Income
Lenders may consider basic salary, self-employed income and certain additional income. The evidence required and the proportion accepted will vary.
How Much Can I Borrow Calculator
Estimate Your Borrowing Limit
Knowing how much you may be able to borrow can help you set up a realistic property budget before starting your search. Our How Much Can I Borrow Calculator uses the income information you enter to provide an initial borrowing estimate. It can be used by an individual applicant or by two people applying together. The result is only a guide. Mortgage lenders complete their own affordability assessments and consider your income, expenditure, existing commitments, credit profile, deposit and personal circumstances before deciding how much they may lend.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Mortgage borrowing estimate based on your salary
This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Pure Capital broker to see what options are available.
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This is an estimate only. Lenders also consider credit history, committed spending, dependants, deposit size, mortgage term, and property type.
The actual amount you can borrow may be higher or lower after a full affordability assessment with a lender.
Please note: Results generated by this calculator are estimates only. They do not constitute mortgage advice, a recommendation, an Agreement in Principle or a mortgage offer.
How It Works
How the Calculator Works
The calculator uses the income and financial information you enter to provide an indicative borrowing range.
Lenders sometimes use income multiples as part of their assessment, but this is only one element of a mortgage decision. The income multiple available can vary according to the lender, income level, loan-to-value ratio, mortgage term and overall application.
Lenders will normally carry out a more detailed affordability assessment before confirming how much they may offer.
Annual income
An indicative lower borrowing estimate
An indicative upper borrowing estimate
A reminder that lender affordability criteria apply
The calculator cannot confirm that a lender will approve the estimated amount.
Why Use It
Why Use This Calculator?
A mortgage borrowing calculator can help you form an initial view of your possible property budget.
Estimate a potential mortgage amount
Calculate borrowing using one or two incomes
Include eligible additional income
Consider how existing financial commitments may affect borrowing
Combine the estimate with your deposit to form an indicative purchase budget
Prepare for an initial conversation with a mortgage adviser
Worked Example
Worked Example
The following example is for illustration only.
Applicant One's annual income£40,000
Applicant Two's annual income£25,000
Combined annual income£65,000
Deposit available£35,000
Based on the calculator's assumptions, the applicants may receive an indicative borrowing range. Their deposit could then be added to the estimated mortgage amount to form an initial property budget.
However, the amount actually available may be higher or lower after the lender considers their regular expenditure, credit commitments, mortgage term, dependants, credit history and other circumstances.
The result should not be used as confirmation that the applicants can borrow a particular amount.
Lender Assessment
What Do Lenders Consider?
Lenders review more than income multiples when deciding how much they may lend.
Regular Expenditure
Household bills, travel, childcare, maintenance payments and other regular expenses may form part of the affordability assessment.
Existing Credit Commitments
Personal loans, credit cards, car finance and other borrowing can reduce the amount available for mortgage repayments.
Deposit and Loan-to-Value
Your deposit affects the amount you need to borrow and the resulting loan-to-value ratio. A larger deposit may influence the mortgage products available.
Credit History
Lenders review your credit profile to understand how you have managed borrowing. Previous credit issues may affect the available options.
Mortgage Term
A longer term may reduce the monthly repayment used in the affordability assessment, but it normally increases the total interest paid.
Dependants
Children or other financial dependants may affect disposable income and the lender's affordability calculation.
Income
What Income Can Be Included?
Depending on the lender and your circumstances, acceptable income may include:
- Employment income
- Self-employed income
- Company director's income
- Regular overtime
- Bonuses and commissions
- Pension income
- Certain benefits or allowances
- Rental income
- Income from additional employment
Additional or variable income may need an established history. A lender may use only part of it when assessing affordability.
If you are self-employed or a company director, the calculation may be based on salary, dividends, profits or another measure accepted by the lender.
Deposit
How Your Deposit Affects Your Property Budget
Your potential property budget can be estimated by adding your available deposit to the possible mortgage amount.
- Estimated mortgage: £250,000
- Available deposit: £30,000
- Indicative property budget: £280,000
This does not account for buying costs, so you may need to keep some of your available funds aside.
Buying Costs
Costs to Keep in Mind
Using all available savings as a deposit without allowing for these expenses could leave a shortfall later in the purchase.
- Stamp Duty Land Tax or the relevant property transaction tax
- Solicitor and conveyancing fees
- Valuation and survey costs
- Mortgage product fees
- Broker fees, where applicable
- Moving costs
- Initial repairs or improvements
Estimate Limits
Why Your Actual Borrowing May Differ
Your result may differ from a lender's decision because the calculator cannot fully assess every part of your application.
Your detailed income and expenditure
Whether all income will be accepted
Your credit profile
The requested mortgage term
Your deposit and loan-to-value ratio
The property being purchased
The mortgage product selected
The lender's affordability calculations
Possible changes in interest rates
Your circumstances after the mortgage completes
Different lenders may offer different amounts to applicants with similar incomes because their assessment methods and lending criteria vary.
Agreement in Principle
This Is Not an Agreement in Principle
A calculator result is not the same as an Agreement in Principle.
An Agreement in Principle involves providing more detailed information to a lender or mortgage provider. Depending on the lender, it may also involve a soft or hard credit search.
Even an Agreement in Principle is not a guaranteed mortgage offer. The full application remains subject to affordability checks, supporting documents, property valuation and underwriting.
FAQ's
Frequently Asked Questions
Yes. You can use the calculator without charge or obligation.
Ready to Understand Your Options?
Speak to an adviserTalk to Pure Capital about your mortgage options
A How Much Can I Borrow Calculator can provide a useful starting point, but it cannot reflect every lender's affordability assessment. Pure Capital can review your income, deposit, financial commitments and circumstances to help you understand the mortgage options that may be available.
Your home may be repossessed if you do not keep up repayments on your mortgage.