“How much can I borrow?” is usually the first question anyone asks before house-hunting — and the honest answer is that it depends on more than just your salary. Lenders run a full affordability assessment, not just an income multiple. Here’s how it actually works, and how to get a realistic figure before you start viewing properties.
The Quick Answer: Income Multiples
As a starting point, most UK lenders will offer 4 to 4.5 times your gross annual income. Some lenders extend this to 5 or 5.5 times income for specific professions (such as doctors, accountants, or solicitors), larger deposits, or higher earners above a certain threshold. Joint applications use combined income from both applicants.
Use our Loan-to-Value calculator below alongside your income multiple to see how your deposit affects what’s realistically available:
LTV Calculator
Work out your Loan to Value (LTV) percentage.
Illustrative calculation only. Your lender may assess LTV using its own valuation and lending criteria.
Why Income Multiples Aren’t the Full Story
An income multiple gives you a ballpark, but lenders don’t stop there — they run an affordability assessment that also checks:
- Regular outgoings: existing loans, credit card balances, car finance, and other credit commitments
- Dependants: children or other dependants reduce disposable income assumptions
- Committed spending: childcare, insurance, and other regular costs you’ve declared
- Credit history: missed payments or a low credit score can reduce what’s offered, regardless of income
- Employment type: self-employed applicants typically need 2–3 years of accounts or tax returns
Stress Testing: The Hidden Factor
Lenders don’t just check whether you can afford repayments at today’s rate — they “stress test” your application by checking affordability at a rate roughly 3 percentage points above the reversion rate (the rate you’d move to after your initial deal ends). This protects both you and the lender if rates rise, but it also means your maximum borrowing can be lower than a simple income-multiple calculation suggests.
Worked Example
| Scenario | Gross Annual Income | Typical Multiple | Estimated Maximum Borrowing |
|---|---|---|---|
| Single applicant | £35,000 | 4.5x | £157,500 |
| Single applicant, professional scheme | £45,000 | 5.5x | £247,500 |
| Joint application | £60,000 combined | 4.5x | £270,000 |
| Joint application, higher earners | £90,000 combined | 4.5x | £405,000 |
These are illustrative starting points only. Your actual maximum will depend on the full affordability check described above.
How Your Deposit Affects Borrowing
The amount you can borrow is separate from — but connected to — your deposit. A larger deposit lowers your loan-to-value (LTV) ratio, which can unlock better rates and, in some cases, access to lenders offering higher income multiples. Most lenders require a minimum 5–10% deposit, with 15–20%+ typically needed to access the most competitive rates.
Frequently Asked Questions
How much can I borrow based on my salary?
Most lenders offer 4 to 4.5 times gross annual income as a starting estimate, rising to 5–5.5 times for some professions or larger deposits. Speak to an adviser with your full outgoings for a realistic figure rather than relying on the multiple alone.
Do lenders count bonuses and overtime as income?
Many do, but often only a percentage (commonly 50–100% depending on the lender) and usually only if it’s a consistent, provable part of your earnings over 2–3 years. Policies vary significantly between lenders.
Does my credit score affect how much I can borrow?
Yes — a lower credit score can reduce the amount offered or limit which lenders will consider you, even if your income would otherwise support a higher loan. Checking your credit report before applying is a sensible first step.
Can self-employed people borrow the same as employed applicants?
Self-employed applicants can access similar multiples, but lenders typically require 2–3 years of accounts or SA302 tax returns to verify income, and some average income across those years rather than using the most recent figure.
What’s the difference between “how much can I borrow” and “how much can I afford”?
Borrowing capacity is what a lender will offer based on income and outgoings. Affordability is a personal judgement — even if a lender offers you a higher amount, it’s worth checking the resulting monthly payment fits comfortably within your actual budget, including bills, savings, and unexpected costs.
Next Steps
Use the Loan-to-Value calculator above to see how your deposit changes your position, then check our Mortgage Repayment Calculator to see what your monthly payment would look like at that loan size, or get in touch for a personalised affordability assessment.
This article is for general information only and does not constitute personalised financial advice. Lending decisions are subject to individual lender criteria and status. Your home may be repossessed if you do not keep up repayments on a mortgage secured against it.