointment and ensuring you stay within safe, manageable limits."