How much can I borrow?
Buying a home is a big financial decision, and understanding your mortgage options is key. Our mortgage calculator helps you estimate how much you could borrow and what your potential monthly repayments might be. This allows you to plan your budget with confidence before starting your property search.
Mortgage calculator
Disclaimer: This calculator provides an estimate based on a repayment mortgage and should be used as a guide only. Your actual mortgage terms may vary. Failure to keep up with repayments could result in your home being repossessed.
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Understanding Your Estimate
Your estimated mortgage amount is typically based on around 4.5 times your annual income. Monthly repayments are then calculated using the loan amount, interest rate, and repayment term, assuming a standard repayment mortgage.
Plan Your Mortgage with Confidence
Use this estimate to compare different mortgage options and see how changes in deposit size, interest rates, or loan terms could affect your payments.
Adjusting Your Mortgage Offer
If your circumstances change, speak to a mortgage advisor to reassess your options. Updating your deposit amount or loan term could improve your mortgage terms.
Mortgage FAQs
Buying a home is an exciting step, but understanding how much you can borrow is key to planning your budget.
Here are answers to some of the most common questions about mortgages and borrowing limits.
Applying for a mortgage typically involves the following steps:
- Check your credit score and financial situation.
- Research lenders or speak to a mortgage broker.
- Get an Agreement in Principle (AIP) to understand what you may be able to borrow.
- Gather necessary documents such as proof of income, bank statements, and ID.
- Submit a full mortgage application once you have found a property.
Lenders assess your borrowing capacity based on:
- Your income and employment status.
- Monthly outgoings, including debts and living expenses.
- Your credit history and score.
- The size of your deposit.
- The lender’s affordability criteria and stress tests.
Most lenders require at least a 5% deposit, but putting down 10-20% may secure better interest rates. Higher deposits reduce the loan-to-value (LTV) ratio, making you a lower-risk borrower.
To discuss your options:
Lenders consider:
- Your income and employment type (salaried, self-employed, freelance).
- Existing financial commitments (loans, credit cards, childcare costs).
- Credit score and repayment history.
- The property’s value and type.
- Repayment mortgages: You pay both interest and capital, meaning you fully own your home by the end of the term.
- Interest-only mortgages: You only pay interest each month and will need a plan to repay the full loan at the end of the term. This option is less common for residential buyers.
To find out which option suits you best
- Fixed-rate mortgages: Your interest rate stays the same for a set period, providing stability.
- Tracker mortgages: The interest rate moves in line with the Bank of England base rate.
- Variable-rate mortgages: The lender can change the rate at any time, meaning payments could rise or fall.
To see what works best for you.
A mortgage broker can help by:
- Searching the market for the best deals.
- Advising on suitable mortgage options for your financial situation.
- Managing paperwork and liaising with lenders on your behalf.
- Accessing exclusive deals not available to the public.
Lenders will:
- Review your income and regular expenses.
- Assess how well you manage debt.
- Conduct stress tests to check if you could afford repayments if interest rates rise.
- An Agreement in Principle (AIP) can be obtained within 24 hours.
- A full mortgage application may take 2-6 weeks, depending on the lender and your circumstances.
Yes, but you may need to provide additional proof of income, such as:
- At least two years’ worth of tax returns and accounts.
- SA302 forms from HMRC.
- Evidence of consistent earnings and future work contracts.
If you have any further questions, speak to one of our mortgage advisors for tailored advice on your borrowing options.