Estimate the maximum loan you could access, based on take-home income, existing payments and a debt-to-income affordability limit.
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Enter gross annual income, existing monthly commitments, the rate and term, and the income multiple. The result is indicative — lenders assess your full budget.
UK lenders use an income multiple (typically 4.0–4.5× income, sometimes up to ~5.5–6×) plus an affordability check stress-tested against higher rates (MCOB 11.6). 4.5× is a portfolio flow guideline, not a hard per-borrower cap.
How much you can borrow ≈ 202,500 £ (Max monthly payment 1,219 £)Indicative loan figures. The estimate uses the annuity formula (fixed rate). The amount a lender will actually offer depends on their affordability rules, the Bank of England base rate, your credit score and existing commitments — the figures here are estimates. Instant in-browser calculation, no account. Last updated: 11 July 2026 · Bank of England base rate.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
The maximum monthly payment is the share of income allowed by your affordability limit, minus existing payments; from it the maximum loan follows:
On take-home income of £3,500 a month, with no other payments, at a 40% limit: the max payment is £1,400; over 25 years at 5% that supports a loan of about £239,000.
It depends on your income, existing payments and how much of your income can safely go to debt. At a 40% affordability limit, total monthly payments cannot exceed 40% of take-home income; that maximum payment gives the maximum loan.
It is the share of your monthly income taken up by debt payments. It measures how stretched your budget is, and lenders use it alongside an income multiple to decide how much they can responsibly lend.
For a mortgage, lenders typically cap borrowing at around 4.5 times annual income, then run an affordability assessment on your outgoings and stress-test the payment against a higher rate. This tool models the outgoings side as a debt-to-income limit.
The maximum monthly payment is worked out (limit × income − existing payments), then the annuity formula is reversed with the interest rate and term to find the loan amount that payment can support.
Usually stable, provable income: your salary or self-employed profits, and sometimes a share of bonus, overtime or rental income. Lenders verify it with payslips, bank statements or SA302 tax calculations.
Yes. Current commitments (other loans, credit cards, car finance) are subtracted from your capacity, reducing the payment available for the new loan and therefore the amount you can borrow.
Through higher, provable income, clearing or reducing existing debt, improving your credit score, a longer term (which lowers the payment), or adding a joint applicant with income, all within the affordability limit.
Yes. There is no single fixed cap: each lender sets its own affordability rules and income multiples, and the Bank of England expects payments to be stress-tested against higher rates. Treat 40% as a working guide, not a guarantee.