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How much can you actually borrow for a mortgage?

The four and a half times rule gets quoted everywhere. It is where the calculation starts, not where it ends, and the second half is what surprises people.

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The short answer

Most lenders start at four to four and a half times income, then reduce it for your committed outgoings. Car finance, credit cards, childcare and student loan repayments all cut the figure. Two lenders can differ by tens of thousands on identical numbers.

4 to 4.5xTypical income multiple
£20,000Borrowing often freed by clearing £300 a month of car finance
2 yearsHistory lenders usually want for bonus or self-employed income
Every lenderRuns its own affordability model
What is on this page
  1. The income multiple is only the start
  2. What reduces the number
  3. What counts as income
  4. Term changes the monthly figure

The income multiple is only the start

Many lenders begin at around four to four and a half times income. A few stretch further for higher earners, and some professions get special treatment.

Single income Roughly 4x Roughly 4.5x
£28,000 £112,000 £126,000
£40,000 £160,000 £180,000
£55,000 £220,000 £247,500

Illustrative multiples, not an offer. Each lender runs its own affordability model on top of these.

What reduces the number

  • Car finance or a personal loan, at the full monthly payment
  • Credit card balances, often assessed at a percentage of the limit
  • Childcare costs, which lenders treat as a fixed commitment
  • Student loan repayments taken from your pay
  • Other dependants and committed regular outgoings
  • A short term, since a 20 year term costs more monthly than a 30 year one
Clearing a £9,000 car finance agreement with £300 monthly payments can lift borrowing capacity by roughly £20,000 with some lenders. The same money in the deposit lifts it by £9,000.

What counts as income

Basic salary always counts. Everything else varies by lender, and that variation is why lenders can give different answers.

Overtime and bonusOften counted at 50% to 100%, usually needing a two year history. Some lenders ignore it entirely.
Self-employed profitUsually two years of accounts or tax calculations. Some lenders will use the latest year, some average two.
Rental incomeSometimes counted, sometimes only used to cover the property it comes from.
Benefits and maintenanceChild Benefit, tax credits and maintenance are accepted by some lenders and ignored by others.

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Term changes the monthly figure

A longer term lowers the monthly payment and raises the total interest. It also raises what a lender will lend, because affordability is measured monthly.

Lenders will not usually let the term run far past your expected retirement age. That caps the term for older applicants and cuts what they can borrow.

Where you stand

You are in a good position if
  • Your income has been steady for at least six months
  • You have no car finance or personal loans running
  • Your credit card balances are low against their limits
  • You are on the electoral roll at your current address
Expect a lower figure if
  • You have childcare costs or other dependants
  • You took credit in the last three months
  • A large part of your pay is bonus or overtime
  • You need a shorter term because of your age

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

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Questions people actually ask

How much can I borrow on a mortgage?
As a starting point, four to four and a half times income. The lender then subtracts your committed outgoings, so credit commitments and childcare reduce it noticeably.
Does clearing a credit card increase what I can borrow?
Usually yes, particularly if the balance is high relative to the limit. Some lenders assess a percentage of the limit rather than the balance, so closing an unused card can help too.
Do lenders count overtime and bonuses?
Many do, typically at 50% to 100% and usually with a two year track record. Policy varies a lot between lenders, which is why it pays to compare lenders.
Can I borrow more with a bigger deposit?
A bigger deposit raises the price you can afford and often lowers the rate. It does not remove the income and affordability cap on the loan itself.
Why do lenders give different answers?
Because each one runs its own affordability model. Two lenders can differ by tens of thousands of pounds on identical figures.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Where to go next

First-time buyer guideThe full process.Deposits explainedHow the percentage sets the rate.Mortgage in principleGetting a real figure.Self-employed?What counts as income.Credit score explainedThe other half of the decision.MortgagesHow our introduction works.
Where these figures come from

Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.

Written by Ben Tomlin. Mortgage advice goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

Last reviewed September 2026.

Want a real number rather than a rule of thumb?

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This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

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