Get Your Best Mortgage Deal, Completely Fee-Free!
WE WORK WITH 90+ MORTGAGE LENDERS
In this guide:
    Add a header to begin generating the table of contents

    Before you start the process of getting a mortgage, you will want know your mortgage affordability, in other words how much mortgage you can get. This is a vital first step in your mortgage journey so you can know what property value you can start house hunting for.

    How To Calculate Mortgage Affordability

    As a rule of thumb, mortgage affordability is calculated based on 4.5 times your income. This would be based on fitting the mortgage lender’s criteria and having little to no debt and an average UK income of around £28,000.

    Mortgage Affordability Calculation Examples:

    Single Income Mortgage Affordability: For an individual looking to get a mortgage on their own and with the applicants income being an average income of £28,000, the estimated mortgage affordability would be £126,000 (4.5 times £28,000).

    Joint Income Mortgage Affordability: If considering a getting a mortgage using joint income lets assume you are both on the same income. The joint income would equate to (£56,000), the estimated mortgage affordability for your joint mortgage would be £252,000 (4.5 times £56,000).

    Determining how much mortgage you can secure is a critical step when planning to buy a home. To get a clearer picture of your potential borrowing capacity, here’s a more focused guide:

    Understanding Mortgage Affordability: How Much Mortgage Can I Get?

    “Gaining clarity on how much mortgage you can afford is a vital step in your journey towards home ownership.” This understanding shapes your search and sets realistic expectations for the properties you can consider. Here’s what to focus on:

    1) Understanding Your Borrowing Capacity: Before embarking on house hunting, it’s crucial to ascertain your mortgage affordability. This aids in establishing a realistic property value bracket you can target.

    2) Lender’s Mortgage Affordability Calculators: Lenders utilise specialised calculators to gauge how much they can lend to you. These tools evaluate your financial scenario, focusing on income, outgoings, and potential mortgage repayments.

    3) Factors Influencing Mortgage Amount: Your earnings significantly influence your borrowing power. Lenders typically base their calculations on your income. Existing debts and regular outgoings are scrutinised to ensure you can comfortably manage mortgage payments. Additionally, the magnitude of your deposit can affect the mortgage amount, with a larger deposit potentially enhancing borrowing capacity.

    4) Navigating the Mortgage Market: The market is offers around 14,000 mortgage deals from 90+ mortgages lenders, each presenting unique terms and conditions.

    5) Steps to Determine Your Maximum Mortgage: This involves collating details of your income, outgoings, and savings, employing multiple affordability calculators for a more comprehensive perspective, and considering the counsel of a mortgage broker for deeper insights and access to a broader range of products, which might offer more favourable rates and terms.

    6) Additional Considerations: The impact of interest rates and monthly repayments on your overall mortgage cost is critical. It’s also important to ensure that the mortgage remains manageable over the long term, even if interest rates rise.

    By adhering to these guidelines, you will be better positioned to estimate the amount of mortgage you can secure, an integral part of your journey towards buying a home. Keep in mind, each lender’s criteria can differ, so exploring a variety of options is

    How much of a mortgage can I get based on salary?

    Wondering How many times my salary for a mortgage? Technically speaking, calculating how much you could borrow with the “times salary method” stopped in 2014. Since then banks and building societies now use mortgage calculators to stress test your affordability. This is because it is essential that the monthly mortgage payments are very affordable to you and your income, even if your rate was to go up slightly. Lenders will now look at the overall cost to you and if your finances fit the mortgage shape and size you are looking to achieve.

    Discover Your Mortgage Affordability
    Put the odds of a successful mortgage in your favour. Connect with our qualified and experienced fee-free mortgage brokers today for a thorough affordability assessment and expert guidance on your home-buying journey.

    Mortgage Affordability Calculator

    All Banks and building societies these days use a mortgage affordability calculator to calculate how much you can borrow. They can be called affordability calculators, mortgage calculators as well as remortgage calculators.

    Using a mortgage affordability calculator to work out how much you could borrow

    Mortgage calculators are great but our advisors always recommended using them with a pinch of salt. This is because each mortgage lender has its own unique mortgage calculator alongside its lending and affordability criteria which greatly differ from lender to lender and will give you very different and sometimes incorrect amounts.

    Each lender has its very own way of looking at your financial commitments when these are entered into the affordability calculator. The fields you need to be very accurate with are annual income, outstanding loans, child maintenance, and utility bills to name a few!

    Enter your sole or joint income below and see how much you can borrow.

    For a more detailed and personalised mortgage affordability, use our Mortgage Affordability Calculator here >

    Using a mortgage calculator to work out your monthly payments

    Below we have what we call a simple mortgage repayment calculator. This will help you to work out what mortgage you could afford based on what your mortgage repayments could be. If you are asking yourself “is there a joint mortgage calculator”, the answer is technically no. The mortgage calculators tend to be based on income and mortgage amounts, therefore are not biased towards sole applicants and cover both sole and joint applicants.

    Mortgage Repayment Calculator: Working out what monthly repayments you can afford

    To assist you in planning your finances and mortgage affordability, our Mortgage Repayment Calculator is designed to help you determine the monthly repayments you can comfortably afford.

    years
    Monthly Repayment: Total Interest Paid:
    Please note: This calculation is a guide to how much your monthly repayments would be. The exact amount may vary from this amount depending on your lender's terms.
    Discover Your Mortgage Repayment Options Now — Absolutely Free!

    Mortgage Lenders Affordability Assessments

    Lenders will base the maximum borrowing amount on income and an overall mortgage affordability test. Each lender uses their own mortgage affordability calculator to prove that you can afford your mortgage repayments very easily and without any financial strain, and be able to afford the monthly payments on your mortgage. Because each lender has its own mortgage calculator, it’s important to use quite a few of them. The reason is that each bank and building society has its own mortgage calculator for working out the amount of mortgage you can have. A mortgage broker has access to all these mortgage lenders’ calculators and is able to find you the lowest interest rate and monthly payment.

    Lenders look at your affordability on a case-by-case basis, however below is an overview of 4 of the most common assessments lenders complete to calculate affordability.

    1) Debt-to-income ratio

    Lenders will measure your debt-to-income ratio (DTI) to determine how much of your income is going towards repaying debts. Usually, people assume affordability is just calculated on the income required for mortgage approval. However, the DTI factor plays a crucial role in deciding whether you can afford a mortgage or not. Generally, lenders prefer for the DTI to be 36% and under; however, this could vary depending on who you are working with as well as what type of loan it is that you are applying for. The lower your DTI ratio, the better because then there’s more disposable income that can go into paying off some of the mortgage balance each month.

    2) Affordability stress tests

    When choosing a mortgage deal, it is crucial to take into account the lenders’ affordability stress tests. This process determines whether you can maintain your mortgage payments if interest rates were to rise by calculating your financial capacity based on an assumed enhanced rate. Performing this test will ensure that you are able to comfortably manage any changes in your monthly repayments.

    3) Maximum loan-to-value (LTV) ratio

    When selecting a mortgage that is suitable for your monthly payment budget, it’s prudent to consider the maximum loan-to-value (LTV) ratio. This figure displays what percentage of the property value a lender will agree to lend you after an affordability assessment and varies between lenders depending on which type of mortgage deal you are applying for. As the LTV ratio increases, so does your ability to pay less money upfront in terms of deposit amount; however, there may be a consequence as higher interest rates and monthly payments could become applicable.

    4) Credit Score

    A bad credit score can affect how much you can borrow. As all lenders will check your credit history it is highly advised that you check your credit score and get it into shape at least six months before you start looking for your new home. To check your credit history and credit rating go to a company website that offers a credit score review such as Experian, ClearScore, and Checkmyfile UK.

    Discover Your Mortgage Affordability
    Put the odds of a successful mortgage in your favour. Connect with our qualified and experienced fee-free mortgage brokers today for a thorough affordability assessment and expert guidance on your home-buying journey.

    Proof of Mortgage Affordability: Getting a Mortgage in principle (MIP)

    Once you know how much mortgage you can afford the next step is proving your affordability. Showing potential estate agents and sellers that you are a serious buyer is made easier with a Mortgage in Principle (MIP), also known as a Decision in Principle. This document provides an indication of how much the lender may be inclined to offer based on your income, credit score, and other conditions. You can get this from a mortgage broker – it’s usually valid for 90 days giving you plenty of time to find your perfect home!

    Which services shall I use to calculate how much mortgage I can get?

    Most things in life work out far better if a little time is spent planning before you start! The same goes for anyone planning a move or if you’re needing a remortgage. Each of the 90-plus different Banks and Building Societies in the UK has its own underwriting and lending criteria. Therefore although you may be asking “how do I get the maximum mortgage possible?”; getting your maximum mortgage will very much depend on your own financial situation.

    Achieving the average UK mortgage is very possible however it will depend on which mortgage lender you choose for your financial situation. Some lenders have a preference for lending more to the employed and some lenders will lend more to you if you have no loans or credit cards. The size of your deposit will also come into play giving you better mortgage rates and lower mortgage payments.

    1) Shop around for the best mortgage deals

    There are over 90 different providers with over 14,000 mortgage products and interest rates including ‘specialist lenders’. It would be advisable to get the help of a fee free mortgage broker who will have access to the ‘whole market lender’s calculators as well as other mortgage tools. These mortgage calculators will be able to work out your affordability for the monthly payments. A fee-free broker will be able to do all the research on your behalf whilst supporting you throughout the process.

    2) Using a Mortgage comparison website

    This is not a bad place to start however you need to be aware that most of the comparative websites are not whole of market and in fact, most will only compare mortgages from a handful of lenders so tread carefully.

    3) Using the professional services of a fee-free mortgage broker

    You can get fee-free mortgage advice from a broker like YesCanDo who will help you find and choose the right mortgage for you. They will provide you with a personalised borrowing amount at your best available interest rate and therefore lowest monthly repayments. Brokers compare mortgages in a more efficient way than most comparison websites. They also compare mortgage deals and mortgage rates from every lender to make sure you have the very best new mortgage deal with a trusted lender. YesCanDo is also known for having an extremely high level of customer service. Take a look at our reviews!

    Discover Your Mortgage Affordability
    Put the odds of a successful mortgage in your favour. Connect with our qualified and experienced fee-free mortgage brokers today for a thorough affordability assessment and expert guidance on your home-buying journey.

    Introducing YesCanDo Money a Fee Free Online Mortgage Broker

    YesCanDo Money is one of the UK’s leading FREE mortgage brokerages, covering the whole of the UK. They offer free online mortgage advice, as well as telephone, video calls, and face-to-face appointments. Whether you want to renew your current mortgage and the end of its mortgage term or get a new mortgage for a brand-new property, we can help.

    Started over 30 years ago YesCanDo Money thrives on being a caring family-run business that has grown by giving exceptional service to its clients. This can be confirmed by reading the hundreds of Trustpilot and Google 5-Star reviews!

    Mortgage Affordability – FAQs

    Mortgage affordability criteria vary by lender but generally include your income, debts, credit score, and outgoings. Lenders assess your ability to sustain mortgage payments, considering factors like your debt-to-income ratio and potential future interest rate increases.

    The amount of mortgage you can get based on salary typically ranges from 4 to 4.5 times your annual income. This can vary based on other factors like credit history, debts, and the lender's specific criteria.

    Getting a mortgage 5 times your salary is less common and typically requires a strong financial profile, including a high credit score, a stable and higher than average income, and low debt-to-income ratio. Each lender's criteria will ultimately determine this possibility.

    On a £30,000 salary, using the general rule of 4.5 times your income, you might borrow up to £135,000. However, this depends on the lender's criteria and your financial circumstances, including debts and credit score.

    To secure a £110,000 mortgage in the UK, you would likely need to earn between £24,444 to £27,500 per year. This estimate assumes lenders offer between 4 to 4.5 times your annual income, subject to their specific lending criteria.
    To obtain a £250,000 mortgage, you generally need to earn between £55,556 to £62,500 annually, considering the standard lending criteria of 4 to 4.5 times your income. Lenders will also consider your debt and creditworthiness.
    Share this post:
    Facebook
    Twitter
    Email
    WhatsApp
    Grant Humphries (CeMAP)
    Grant Humphries (CeMAP)

    Grant Humphries (CeMAP) is a proficient Mortgage & Protection Adviser at YesCanDo Money. With a career spanning since 2001, Grant has honed his expertise in understanding lenders' criteria, complex financial situations, and the nuances of the mortgage market. His deep knowledge enables him to provide tailored solutions, especially for professionals and those with unique financial profiles. At YesCanDo, Grant's commitment to excellence is evident. He takes pride in guiding clients through their mortgage journey, ensuring they feel confident and informed at every step. From first-time buyers to seasoned investors, Grant's analytical approach and dedication make him a trusted adviser in the financial landscape

    Contact Us

    Other Mortgage Affordability Guides

    £170,000 Mortgage Approval: Repayments & Lender Guide

    If you’re looking to buy a property worth £170,000, you will be keen to know if lenders would be willing to lend you enough money ...
    Read More →

    Discover How Much Can You Borrow for a Mortgage UK

    If you’re in need of a mortgage, you will understandably want to know how much you can borrow. In this guide, we will consider your ...
    Read More →

    Mortgage Affordability: What Mortgage Can I Afford?

    Before you start the process of getting a mortgage, you will want know your mortgage affordability, in other words how much mortgage you can get. ...
    Read More →

    What is the average mortgage in the UK?

    The Office for National Statistics (ONS) has indicated that the current average mortgage in the UK is now around £189,503 at the end of 2023, ...
    Read More →

    How to Secure a Mortgage 5 Times Salary

    Obtaining a mortgage 5 times your salary, surpassing the typical 4.5 times income mortgage, is achievable under specific conditions. If you are about to search ...
    Read More →

    £700,000 Mortgage UK: Complete Eligibility and Repayment Guide

    Understanding the intricacies of managing a £700,000 mortgage in the UK is essential, particularly for above-average loan amounts. This guide aims to demystify the process ...
    Read More →

    Getting A Joint Income Mortgage: Maximise Your Borrowing

    Securing a joint income mortgage allows for borrowing beyond individual income by pooling resources with partners or friends. If you want to move into a ...
    Read More →

    What is a Mortgage Affordability Test?

    Are you considering applying for a mortgage and wondering how much mortgage can I get? If so, it’s important to understand how lenders calculate affordability—what ...
    Read More →

    Single Person Mortgage

    If you’re looking to take your first step on the property ladder as a single person, you might be considering your mortgage options. As you ...
    Read More →

    What is the repayment on a 200k Mortgage?

    The average mortgage in the UK for 2024 is around £200,000 which is a significant rise of 24.2% since 2020. With this said it is ...
    Read More →

    Can I Get a Mortgage for £130k?

    Are you considering a £130,000 mortgage? This essential guide is designed to illuminate and guide you through obtaining this mortgage amount. Perfect for first-time buyers, ...
    Read More →

    What credit score is needed to buy a house?

    When applying for a mortgage loan, lenders will take a number of factors into account before they approve your application. One factor is your credit ...
    Read More →

    Securing a £350,000 Mortgage: Essential Guide to Approval and Monthly Repayments

    While the UK’s average mortgage hovers around £200,000, achieving a £350,000 mortgage is feasible with the right income and deposit. Read on to learn more ...
    Read More →

    Qualifying for a £250,000 Mortgage: What You Need to Know

    The average mortgage in the UK is around £200,000, so getting a mortgage for £250,000 is just above average and therefore very possible. Read on ...
    Read More →

    UK Mortgage Affordability Rules

    Sometimes it feels like you have to jump through hoops to get a mortgage, but it’s actually due to how mortgage affordability is calculated. By ...
    Read More →

    Repayments on a £150K Mortgage: Your Essential Guide

    Exploring Repayments on a £150K Mortgage? You’re in the right place! Understanding your monthly repayments on 150k mortgage is crucial when considering a £150,000 mortgage. ...
    Read More →

    £500,000 Mortgage: Your Guide to Eligibility & Repayments

    Understanding monthly repayments for a £500,000 mortgage is crucial, as this amount significantly exceeds the UK’s average mortgage. This guide simplifies the complexities of securing ...
    Read More →

    Income Mortgage Multiples Explained

    A common question asked by our customers is this one: What size mortgage can I get with my income? Mortgage lenders will base the borrowing ...
    Read More →

    Understanding repayments on a mortgage for £180000

    Requesting a mortgage loan amount of £180,000 is not unusual given that the average mortgage in the UK stands at around £200,000. However, your most ...
    Read More →

    How Much Do I Need to Earn to Get a Mortgage: A Complete Guide

    Wondering “How much do I need to earn to get a mortgage?” You’re in the right place. In this guide, we will consider what you ...
    Read More →

    £400,000 Mortgage: Your Guide to Eligibility & Repayments

    If you’re looking to buy a house that requires a £400,000 mortgage, you will likely want to know what your monthly repayments might be. This ...
    Read More →

    Securing a Mortgage 4.5 times Salary: Full Guide

    Securing a mortgage can be both exciting and daunting. You might be surprised to learn that in some cases, it’s possible to borrow more than ...
    Read More →

    £300,000 Mortgage: Your Guide to Eligibility & Repayments

    Understanding the details of a £300,000 mortgage is more than just about numbers. It’s about assessing your eligibility, figuring out what you can comfortably afford, ...
    Read More →

    Can I get a £600000 mortgage and what will the repayments be?

    If you’re seeking to purchase your dream home with a £600,000 mortgage, it is essential that you research and understand the associated monthly repayments. This ...
    Read More →
    Scroll to Top
    This website uses cookies to improve your experience. If you continue we’ll assume you’re happy. See our privacy policy for more information.