One of the first questions every home buyer asks is: how much can I actually borrow?
In the UK, mortgage lenders use a combination of your income, outgoings, and credit history to decide how much they’re willing to lend.
In this guide, we’ll break it down in simple terms so you can quickly estimate what you might be able to afford.
QUICK ANSWER
Most lenders will offer:
👉 4 to 4.5 times your annual income
Example:
- £30,000 salary → £120,000–£135,000 mortgage
- £50,000 salary → £200,000–£225,000 mortgage
WHAT AFFECTS HOW MUCH YOU CAN BORROW
1. Your Income
- Salary
- Bonuses
- Self-employed earnings
2. Your Monthly Expenses
- Loans
- Credit cards
- Childcare
- Car finance
3. Your Credit Score
- Missed payments reduce borrowing
- Strong credit = better deals
4. Deposit Size
- 5% deposit → lower borrowing power
- 10%–20% → better rates + more flexibility
REALISTIC BORROWING (IMPORTANT SECTION)
Just because you can borrow a certain amount…
👉 Doesn’t mean you should
Lenders also use affordability checks based on:
- Rising interest rates
- Cost of living
SIMPLE RULE OF THUMB
If your monthly mortgage would exceed 30–35% of your income, it may be risky.
COMMON MISTAKES
- Forgetting bills and living costs
- Borrowing at your maximum limit
- Not budgeting for rate increases
Want a more accurate figure? Check our full mortgage cost breakdown and salary guides to plan your budget properly.