Most borrowing stops at 4.5 times income: on £55,000 that is about £247,500, a home of up to £275,000 with a 10% deposit. Your own income, deposit and commitments, against a real new home’s price, with the monthly cost at the Bank of England’s latest average rates.
One applicant with no other loans, at 4.5 times income, the price that borrowing reaches with a 10% deposit, and the monthly cost over 30 years at the Bank of England’s latest average quoted rates. A joint mortgage counts both incomes.
| Income | You could borrow | Price with a 10% deposit | Monthly cost |
|---|---|---|---|
| £30,000 | £135,000 | £150,000 | £712 to £784 |
| £40,000 | £180,000 | £200,000 | £949 to £1,045 |
| £50,000 | £225,000 | £250,000 | £1,186 to £1,306 |
| £60,000 | £270,000 | £300,000 | £1,423 to £1,567 |
| £75,000 | £337,500 | £375,000 | £1,779 to £1,959 |
| £100,000 | £450,000 | £500,000 | £2,372 to £2,612 |
For £399,995, the middle asking price of the 19,153 new homes for sale in England on NewHomeSearch: the deposit, what is left to borrow and the household income that loan needs at 4.5 times income.
| Deposit | Deposit in pounds | To borrow | Income needed |
|---|---|---|---|
| 5% | £20,000 | £379,995 | £84,500 |
| 10% | £40,000 | £359,995 | £80,000 |
| 15% | £59,999 | £339,996 | £75,600 |
| 25% | £99,999 | £299,996 | £66,700 |
Usually up to 4.5 times your income: on £55,000 that is about £247,500, and with a 10% deposit a home of up to £275,000, costing £1,305 to £1,436 a month at 4.84% to 5.7%. Loans, cards and car finance lower it; the calculator above works out your own household against a real new home.
4.5 times for most buyers. Lenders can make only 15% of their new mortgages at 4.5 times income or more, so a higher multiple is the exception, offered to some buyers who meet a lender’s own conditions.
For £399,995, the middle asking price of the 19,153 new homes for sale in England on NewHomeSearch, a 10% deposit of £40,000 leaves £359,995 to borrow, which at 4.5 times income needs a household income of about £80,000.
Not the amount: your income sets that. A bigger deposit raises the price you can reach and lowers the loan to value, which usually brings a lower rate and so a lower monthly payment.
They start from your income, take off what your regular commitments cost, and test the payment at a higher rate: at least 1% more over the first five years, unless the rate is fixed for five years or more. Then they apply their own limits on income multiple and loan to value.
Yes: a joint mortgage counts both incomes, so two incomes of £35,000 and £25,000 are treated as £60,000, about £270,000 at 4.5 times. Tick "Joint" in the calculator.
No. This is an illustration from the published limits. A mortgage in principle is a lender’s own statement of what it may lend you, after it checks your credit file; it is still not an offer.
What you can borrow plus your deposit, less the costs of buying: stamp duty, legal fees and a survey. The guide sets out what a home costs on each income.