Mortgage Calculator: How Much Can I Borrow?


A mortgage is a loan taken out to buy property or land. If you’re looking to buy a property, you can apply for a mortgage directly from a bank or building society, or you can contact a mortgage broker to help you find the best deal. Before applying for a mortgage, it’s a good idea to determine how much you can afford to borrow.

When applying for a mortgage, lenders consider a lot of factors.

Lenders will be interested in your income as this will help determine if you can keep pace with mortgage payments.

The amount of deposit you can deposit will also affect how much you can borrow, and your expenses such as bills, credit card refunds, and insurance will be taken into account.

Your personal situation and any potential future situation will also be taken into account.

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“For example, if your annual income was £ 50,000, you could have borrowed three to five times that amount, giving you a mortgage of up to £ 250,000.

“Now, when you apply for a mortgage, the lender caps the loan-to-income ratio at four and a half times your income.

“They also need to assess the level of monthly payments you can afford, after factoring in various personal and living expenses as well as your income. This is called an affordability assessment.

When you apply for a mortgage loan, lenders will require proof that you will be able to repay the amount you borrow, so you may need to provide documents for the appraisal.

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The Money Advice Service website also has a Mortgage Affordability Calculator HERE that you can use to estimate how much you can afford to borrow.

Online loan calculators will only be able to give you an estimate of how much you will be able to borrow.

But the only precise way to know how much you can borrow is to apply for a mortgage.

While you can view mortgages offered directly by banks and building societies, there are also a number of mortgage comparison sites on the internet that you can use.


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