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Mortgages · 6 min read

How much can I borrow on a mortgage?

Two caps decide it: a multiple of household income, and a stress-tested monthly surplus. You get the lower of the two. Here is how UK lenders calculate both.

Last updated: September 2026

Key takeaways
  • ✔ Most lenders cap at 4–4.5× household income; a few specialists go higher
  • ✔ The stress test, not the headline rate, often sets the real maximum
  • ✔ Existing debts reduce the surplus — sometimes by more than you expect
  • ✔ Deposit sets the LTV cap; income sets the multiple. The lower one wins
  • ✔ Online calculators are a starting point, not an offer

The two caps

Every residential mortgage is limited twice:

  1. Income multiple. A ceiling expressed as a times-salary figure, usually 4–4.5× household income.
  2. Affordability surplus. A monthly payment you can still make after existing commitments, tested at a higher notional rate than you are being offered.

Plenty of income and a lot of car finance? The surplus cap wins. Modest income and no other debts? The multiple wins. Online “how much can I borrow” widgets usually only show the multiple, which is why they over-promise.

Worked examples

Household income4.5× multipleTypical real-world range
£35,000 single£157,500£130,000–£155,000 after commitments
£55,000 single£247,500£200,000–£245,000
£45,000 + £35,000 joint£360,000£300,000–£355,000
£80,000 + £40,000 joint£540,000£450,000–£530,000

The “real-world range” is the multiple after a typical set of commitments — a car on finance, a card balance, a student-loan deduction. Clear those and the number moves up. Add a second car and it moves down.

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What lenders count as income

  • Basic salary — counted in full, evidenced by payslips and often a bank statement.
  • Bonus, overtime, commission — usually averaged over two years and counted at 50–100%, depending on the lender and how regular it looks.
  • Self-employed — typically an average of the last two or three years’ net profit or salary-plus-dividends. A single strong year after two thin ones is averaged down.
  • Contractors — often treated as a daily rate × a set number of days, with a requirement for a run of renewals.
  • Pension, maintenance, some benefits — accepted by some lenders, declined by others. Say what the income is at the start rather than after a decline.

The deposit is a different cap

Income decides the maximum loan. The deposit decides the maximum loan against this property. A 5% deposit on a £300,000 house is a £285,000 loan — but only if income supports £285,000. If the multiple only supports £200,000, the extra deposit does not raise the loan; it just means you are looking at a cheaper house, or waiting.

This is the calculation first-time buyers trip over. Saving another £5,000 of deposit feels like progress. If the income cap is the binding constraint, that £5,000 does not increase what you can borrow. It slightly improves the rate on a loan you already qualified for.

Frequently asked questions

How much can I borrow on a mortgage in the UK?
Most lenders offer 4–4.5 times household income. A few specialists go to 5 or 5.5 times for higher earners with low existing commitments. The multiple is a ceiling, not a promise — the affordability stress test can cut it back.
Does my partner’s income count?
Yes, on a joint application. Lenders add both incomes and both sets of commitments. A second income usually increases the maximum more than it increases the commitments, which is why joint applications borrow more.
What is an affordability stress test?
The lender does not test the payment at the rate you are being offered. It tests at a higher notional rate, to check you could still pay if rates rise after the fix ends. That is why two applicants on the same salary get different maximums — the existing commitments decide how much headroom is left.
Do debts reduce how much I can borrow?
Yes. Credit-card balances, car finance, personal loans, student-loan deductions and regular maintenance all reduce the surplus the lender will treat as available for a mortgage. Clearing an expensive commitment before you apply can raise the maximum by more than the cash you spent doing it.
Does the deposit change how much I can borrow?
The deposit sets the maximum loan as a percentage of the property price (the LTV). Income sets the maximum loan as a multiple of salary. You can borrow the lower of the two. A large deposit on a small income still produces a small loan.
Can I borrow more as a first-time buyer?
Not usually as a multiple. First-time buyer status unlocks 95% LTV products, which lets you borrow more against a given price, not more against a given salary. The income cap is the same.

Related guides

Guide
First-time buyer mortgages

Deposit bands, Shared Ownership and the application timeline.

Guide
How much can I borrow on a secured loan?

The equity cap and the income cap on a second charge.

See what you could borrow

Soft-search only. An adviser runs the multiple and the surplus, not just a website widget.

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Important: This guide is for information only and does not constitute financial advice. Multiples and stress tests vary between lenders and change over time. Your home may be repossessed if you do not keep up repayments on your mortgage. CleverCompare is an introducer appointed representative of Charles Frank Finance Limited, which is authorised and regulated by the Financial Conduct Authority.
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