How much house can you afford? — UK mortgage calculation 2026
UK mortgage lenders assess affordability in two main ways: income multiples (the maximum loan is typically 4–4.5× combined annual income) and affordability stress tests (checking you can afford repayments if rates rise by 1–3%). Lenders also consider existing debt payments, credit score, age, and employment type.
Standard UK mortgage affordability: 4–4.5× gross annual income. Single buyer earning £35,000: up to £157,500. Joint buyers earning £60,000 combined: up to £270,000. Some lenders offer 5× income (typically for professionals, e.g. doctors, solicitors, with regulated income). The Bank of England requires lenders to limit mortgage lending above 4.5× income to no more than 15% of new business. Existing debts reduce what lenders will offer — a £300/month car loan could reduce your maximum mortgage by £30,000–£40,000.
Minimum 5% deposit for most UK mortgages (95% LTV). At 5%, your mortgage options are limited and rates higher. At 10% (90% LTV), significantly more lenders are available. At 15–20%, most mainstream lender products are accessible. At 25%+ (75% LTV or below), you're eligible for the best rates. For a £250,000 property: 5% = £12,500; 10% = £25,000; 15% = £37,500; 20% = £50,000. Build your deposit efficiently using a Lifetime ISA (government adds 25% bonus up to £1,000/year for first-time buyers aged 18–39).
A strong credit score (Experian 881+, Equifax 420+, TransUnion 781+) typically qualifies you for the highest income multiples and best rates from the widest range of lenders. Adverse credit (missed payments in the last 2–3 years, defaults, CCJs, or a debt management plan) reduces options significantly — you may be limited to specialist lenders with higher rates. Check all three credit agencies (Experian, Equifax, TransUnion) 3–6 months before applying and address any errors or issues before you apply.
Beyond the deposit: stamp duty (if applicable — see our stamp duty calculator); solicitor/conveyancer fees (£1,000–£2,500 including disbursements like Land Registry fees and searches); mortgage arrangement fee (£0–£2,000 — sometimes worth paying for a lower rate); property survey (Homebuyer Report £350–£600; Full Structural Survey £600–£1,500); removal company (£400–£2,500 depending on volume and distance); buildings insurance from exchange of contracts; home appliances and initial maintenance costs. Budget £4,000–£8,000 for buying costs beyond the deposit as a reasonable minimum.
UK lenders typically want monthly mortgage payments (at the stress-tested rate) to be no more than 40–45% of net monthly income. The common personal finance rule is to keep all housing costs (mortgage, insurance, council tax) below 30% of gross income. At 4.75% on a 25-year mortgage: every £100,000 borrowed costs approximately £572/month. For a £200,000 mortgage: approximately £1,145/month. Ensure this is genuinely affordable with a financial buffer — most advisers recommend retaining 10–20% of income as savings after all expenses.