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.
That home is no longer listed, so these figures start from a typical home instead.
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 | £731 to £799 |
| £40,000 | £180,000 | £200,000 | £974 to £1,065 |
| £50,000 | £225,000 | £250,000 | £1,217 to £1,332 |
| £60,000 | £270,000 | £300,000 | £1,461 to £1,598 |
| £75,000 | £337,500 | £375,000 | £1,826 to £1,998 |
| £100,000 | £450,000 | £500,000 | £2,435 to £2,663 |
For £399,995, the middle asking price of the 19,040 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 £1,339 to £1,465 a month at 5.07% to 5.88%. 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 19,040 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.