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Property · Indicative

Mortgage Affordability Calculator

UK lenders cap most mortgages at around 4.5× household income, with some going up to 5.5× under newer FCA stress-test rules. This is a fast first-pass.

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Max property price

£242,500

LTV 84%

Breakdown

  • Household income (× 4.5)
    £45,000
  • Max mortgage
    £202,500
  • Deposit
    £40,000
  • Max property
    £242,500

How we calculated your result

Max loan = household income × multiplier. Max purchase price = max loan + deposit. We don’t deduct outgoings here — real lender affordability scoring includes credit-card balances, school fees, childcare and pension contributions.

Official UK rules in simple English

  • FCA limits over-4.5× lending to 15% of any lender’s book.
  • Stress tests typically check repayment at 7–8% rates.
  • First-time buyers may access higher LTI under schemes like Nationwide’s Helping Hand.

Common pitfalls to watch out for

  • ⚠ Bonuses count partially

    Most lenders take 50–100% of guaranteed bonuses, less for irregular ones.

  • ⚠ Self-employed needs 2–3 yrs accounts

    And lenders typically use the average net profit, not turnover.

  • ⚠ Childcare kills affordability

    £1,500/mo of childcare can cut your max loan by £80–100k.

Frequently asked questions

What multiple should I use?
4.5× is the common cap. Use 5.5× only for sole income over £75k or joint over £100k — and expect a stress test.
Does this include Stamp Duty?
No — keep an additional 3–5% in cash for SDLT, legal fees and surveys.

Indicative only. Run a proper Decision in Principle with a broker or lender.

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