How much can I borrow for a mortgage?
The income multiples lenders use, what your salary allows, and how outgoings and your deposit change the figure.
How much you can borrow comes down mostly to your income. As a rough guide, most lenders will let you borrow around 4 to 4.5 times your annual income, and sometimes up to 5 times, so someone earning £40,000 might borrow about £180,000. Your deposit adds to that to set the price you can reach, and your outgoings and an affordability check can move the final figure up or down.
The short version
- Lenders start from a multiple of income, commonly around 4.5 times.
- Both incomes count on a joint application, so couples can often borrow more.
- Committed outgoings reduce what you will be offered.
- Your deposit adds to the loan to set the total price you can reach.
Income multiples
The starting point for almost every lender is a multiple of your income. Around 4.5 times is the common benchmark: multiply your annual income by 4.5 and you have a rough ceiling on the loan. A £40,000 income points to about £180,000, and £60,000 to about £270,000. Some lenders cap a little lower at 4 times, and some stretch to 5 times or beyond for higher earners or particular professions.
You can try those multiples against your own income with the mortgage affordability calculator, which also adds your deposit to show the price you could reach.
How much can I borrow on my salary?
Putting the multiples together, here is roughly what different salaries point to at 4, 4.5 and 5 times income, before any deposit and before your outgoings are taken into account.
| Annual income | At 4× | At 4.5× | At 5× |
|---|---|---|---|
| £30,000 | £120,000 | £135,000 | £150,000 |
| £40,000 | £160,000 | £180,000 | £200,000 |
| £50,000 | £200,000 | £225,000 | £250,000 |
| £60,000 | £240,000 | £270,000 | £300,000 |
On a joint application, add both incomes together and read off the combined figure. Remember these are ceilings: your outgoings and the lender's affordability check can bring the final offer down.
What counts as income
For an employee, the figure is your gross annual salary, often topped up by a share of regular extras like a reliable bonus, overtime or commission. Lenders treat those extras cautiously, because they want income they can count on. If you are self-employed, expect to be assessed on your profits over the last two or three years rather than your turnover.
On a joint application both incomes are taken into account, which is the main reason two people can usually borrow more than one. The flip side is that both sets of outgoings count too.
How outgoings affect it
The income multiple sets the ceiling, but your committed outgoings pull the figure back down. Lenders look at regular commitments such as personal loans, car finance, credit card repayments and childcare, and reduce what they are willing to lend so the mortgage sits comfortably alongside them.
That is why clearing a loan or lowering a credit card balance before you apply can lift your borrowing more than you might expect. It also means two people on the same income can be offered quite different amounts, depending on what they already owe.
Where the deposit fits
Your deposit is separate from the borrowing, and it does two jobs. It adds to the loan to set the total price you can reach, so £180,000 of borrowing plus a £25,000 deposit buys up to £205,000. And it sets your loan-to-value, the size of the loan as a percentage of the price, which decides the rate band you fall into.
A bigger deposit means a lower loan-to-value and usually a cheaper rate. Our loan-to-value calculator shows which band a given deposit puts you in, and the mortgage repayment calculator turns the borrowing into a monthly payment.
Affordability and stress tests
Beyond the income multiple, lenders run an affordability check: they look at your income and your spending to check the monthly payment leaves you comfortable, rather than stretched to the limit. They also apply a stress test, checking you could still cope if interest rates rose above the rate you are taking.
Both checks can bring the final offer below the simple multiple, so treat the multiple as a rough maximum rather than a promise. The figure a lender gives after assessing your circumstances is the one that counts.
Common questions
- How much can I borrow for a mortgage?
- Most lenders cap borrowing at around 4 to 4.5 times your annual income, with some going to 5 times or a little beyond for higher earners. On a £40,000 income that is roughly £180,000 at 4.5 times. Your deposit then adds to that to set the price you can reach.
- Can I borrow 5 times my salary?
- Some lenders will, usually for higher earners or certain professions, but around 4 to 4.5 times income is more typical. At 5 times, a £40,000 income points to about £200,000. The larger multiple usually comes with tighter affordability checks.
- What salary do I need for a £250,000 mortgage?
- At a 4.5 times multiple you would need roughly £55,000 a year to borrow £250,000, or about £50,000 at 5 times. A deposit lowers how much you need to borrow, and so the income a lender looks for.
- How much can I borrow if I am self-employed?
- The same income multiples apply, but lenders usually base your income on your profits over the last two or three years rather than a salary, and may ask for figures from your accountant or your tax-year overviews. Two solid years of accounts makes the process smoother.
- What income multiple do lenders use?
- Around 4.5 times income is the usual benchmark, but it is a guide rather than a rule. The multiple a lender will stretch to depends on your income, your outgoings, the size of your deposit and the kind of mortgage you want.
- Does a joint application let us borrow more?
- Usually, yes. On a joint application lenders consider both incomes, so the multiple is applied to a larger figure. They also look at both sets of outgoings, so existing debts on either side still count against what you can borrow.
- What counts as income for a mortgage?
- Your gross salary is the core of it, often plus a portion of regular extras such as a dependable bonus, overtime or commission. If you are self-employed, lenders typically work from your profits over the last two or three years. Some benefits and pension income can count too, depending on the lender.
- How do my debts affect what I can borrow?
- Lenders weigh up your committed monthly outgoings, such as loans, car finance, credit card balances and childcare, and trim what they will lend so the mortgage stays affordable alongside them. Reducing those commitments before you apply can increase your offer.
- Will a lender always offer the income multiple?
- Not necessarily. The income multiple is a ceiling, but the affordability check and the stress test can bring the actual offer below it, especially if your outgoings are high or rates have risen. It is best treated as a rough maximum, not a guarantee.
About this article
Written by the calcd team. We build UK money calculators and explain the numbers behind them in plain English. Income multiples are common lender practice rather than a statutory figure, so there is no fixed rate to quote; we checked the general approach against MoneyHelper and UK lender guidance. The examples here are estimates to help you plan, not a mortgage offer or financial advice, and a lender assessing your circumstances may offer more or less. Last updated June 2026.