!
This is education and guidance, not personal financial advice.

The numbers below are an estimate to help you understand how lenders think. They are not a mortgage offer and not a promise of what you can borrow.

Your actual borrowing capacity is only confirmed at Agreement in Principle (AIP), a soft credit check with a real lender, and then again at full application, after underwriting. The figure here may be higher or lower than what a lender will offer.

For personal mortgage advice tailored to your circumstances, speak to a qualified adviser. DS Financial is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, authorised and regulated by the FCA (Firm Ref: 835094).

Your Income

Lenders start with income, but how they verify it differs by employment type.

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Sole trader / partnership, last 2 years' net profit
Lenders typically take an average of your last 2 years' net profit (the figure on your SA302 / tax calculation). Enter both years below, we'll average them.
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£
Note: A few lenders will take your share of the company's net profit (rather than just drawings), that's a more involved calculation, and worth talking to an adviser about. Most use the 2-year average shown.
Limited company director, last 2 years' salary + dividends
Most lenders take an average of your last 2 years' director's salary plus dividends drawn. Enter the totals for each year below.
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£
Note: Some lenders will look at your share of the company's retained net profit (instead of dividends drawn), which can give a higher figure. That's an advanced route, speak to an adviser if your retained profit is significantly higher than what you draw.
Lenders verify income with payslips (PAYE) or 2 years of accounts / SA302s (self-employed). Contractors often need 12 months of contracts on file.
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Applicant 2, Sole trader / partnership net profit
Average of last 2 years' net profit. Use the figure from the SA302 / tax calculation.
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£
Applicant 2, Limited company director income
Average of last 2 years' director's salary + dividends drawn.
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£

Your Debts & Commitments

This is where most affordability calculators stop short. Lenders look closely at what you're already paying out each month.

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Lenders typically treat 5% of your card balance as a monthly commitment, even if you clear it in full each month.
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Increasingly factored in by lenders. Treated similarly to credit card balances.
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Lenders count the full monthly payment. Many ignore loans with under 6 months remaining.
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Full monthly payment counts. PCP balloon payments at the end of the term don't usually factor in until they're close.
Some lenders ignore student loans (because they're auto-deducted), some count the gross deduction. Plan 2 is the most common.
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Anything else committed: maintenance payments, overdraft interest, subscriptions you can't cancel.

Family

Lenders apply a per-dependant deduction (typically £250 to £450/month) plus actual childcare costs.

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Property & Deposit

Loan-to-value (LTV) affects what multiples lenders will offer. A larger deposit (25%+) and a strong affordability profile can unlock higher multiples, some lenders will go up to 6× with conditions.

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4.5×
4.0× (cautious) 4.5× (typical) 6.0× (specialist lenders)
4.5× is what most high-street lenders will usually offer. Some lenders go up to 6×, and the odd specialist may stretch slightly higher again, but conditions apply (professionals, high earners, large deposits, strong affordability).

Your Borrowing Picture

Updates live as you change the figures above.

Estimated borrowing
Enter your income to see your range
Most high-street lenders would consider lending you somewhere in this range.
💡 The income multiple slider isn't moving the headline because monthly affordability is the binding test. Reduce monthly debts (or boost income) to unlock more.
Estimate only. This is not a mortgage offer. Your real borrowing power is determined at Agreement in Principle and confirmed at full application. Education and guidance only, not regulated financial advice.

How we got there

Every figure broken down. The lower of the two tests below is what lenders use.

Enter your details above to see the breakdown.

The honest caveat, please read

This calculator is for education and guidance only. It is not regulated financial advice and it is not a mortgage offer.

Real lenders also weigh up your credit file, employment history, age versus the mortgage term, and their own specific criteria. Two lenders can look at the same figures and reach different answers, by tens of thousands of pounds.

Your true borrowing capacity is only confirmed at two points:

  • Agreement in Principle (AIP): a soft credit check that produces a lender's indicative offer letter, usually within 24-48 hours.
  • Full mortgage application: after the lender underwrites your full file (income verification, credit search, property valuation, etc.), this is the formal offer.

For personal mortgage advice tailored to your circumstances, you need to speak to a qualified mortgage adviser. Debbie at DS Financial is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, authorised and regulated by the Financial Conduct Authority (FCA Firm Ref: 835094). She does the full assessment for free, no obligation, no pressure.

Stage 1 of 9 · Your Buying Journey

Done with affordability? Here's what comes next.

Now that you've got a sense of what's realistic, the next step is making sure you're mortgage-ready, credit file clean, deposit on track, paperwork in order. We've laid out exactly what to do, in order, free, no sign-up needed.

Next stage → Getting mortgage-ready Or jump to The full journey hub

What this calculator does (and doesn't)

  • Does: apply the income multiple test, the monthly debt-to-income (DTI) test (~45% of net income), student loan deductions, and credit/BNPL balance handling, all roughly how lenders actually treat them.
  • Does: cap the multiple at 4.5× if your LTV is over 90% (lenders rarely stretch higher with a small deposit).
  • Does: assume a 30-year term, which is the modern norm for first-time buyers. A 25-year term reduces the figure; a 35-year term (some lenders allow) lifts it.
  • Doesn't: see your credit file, your employment history, or your bank statements, all of which lenders will look at.
  • Doesn't: account for stress-test rates that some lenders apply (6-7% over 36 years). Real lenders may go higher or lower than the estimate here.
  • If a conversation would help, Debbie at DS Financial is happy to run the actual numbers. Whole-of-market, no obligation.
darrentalks.co.uk, Plain-English mortgage education from Darren Shepherd, 36+ years in the UK mortgage industry. For guidance only, not financial advice. For personalised regulated mortgage advice, talk to Debbie at dsfinancial.co.uk, Appointed Representative of Stonebridge Mortgage Solutions Ltd, FCA Firm Ref: 835094. Your home may be repossessed if you do not keep up repayments on your mortgage.