House Affordability Calculator
Discover how much house you can afford in the UK. Factor in your income, deposit, and monthly expenses to get a clear, realistic home-buying budget.
Calculate Your Buying Power
Enter your financial details below to estimate the maximum property price you can comfortably afford, based on standard UK lender affordability criteria.
Your Financial Details
Provide accurate figures for the most reliable estimate
Your Affordability Estimate
Based on your provided financial details
Key Affordability Factors
Understanding the metrics UK lenders use to evaluate your mortgage application.
| Factor | Description | Ideal Target |
|---|---|---|
| Income Multiplier | How many times your annual income a lender will typically loan you. | 4.0x – 4.5x gross income |
| Loan-to-Value (LTV) | The percentage of the property’s value that is financed by the mortgage. | 75% – 85% (15-25% deposit) |
| Debt-to-Income (DTI) | The percentage of your gross monthly income that goes towards paying debts. | Below 36% |
| Credit Score | A numerical expression of your creditworthiness based on your credit history. | Good to Excellent (700+) |
| Stress Testing | Lenders check if you can afford repayments if interest rates rise (typically +3%). | Must pass at ~7.5% rate |
Mortgage Affordability FAQ
Answers to the most frequently asked questions about buying a house in the UK.
Most UK lenders use an income multiplier, typically offering a mortgage of 4 to 4.5 times your annual gross income. They also assess your monthly outgoings, credit commitments, and the size of your deposit to determine your Loan-to-Value (LTV) ratio and final affordability.
The minimum deposit for a standard residential mortgage in the UK is typically 5% of the property’s purchase price. However, providing a larger deposit (e.g., 15% to 20%) will significantly improve your Loan-to-Value (LTV) ratio, giving you access to better interest rates and lower monthly repayments.
Yes. Lenders will deduct your regular monthly financial commitments (such as car finance, credit card minimum payments, and student loans) from your assessable income. High existing debt reduces your borrowing capacity and overall affordability.
A healthy debt-to-income (DTI) ratio is generally considered to be 36% or lower, with no more than 28% of your gross monthly income going towards housing costs (mortgage, insurance, taxes). UK lenders scrutinise this closely to ensure you can comfortably afford repayments.