How much you can borrow with a Mortgage in the UK

Mortgage Guide

Mortgage Basics
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How much can I borrow?

This depends on three factors

1) How much you earn ... Read More

2) How much the property you want to buy is worth ... Read More

3) How much the mortgage lender thinks you can afford ... Read More

Read On

See all our Mortgage Calculators now for

How much can I borrow Exactly?

How Much will my Mortgage Cost per Month

How Much Can a Couple Borrow Together

1) Depending on how much you earn

The amount you can borrow will vary between lenders but the rule of thumb is three and a half times your annual earnings.

You may get up to four times your earnings, particulalry if you have a good mortgage broker.

For a couple buying together typical variations would include:

Couple 1: two and a half times both annual incomes.

Couple 2: three to three and a half times the greater income plus one year of the second income.

You can check out our couple's calculator, to see how much you can borrow.

Here's a secret

Assuming you have a regular income and clean credit history you're likely to get a loan fairly easily.

Despite the impression you may be given that you've got to jump through the hoops, the competition between lenders to get your business is fierce.

Some lenders now use more sophisticated credit rating methods, where they examine your income and your outgoings.

The idea is that every borrower has unique circumstances. Someone with teenage children and high outgoings can't afford to borrow as much as a singleton earning the same salary.

Sometimes people are lent five times income.

The quickest way to find out how much you can borrow is to ask an experienced, independent mortgage adviser. They usually have long standing relationships with the mortgage lenders and know exactly what you can stretch to. We can put you in contact with an independent regulated one from here click here to get this now

2) Depending on how much the property is worth.

Most lenders will loan up to 75% of the property's value. (This is known as the loan to value ratio )

Some will lend up to 90 or 95% of the property's value.

Some will let you have up to 100% ie a 100% mortgage - but you'll pay over the odds - ie a higher interest rate for this

.... and you will probably be forced to buy mortgage indemnity insurance (bad).

A few mortgage lenders will even lend you more than 100% but special rules will apply.

Depending on the area you want to buy in, the lender may refuse a loan, for example if they feel the property isn't expensive enough for the area.

More often, it's the opposite case - where a property is seen as too expensive.

Some mortgage lenders will put a limit on the amount they'll allow on certain types of property. For example thatch roofed, timber framed.... and houseboats? Well that's a whole different deal.

3) Depeding on how much the mortgage lender thinks you can afford

You may be able to get a mortgage which stretches your budget to the limit but leaves you in trouble when you have to pay the other costs involved in buying your home and its future running costs

Some lenders will want to estimate this by checking your average outgoings eg your household bills, any debts etc. Some will get you to fill in a detailed questionnaire either by hand or on the phone or online etc.

Note that how much you can borrow is not necessarily what you can afford To read more about this now click here

If you're a first time buyer it will always help if you can show you've been paying regular rent for a similar amount to what your intended mortgage payments will be.

Want to talk with a mortgage adviser who specialises in helping First Time Buyers?

We can put you in contact with a professional mortgage adviser who will find you your best mortgage. It's free and completely confidential. Simply fill out the form below


Value of Property	£
		(eg 125000)

Borrow How Much?	£
		(eg 92500)

Your Mortgage Type

First time buyer?		Yes No
Have you found property?		Yes No
Country

Sorry ! The amount you want to borrow is less than £25,000. This is the minimum allowed for a mortgage. But don't worry! You could get the money via a personal loan. I want a free no obligation loan quote Click OK No thanks. I will change my borrow amount to more than £25,000 Click Cancel