Borrowing
01 · Two checks, not one
The first check is a ceiling based on your income. The second is an affordability assessment based on what you spend. The amount a lender offers is whichever of the two is lower.
That is why two people on the same salary can be offered very different amounts, and why two lenders can give the same person different answers.
02 · Income multiples
Most lenders cap borrowing at around four to four and a half times your annual income. Some go to five or five and a half times for higher earners or certain professions, and a few schemes for first-time buyers go higher still, subject to strict criteria.
Lending at four and a half times income or more is limited across the market by the Bank of England. Since 2025, individual lenders have had more room to offer it, as long as the market-wide limit holds, so availability depends on the lender as well as on you.
| Income | 4 × income | 4.5 × income | 5 × income |
|---|---|---|---|
| £30,000 | £120,000 | £135,000 | £150,000 |
| £45,000 | £180,000 | £202,500 | £225,000 |
| £60,000 | £240,000 | £270,000 | £300,000 |
| £75,000 (joint) | £300,000 | £337,500 | £375,000 |
These are ceilings, not offers. The affordability check below often brings the figure down.
03 · Affordability
04 · What reduces it
| Commitment | Effect on borrowing | What you can do |
|---|---|---|
| Credit card balances | Lenders treat a share of the balance as a monthly cost, even if you clear it. | Paying balances down before applying can make a real difference. |
| Car finance and loans | The monthly payment comes straight out of what you can afford. | Avoid new agreements before applying. Some lenders ignore loans ending soon. |
| Childcare | Counted as a regular outgoing. | Tell us if costs are about to fall, for example when a child starts school. |
| Buy now, pay later | Increasingly counted, and visible in bank statements. | Clear what you can and avoid new plans in the run-up. |
05 · Deposit and loan to value
Loan to value is the mortgage as a share of the property price. With a £30,000 deposit on a £300,000 home, the loan is £270,000, or 90% loan to value.
Rates generally improve at each lower band — commonly 95%, 90%, 85%, 75% and 60% — so a slightly larger deposit can lower your rate as well as your loan.
A deposit of 5% is possible. The government’s Mortgage Guarantee Scheme, permanent since July 2025, supports 91–95% mortgages for first-time buyers and home movers through participating lenders.
06 · Mortgage term
A longer term lowers the monthly payment and can help the affordability check, but you pay more interest overall. Many lenders offer terms up to 35 or 40 years, but most want the mortgage to end by an age you are likely to retire, unless you can show income in retirement.
07 · Agreement in principle
An agreement in principle is a lender’s initial indication of what it would lend, based on your income, outgoings and a credit check. It usually lasts 30 to 90 days and shows estate agents you can proceed. It is not a guarantee: the full application, valuation and checks still follow.
Some lenders use a soft search for it and others a hard search, which is one more reason to choose the lender carefully first. You can get a quick estimate any time with the calculator on our homepage.
08 · Quick answers
Most lenders cap borrowing at around four to four and a half times income, so roughly £160,000 to £180,000 on £40,000. Your outgoings, credit commitments and deposit decide where within that range, or above it, a lender lands.
Each lender sets its own income multiple, counts bonus and overtime differently, and uses its own affordability model. The same application can produce noticeably different figures.
A bigger deposit does not raise the income multiple, but it lowers your loan to value, which can improve the rate and widen the choice of lenders.
09 · Sources
Correct as at October 2026. Lender criteria, rates and rules change; this is general information, not a personal recommendation.
Tell us your income and commitments and we will work out what the lenders most likely to suit you would offer.
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