Loan repayments, credit cards, car finance, etc.
Lenders typically add 3% above your rate
Max Property Price
£246,185
Max Mortgage
£206,185
Monthly Payment
£1,146.04
Income Multiple
3.8x
The 4.5x Income Rule
Most UK lenders cap your mortgage at 4.5 times your annual income. Based on your income of £55,000, the standard maximum mortgage would be £247,500. Your monthly commitments of £400.00 reduce your borrowing power.
Your actual income multiple: 3.75x
Stress Test: Pass
At a stress test rate of 7.5%, your monthly payment would be £1,523.69. Your total outgoings stay within the lender threshold. You are likely to pass affordability checks.
Everything you need to know about how much you can borrow
What is the 4.5x income rule?
Most UK mortgage lenders cap borrowing at 4.5 times your annual income. For example, if you earn £50,000 a year, the maximum mortgage is usually £225,000. Some lenders may offer up to 5 or 5.5 times for higher earners or certain professionals, but 4.5x is the standard limit used by most high-street banks.
What is the stress test?
Lenders must check you can still afford your mortgage if interest rates rise. They typically add 3 percentage points to your mortgage rate and check that your total outgoings (mortgage plus commitments) stay below around 50% of your gross monthly income. If you fail this test, they may offer you less.
How does deposit size affect borrowing?
A larger deposit does not increase the amount a lender will let you borrow (that is based on your income), but it does increase the total property price you can afford. A bigger deposit also means a lower loan-to-value (LTV) ratio, which usually gives you access to better interest rates.
Important: This calculator provides estimates for illustration purposes only. Actual mortgage offers depend on your credit history, lender criteria, and property valuation. For personalised mortgage advice, consult a qualified mortgage adviser.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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