Mortgage Maximum Borrowing

Mortgage Maximum Borrowing - Find out how much your current earnings will enable you to borrow.

We have removed the previous maximum borrowing calculator from the site as we were not convinced the supplier's calculation was always fair.

We feel that results from any maximum borrowing calculator are going to be distorted wherever it is supplied from. Not all lenders will use exactly the same calculation, meaning that some might be willing to lend you more than others.

The first thing the lender will look at is how much you earn. For this, your annual salary is used to calculate your maximum mortgage borrowing, although sometimes lenders will also take some outgoings into consideration - such as unsecured loans and credit cards - which could reduce your maximum borrowing.

A lender will normally be prepared to offer a mortgage of 3 to 4 times your annual salary (alternatively 2 to 3 times your joint annual income with joint applications). But each lender will have their own set of income multiples.

For example, for an income of Ł20,000 per year, you might be able to borrow between Ł60,000 and Ł80,000, subject to the maximum loan to value amount.

Some Mortgage Lenders arrange mortgages where you can borrow up to 3.5 times your sole income, or up to 3 times your joint income.

But the equation does change from lender to lender. If you are borrowing towards the top end of your maximum borrowing then speak to an advisor to find out which lenders will be prepared to lend to you. Complete the form below to be contacted by an advisor for free and without obligation.

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