Calculate how much you can borrow in the UK with our simple mortgage calculator when moving house, or buying your first home.
Calculate the total amount required for the purchase including fees and deposit.
You can borrow up to:
With your deposit, you can buy a property up to:
If you're ready to get a mortgage, the next step will take 3 minutes. Then we will find our best mortgage deals for you.
How much mortgage can I borrow?
You can usually borrow around up to four-and-a-half times your total annual income. However, some lenders offer up larger amounts, up to 6 times your annual salary, but they will be very strict about who they lend this amount to. For instance, if you have an annual household income above £80,000 or have such a profession as doctors, dentists, you might be offered a higher multiple. Alternatively, taking out a joint mortgage can increase the amount you can borrow.
You can calculate how much you’re likely to be able to borrow with our simple mortgage calculator but please remember this number will differ from lender to lender.
How much mortgage can I afford?
Lenders have different rules for calculating your affordability. A mortgage provider will make an "affordability assessment" when deciding how much to lend you. This affordability assessment compares your salary with how much you spend in a month. Also, this might include;
using a government home ownership scheme
other financial commitments and bills
length of mortgage
You can calculate how much you can afford with our simple mortgage calculator.
Should I borrow the maximum amount?
You should find out the maximum amount you can borrow before you start house hunting to be clear on how much you can afford. Lenders decide how much they’ll lend you based on, your salary, other incomes, investments, and how much you can afford to pay.
You should decide how much is right for you, even if a lender offers a maximum or higher amount that you need. You should consider things like a rise in interest rates or if losing your job and think about what’s best for you.
It is worth bearing in mind that buying a property quite often is just the beginning of your venture. Completion of your purchase tends to be the start of further spending on adapting the property to your personal needs and taste. Should that be your first purchase you may also take into consideration that from now on it is your responsibility to maintain the property. This means any boiler, roof or plumbing failures will lead to you having to pay for having it fixed. Therefore it is reasonable to be rather conservative with your finances and leave some potential room in between your mortgage, living expenses and other spendings to be able to meet the sometimes unexpectedly surfacing, yet requiring immediate action, spendings.
You can always contact us with your questions about your mortgage application.
What is the loan-to-value (LTV)?
When applying for a mortgage, the variety of deals available to you is highly dependent upon the LTV - loan to value ratio. LTV represents the correlation between the value of the property and the amount of mortgage applied to purchase the property. For example, if you want to buy a 300,000 property, have 30,000 to make a down payment and aim to borrow 270,000 then your LTV equals 270,000/300,000=0.9 (90%).
Generally speaking, the lower the LTV the better rate you can get. This can translate into huge savings for you. Mortgage lenders have different prices for 60%, 70%, 75%, 80%, 85%, 90% and 95% LTV bands. From the lender’s point of view the higher the deposit (lower LTV) the less risk in case you could not repay your mortgage. As a result, lenders are happy to lower their return by offering lower rates and fees.
The same rules apply when you remortgage. If you own 10% of the value of your home, you'll need a remortgage deal for the remaining 90%, so your LTV is 90%.
How much can I borrow with no deposit?
In theory, it is possible to get a mortgage with no deposit. However, most lenders will ask for a 5% deposit at least. Barclays, Lloyds and Tipton & Coseley Building Society offer 100% mortgages.
However, you might still struggle to get a mortgage with a 5% and even 10% deposit. As mentioned above, you will have better rates and chances of acceptance when you have higher deposit/equity. To put it simply,
5 - 15% is the minimum deposit required
25% gets you a good rate
40% gets you the best rates