The Affordability Calculator
A lender applies two ceilings and takes the lower one: a multiple of your income, and what the payment would be if rates rose. This shows both, and which one is holding you back.
Your income and your deposit
2 · What the lender assumes
The defaults are common across lenders. Change them to match the one you are talking to.
Everything is worked out in your browser. No figure is sent anywhere.
How to estimate what you could borrow
- Enter your income, any second income and what you already pay out each month.
- Enter your deposit, the rate you have been quoted and the term.
- Read the most you could borrow, and the property price that reaches with your deposit.
Frequently asked questions
Why is the answer lower than four and a half times my salary?
Because the income multiple is only one of the two ceilings. The other is the monthly payment tested at a higher rate, and on a long term or a high rate that is often the one that bites. The result tells you which one it was.
What income multiple should I use?
Between four and four and a half is common, and some lenders go higher for higher incomes or certain professions. It is a starting assumption, not a rule, which is why you can change it.
Does the deposit change what I can borrow?
In this calculation the deposit adds to the property price rather than to the loan. In practice a bigger deposit also gets you a better rate, which raises the payment ceiling, so it helps twice.
Is this a mortgage offer?
No. Lenders differ, and every one of them looks at your credit history, your outgoings and the property itself. This is the arithmetic they start from.
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