How Much Can I Afford? UK 2026
UK mortgage affordability explained simply. Income multiples, stress tests, deposit requirements — and exactly how lenders decide how much to offer you.
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Affordability Calculator →The Basic Rule: Income Multiples
UK mortgage lenders typically offer between 4x and 4.5x your gross annual income. For a joint application, they use your combined income. Some lenders will stretch to 5x or 5.5x in specific circumstances.
| Income | 4x (Conservative) | 4.5x (Standard) | 5x (Maximum) |
|---|---|---|---|
| £30,000 | £120,000 | £135,000 | £150,000 |
| £45,000 | £180,000 | £202,500 | £225,000 |
| £60,000 | £240,000 | £270,000 | £300,000 |
| £80,000 | £320,000 | £360,000 | £400,000 |
| £50k + £30k (joint) | £320,000 | £360,000 | £400,000 |
The Stress Test: The Real Limiting Factor
Income multiples are just a starting point. Lenders must also check you could afford your mortgage if interest rates rose by approximately 3% — this is the FCA's required stress test from the Mortgage Market Review.
In practice: if you're borrowing at 5%, the lender checks affordability at approximately 8%. This test is often more restrictive than the income multiple, particularly at higher loan amounts.
- High monthly outgoings (loans, credit cards, car finance)
- Student loan repayments
- Credit score below lender threshold
- Self-employed with variable income
- Probationary period or recent job change
- High LTV (large loan relative to property value)
The Deposit: How Much Do You Need?
| Deposit | LTV | Typical Rate Tier | Notes |
|---|---|---|---|
| 5% | 95% | Highest rates | Limited lenders, Mortgage Guarantee Scheme |
| 10% | 90% | High rates | Much broader lender choice |
| 15% | 85% | Good rates | Rates improve noticeably |
| 25% | 75% | Best standard rates | Full lender market available |
| 40%+ | 60% | Very best rates | Lowest available rates |
What Lenders Look At Beyond Income
- Credit score: Most lenders require a minimum score — check yours via Experian, Equifax or TransUnion before applying
- Employment type: PAYE is simplest; self-employed typically need 2–3 years' accounts; contractors assessed differently
- Existing debt: Car finance, personal loans, credit card balances all reduce maximum borrowing
- Childcare costs: Lenders increasingly factor in nursery/school fees
- Pension contributions: Some lenders deduct these from affordability calculations
- Bank statements: Lenders review 3 months' statements — gambling transactions and consistent overdrafts cause issues
Current UK Mortgage Rates (May 2026)
| Product | Rate Range | Best For |
|---|---|---|
| 2-year fixed | 4.50–5.00% | Expecting rates to fall, remortgaging soon |
| 5-year fixed | 4.25–4.75% | Certainty, most popular choice |
| 10-year fixed | 4.50–5.25% | Maximum long-term certainty |
| Tracker (Base+) | 4.75–5.50% | Expecting rate cuts, flexible |
FAQs
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Affordability Calculator → Repayment Calculator →⚠️ Figures are illustrative. Actual borrowing capacity depends on your lender's criteria, credit score and individual circumstances. Always consult a qualified mortgage broker. Last updated May 2026.