Short answer: most UK lenders will lend somewhere around 4 to 4.5 times your annual income, and some go to 5 or 5.5 times for higher earners or certain professions. But the multiple is only the starting point. What you can actually borrow depends on your monthly outgoings, your credit file, your deposit and the lender’s own “stress test” of whether you could still pay if rates rose.
I’m Charles Calvert, a mortgage broker based in Fareham. “How much can I borrow?” is the first question nearly everyone asks me, so here is how lenders really work it out, in plain English.
How lenders work out what you can borrow
Lenders look at two things side by side:
- Income multiple (loan to income). A quick cap based on what you earn. Two people on £35,000 and £30,000 have a joint income of £65,000. At 4.5 times that is £292,500, but a lender may offer more or less once it looks at the detail.
- Affordability. The lender builds a monthly budget from your bank statements and credit file: credit cards, loans, car finance, childcare, travel, dependants. It then checks you could still afford the payments at a higher “stressed” rate. If the budget does not work, the income multiple does not matter.
The lower of the two answers is what you get offered. That’s why two friends on the same salary can be offered very different amounts.
What counts as income?
- Basic salary: counted in full by every lender.
- Overtime, bonus and commission: many lenders count some or all of it if it’s regular, usually with payslips or P60s to prove it.
- Self-employed income: usually based on your last one to two years’ figures. See my self-employed mortgages page.
- Benefits, maintenance and second jobs: some lenders accept them, some don’t. This is where using a broker makes a real difference.
What reduces how much you can borrow?
- Monthly credit commitments, especially car finance and personal loans
- High credit card balances, even if you pay them off each month
- Childcare costs and number of dependants
- Missed payments, defaults or CCJs on your credit file (see bad credit mortgages)
- A smaller deposit, which can mean fewer lenders and higher rates
A worked example (illustration only)
A couple in Fareham earn £62,000 between them, have a £10,000 deposit and a £250 a month car payment.
- At 4.5 times income, the cap would be £279,000.
- The car payment reduces the lender’s affordability figure, so one lender might offer around £255,000 and another closer to the full cap.
- Clearing or reducing the car finance before applying could change the answer.
These numbers are illustrations, not an offer. Every lender’s calculator is different, which is exactly why I run your figures across the lenders I use before you start viewing.
How to borrow more (sensibly)
- Check your credit file first. Errors and old addresses can drag you down. My credit report guide shows how.
- Pay down small debts before you apply, if you can.
- Choose a longer term. A longer term lowers the monthly payment, which can raise what a lender will offer, but you pay more interest overall. See how long your mortgage term should be.
- Apply jointly. Two incomes usually go further. See joint mortgages.
- Use the right lender. Some lenders offer higher income multiples for certain professions or higher earners.
- Get an Agreement in Principle before you start viewing. See what an Agreement in Principle is.
Just because a lender will lend it doesn’t mean you should borrow it. I’ll always show you what the monthly payment looks like and whether it leaves you room to live.
Try the numbers yourself
My mortgage calculators give you a quick idea of borrowing and monthly payments. For the real answer, based on your actual income and outgoings, book a no-fee call and I’ll check it across 80+ lenders.
What it costs to use me
There’s no fee for my advice, appointments, Agreements in Principle or mortgage applications. A fee is only payable once you receive your full mortgage offer: £495 for purchases, £299 for remortgages and £895 for specialist lending. There’s no fee for product transfers or protection.
Buying locally? I help buyers across Fareham, Portsmouth, Southampton and the rest of Hampshire. First time? Start with my first-time buyer mortgages page.
Frequently asked questions
How much can I borrow on a £30,000 salary?
Most lenders would lend roughly £120,000 to £135,000 on a single £30,000 salary (4 to 4.5 times income), before looking at your outgoings. Some lenders go higher. Debts, childcare and a small deposit can bring the figure down.
How much can I borrow with a joint income of £60,000?
Typically around £240,000 to £270,000 (4 to 4.5 times), and some lenders will consider more. The lender will still check both of your monthly commitments, so the actual figure can be higher or lower.
Do all lenders use the same income multiple?
No. Each lender has its own calculator and rules. Some offer 5 times income or more for higher earners or certain professions, while others are stricter if you have debts or a small deposit. Comparing lenders is one of the main reasons to use a broker.
Does checking how much I can borrow affect my credit score?
An Agreement in Principle with a soft search does not affect your credit score. Some lenders use a hard search at that stage, so I’ll tell you which type a lender uses before we go ahead.
Can I borrow more if I’m self-employed?
Self-employed income is treated the same way once it’s proven. Most lenders want one to two years of accounts or tax calculations. Contractors can often be assessed on their day rate instead.
Your home may be repossessed if you do not keep up repayments on your mortgage.