How Much Can I Borrow?

Understanding how much you can borrow is the first step in your property journey. Our Mortgage Affordability Calculator provides an estimate of your borrowing potential based on your income and employment type.
While most lenders offer standard borrowing multiples of 4.75x to 5x your income, exceptional circumstances may allow for higher multiples, such as 6x income, or flexible criteria, such as accepting 1-year accounts or the latest year’s salary and profit for self-employed applicants. These exceptions depend on your *credit profile, personal circumstances, and other factors.

Mortgage Affordability Calculator

Use the calculator below to enter your details and find out how much you could borrow, including standard and flexible borrowing options.

Fill in the details below to estimate your borrowing range.

Standard Borrowing Multiples

4.75x to 5x Income Range

The majority of lenders calculate borrowing limits using standard income multipliers:

Lower Range Multiplier: 4.75x annual income.
Upper Range Multiplier: 5x annual income.

For example:

Annual Income: £50,000
Borrowing Range: £237,500 – £250,000

Exceptional Borrowing Options

For some applicants, lenders may offer exceptions to the standard rules, depending on their circumstances.

Borrowing Up to 6x Income

Certain lenders may allow borrowing up to 6x your income for applicants with:

A strong credit profile.
High disposable income.
A stable employment history or business track record.

Example Calculation:

Annual Income: £50,000
Borrowing Potential: £300,000
Accepting 1-Year Accounts for Self-Employed Applicants

While most lenders require 2-3 years of accounts for self-employed borrowers, exceptions may be made for those with:

A profitable first year in business.
A strong personal credit profile.
A robust business plan.
Using the Latest Year’s Salary and Profit

Self-employed applicants can sometimes use their latest year’s salary and profit after tax, instead of an average of the last 2-3 years. This is especially helpful if the latest year’s income is significantly higher than previous years.

Flexible Criteria for Contractors and Locums
Contractors: Some lenders use annualised day rates rather than relying on traditional salary.

Locums:
Recent earnings from the past 3 months may be annualised to determine borrowing capacity.

Factors That Influence Borrowing Exceptions

Credit Profile

A high credit score and a clean credit history are key factors in qualifying for borrowing exceptions.

Personal Profile

Lenders assess your financial stability, including your:

Debt-to-income ratio.

Savings or investments.

Employment history.

Property Type

The type of property you’re purchasing (e.g., residential, buy-to-let, HMO) may impact borrowing multiples and exceptions.

Lender-Specific Criteria

Each lender has unique criteria for granting exceptions. Working with a specialist broker can help identify lenders most likely to approve your application.

Example Scenarios

1: 6x Borrowing for a High Earner
Details:

Annual Income: £80,000
Exceptional Borrowing Multiplier: 6x

Result:

Borrowing Potential: £480,000

2: Self-Employed with 1-Year Accounts
Details:

Year 1 Net Profit: £60,000

Result:

Borrowing Range: £285,000 - £300,000

3: Contractor with Annualised Day Rate
Details:

Day Rate: £350
Annualised Income: £350 × 5 × 48 = £84,000

Result:

Borrowing Range: £399,000 - £420,000

Frequently Asked Questions

Q 1. Can I qualify for borrowing exceptions?

Ans: Yes, but eligibility depends on factors like your credit history, income stability, and lender-specific criteria. Consult a mortgage broker for tailored advice.

Q 2. Are exceptions only available for high earners?

Ans: No, exceptions are available for a range of applicants, including self-employed individuals and contractors, provided they meet the lender’s criteria.

Q 3. Do higher borrowing multiples come with higher risks?

Ans: Yes, borrowing more can increase your financial commitments. Ensure you’re comfortable with the repayment terms before proceeding.

Q 4. How can I improve my chances of qualifying for exceptions?

Ans: Maintain a strong credit score, reduce existing debts, and ensure your financial documents are accurate and up-to-date.

Q 5. Should I work with a broker to access these options?

Ans: Yes, brokers can identify lenders that offer exceptional borrowing options and guide you through the application process.

How Much Can I Borrow?

Mortgage Affordability Calculator