What Could You Borrow
Enter your income below and the calculator will give you a rough borrowing estimate based on a standard income
multiple. Use the figure as a direction. A broker will give you an accurate number based on your actual situation.
On This Pages
- Not sure which route is right for you?
Why the Number Is a Starting Point, Not a Guarantee
Online calculators use a simple income multiplier, usually 4 to 4.5 times your annual salary. Lenders do not. They look at your outgoings, your credit history, your employment type, your deposit, the property itself, and sometimes how many dependants you have. Two people with identical salaries can be offered very different amounts by the same lender based on those factors. The calculator tells you roughly where you are. A broker tells you exactly what you qualify for and with which lenders.
What Lenders Actually Look At
| Factor | Why it matters | How it affects borrowing |
|---|---|---|
| Income type | Employed, self-employed, contractor,and variable income are all assessed differently | Some lenders cap self-employed borrowing at a lower multiple; others specialise in it and lend more |
| Outgoings and commitments | Car finance, credit cards, school fees, and maintenance payments all reduce what a lender will offer | Every £100 of monthly committed spend typically reduces the maximum loan by £10,000 to £15,000 |
| Credit history | Missed payments, defaults, CCJs and IVAs affect lender choice and the rate available | Adverse credit limits options with high street lenders; specialist lenders will still lend but at a higher rate |
| Deposit size | A larger deposit reduces the loan-tovalue ratio and opens up better rate tiers | Moving from 10% to 15% deposit can shift you into a significantly cheaper rate band |
| Property type | Flats above commercial premises, highrise blocks, and non-standard construction are treated differently | Some lenders exclude certain property types entirely; others apply a lower maximum LTV |
| Number of applicants | Joint applications combine income but also combine commitments | A second income increases borrowing capacity; a second applicant with debt commitments may reduce it |
Handy tools and calculators
Run the numbers, then talk to us. Our financial calculators cover mortgage repayments, how much you could borrow, stamp duty, bridging finance and rental yield. Results are estimates only and should not be relied on as financial advice.
Speak to an adviser for personalised advice.
Which of these sounds like your situation?
The calculator gives everyone the same answer for the same income. Here are four situations where the real answer is very different from that number.
You are self-employed and you have been told the calculator figure does not apply to you.
That is partially true. Most lenders use your last two years of accounts or tax returns to assess self-employed income, not your current revenue. If your income has grown recently, the average of two years may undersell what you actually earn. Some lenders will use the most recent year if it is the higher figure. Others use the lower. A broker knows which lenders work which way for your type of self-employment.
You have credit card debt and you are not sure how much it reduces what you can borrow.
Lenders look at your minimum monthly payment, not the balance. A credit card with a £5,000 balance and a minimum payment of £100 a month reduces your maximum borrowing by roughly £10,000 to £15,000 depending on the lender. Clearing the card before applying removes that reduction entirely and changes the calculation in your favour
You and your partner have very different incomes and you are not sure how a joint application works.
Most lenders will apply the income multiple to the combined income of both applicants. If one of you has a good salary and the other has a modest income with significant existing debt, the second income may add less than expected. In some cases, a sole application on the higher income with a later addition of the second applicant after exchange can work better. A broker can model both scenarios before you apply.
You are buying a flat above a commercial unit and the calculator gave you a number no lender will actually lend.
Some lenders exclude flats above commercial premises entirely. Others will lend but cap the loan-to-value at 75% regardless of your deposit. The calculator does not know what you are buying. A broker can confirm which lenders will consider the property before you make an offer, not after.
Every situation is unique.
Speak to an adviser to discuss your circumstances and find out how we can help.
Ready to go beyond the estimate?
A broker can approach lenders on your behalf, confirm exactly what you qualify for, and issue a Decision in Principle before you start viewing properties. That puts you in the same position as a cash buyer when it comes to making an offer.
Frequently Asked
Questions
Clear,honest answers to the questions we hear most from clients and introducers.
You have used three different calculators and got three different figures.
Every calculator uses a different income multiple and some include a basic outgoings field. None of them access your credit file, check your employment type in detail, or know what property you are buying. The variation between calculators reflects the variation between lenders. A Decision in Principle from a lender, arranged through a broker, is the only figure that actually means something when you are making an offer.
You are a first-time buyer and you are not sure whether the figure includes your deposit or is on top of it.
The calculator shows the loan amount, which is separate from your deposit. If the calculator says you can borrow £350,000 and you have a £50,000 deposit, your total purchase budget is £400,000. Your deposit percentage is calculated against the total property value, not just the loan, which determines which rate band you fall into
You have a bonus or commission that makes up a significant part of your income.
Lenders treat variable pay differently. Some will use 100% of your last year’s bonus if it is contractual and evidenced on payslips. Others will average the last two years. Some will only use 50% of variable income regardless. If bonuses or commission make up a large portion of what you earn, the lender you choose matters as much as the rate they offer.
You want to know how much you could borrow before you start saving for a deposit.
That is the right order. Knowing your rough borrowing capacity helps you work out the target property price, which tells you what deposit percentage you need to hit the best rate bands. A broker can run through that calculation with you and help you set a realistic savings target based on where you want to buy
Get in Touch
Our advisers are here to help you find the right business loan for your specific requirements.
