What's the Maximum I Can Borrow for a Mortgage Based on My Income?

1. Income Multiples (The Traditional Approach)

Most UK lenders offer mortgages between 4 to 4.5 times your gross annual income. In some cases, particularly with high earners or professional mortgage products, this could stretch to 5 or even 6 times your income.

Typical Income Multiples:

• 4x income: Standard borrowing limit for most buyers.
• 4.5x income: Offered to borrowers with excellent credit and low debts.
• 5-6x income: Available via specialist lenders or schemes for professionals like doctors or lawyers.

2. Affordability Assessments (The Modern Approach)

Lenders also use detailed affordability checks that look at your:

• Monthly outgoings (e.g. rent, childcare, loans, subscriptions)
• Existing debt repayments
• Number of financial dependants
• Credit commitments and history
• Utilities and lifestyle expenses

These checks ensure you can comfortably afford your mortgage payments, even if interest rates rise.

Examples of Maximum Mortgage Borrowing by Income

Below are some rough estimates based on standard income multiples. These figures assume no major debts and a good credit profile.

Single Applicant (Standard 4.5x Income)

• £25,000 salary: Borrow up to £112,500
• £35,000 salary: Borrow up to £157,500
• £50,000 salary: Borrow up to £225,000
• £75,000 salary: Borrow up to £337,500

Joint Applicants (Combined Incomes)

• £30,000 + £30,000: Borrow up to £270,000
• £40,000 + £20,000: Borrow up to £270,000
• £50,000 + £30,000: Borrow up to £360,000

Note: These figures are illustrative. Depending on affordability, deposit size, and lender policy, actual borrowing may be higher or lower.

Does the Size of Your Deposit Affect How Much You Can Borrow?

Yes. While your income determines the upper limit of what you can borrow, your deposit influences the type of mortgage product you can access and the interest rate you'll be offered.

Key Deposit-to-Value Ratios (LTV):

• 95% LTV: Minimum 5% deposit - limited deals and stricter criteria
• 90% LTV: 10% deposit - more options and competitive rates
• 75% LTV: 25% deposit - access to the best rates on the market

How Does Credit Score Impact Your Borrowing?

A good credit score gives lenders more confidence in your ability to repay, and could allow you to borrow more at better rates. A poor credit history may result in:

• Lower borrowing limits
• Higher interest rates
• Rejection from mainstream lenders
• Need for a larger deposit

Before applying, it's a good idea to check your credit file with all three main agencies: Experian, Equifax, and TransUnion.

Can You Borrow More as a First-Time Buyer?

Yes, especially with government-backed schemes designed to help first-time buyers get on the property ladder.

Popular UK Schemes:

• 95% Mortgage Guarantee Scheme: Helps buyers with small deposits access high LTV mortgages.
• Shared Ownership: Buy a percentage of a home and pay rent on the rest - lowers the required mortgage.
• First Homes Scheme: New-builds offered at a 30% discount to local first-time buyers and key workers.

How to Increase Your Borrowing Potential

1. Reduce Existing Debt

Paying off loans, credit cards, or overdrafts can significantly improve your affordability score.

2. Improve Your Credit Rating

Register on the electoral roll, keep credit utilisation low, and avoid missed payments for at least 6–12 months before applying.

3. Apply with a Joint Applicant

Combining incomes with a partner or family member increases the maximum loan you can access, though both credit histories will be checked.

4. Consider a Longer Term

Extending your mortgage term from 25 to 30 or 35 years can reduce monthly repayments, allowing you to borrow more - but you'll pay more interest overall.

5. Use a Specialist Broker

A mortgage broker can find lenders that offer enhanced income multiples or accept variable income sources (e.g. bonuses, overtime, or self-employment).

Self-Employed Borrowers: What's Different?

If you're self-employed, lenders usually assess your income using an average of your last two or three years' earnings, backed up by:

• SA302 tax calculations
• Full accounts (prepared by a certified accountant)
• Business bank statements

Some lenders may also consider retained profits or the director's salary plus dividends.

Balance Affordability and Realistic Goals

Just because a lender is willing to offer a certain amount doesn't mean borrowing the maximum is wise. Consider your lifestyle, job security, and future plans. Always leave room in your budget for unexpected costs like repairs, rate rises, or life changes.

To find the best deal, speak to a whole-of-market mortgage broker such as Farrell Heyworth’s Mortgage Service, in partnership with Mortgage Advice Bureau, compare offers regularly, and ensure you're financially prepared for homeownership.

If you're looking for trusted advice and local property expertise, Farrell Heyworth is a well-established estate agency covering Lancashire, Cumbria, and the North West. With decades of experience in the housing market, we offer a full range of services including mortgage advice, property sales, lettings, and valuations, making us a great first stop whether you're buying your first home or expanding your property portfolio.

Useful Tools

• MoneyHelper Mortgage Affordability Calculator
• MSE Mortgage Borrowing Guide