By clicking a retailer link you consent to third party cookies that track your onward journey. If you make a purchase, Which? will receive an affiliate commission which supports our mission to be the UK's consumer champion.

How much can you borrow for a mortgage?

Find out how much a bank is likely to lend you and how lenders use affordability testing to make their decisions
Stephen Maunder

How do lenders decide how much mortgage I can borrow?

When you apply for a mortgage, the amount you'll be allowed to borrow will be capped at a multiple of your household income.

Broadly speaking, most lenders will allow you to borrow up to four-and-a-half times your annual earnings. This means if you're buying a home with your partner and you earn £30,000 each (£60,000 in total), you might be able to borrow up to £270,000, subject to meeting the lender's other affordability criteria.

Bank of England guidelines mean lenders can only offer 15% of new mortgages at four-and-a-half times earnings or higher.

Ready to get a mortgage?

Find the right mortgage using the fee-free service provided by L&C Mortgages

Compare mortgages

How can I borrow more?

It is sometimes possible to borrow more if you meet certain criteria. Some banks allow a limited number of applicants to borrow more than five times their household income.

Whether you'll qualify for a bigger loan depends on how much you earn and the loan-to-value (LTV) that you'll be borrowing at (more on this later on).

Professional mortgages

Some mortgage lenders will offer larger amounts to people in certain professions, those with bigger deposits, or those with higher earnings. 

  • 'Professional' mortgages allow borrowers with specific jobs (such as doctors and dentists) to borrow at a higher multiple. These deals are usually aimed at recently qualified individuals in industries that lenders believe experience high wage growth.
  • If you have a deposit of 25% or more, some lenders may be willing to offer you a higher multiple.
  • If you have high household income, lenders may be willing to let you borrow more. Criteria vary, but borrowers with incomes of more than £100,000 may qualify for the biggest income multiples.

How do affordability assessments work?

When deciding how much to lend you, a mortgage provider will do an affordability assessment. Essentially, this means looking at the amount you typically earn in a month compared with how much you spend.

Lenders are also interested in the types of things you spend your money on. Some expenses (e.g. a gym membership) can be quickly cut back, while others such as childcare are less flexible.

Your lender will ask about things such as:

Income

  • Regular income from paid work
  • Any benefits that you receive
  • Income from other sources, such as investments or pension

Outgoings

  • Debt repayments such as student loan or credit card bills
  • Regular bills such as gas and electricity
  • Childcare costs
  • Transport costs
  • Grocery costs
  • Spending on leisure activities

Don't be tempted to bend the truth - the lender will check what you say against recent bank statements and wage slips. See our guide on Applying for a mortgage for more detail on the documents you'll need for an application.

If you're self-employed, it can be tough to convince lenders you're a safe bet due to a lack of regular payslips or contract of employment. But our guide on mortgages for self-employed buyers will help you through the process.

Mortgage borrowing calculator

Use our mortgage borrowing calculator to get a rough idea of how much you might be able to borrow when applying for a home loan.

What does 'LTV' mean?

The deals you're offered when applying for a mortgage will usually be affected by the loan-to-value ratio or 'LTV'. This is the percentage of the property price that you're borrowing compared with how much you're putting in yourself.

If you have a 10% deposit, your LTV will be 90% as your mortgage will need to cover 90% of the property price. With a 15% deposit, your LTV will be 85%, and so on.

Lenders will set a maximum LTV for each deal they offer - for example, a particular interest rate may only be available to those with an LTV of 75% or below.

In general, the lower your LTV (i.e. the more money you're putting in yourself), the lower the mortgage rate, and the cheaper the overall deal.

Need a mortgage?

Find the best mortgage for you, with expert help provided by L&C Mortgages

Get advice now