The amount you can borrow for a mortgage depends primarily on your income, deposit amount, and certain financial factors including your credit rating, monthly bills, debts, and other financial commitments. Online mortgage calculators can give you an indication of the maximum amount you could borrow based on your income and deposit.
How Mortgage Calculators Work
- You provide your gross annual income, the property value you aim to buy, and the deposit amount.
- The calculator estimates the maximum loan amount based on income multiples.
- It may also show the Loan to Value (LTV) ratio to help check what rates are available.
- Note that affordability assessments by lenders also consider your outgoings, debts, credit history, and other personal circumstances.
What Lenders Consider
- Income (salary, bonuses, other sources)
- Total deposit available
- Monthly bills and other financial commitments (credit cards, loans, childcare, commuting costs)
- Credit rating and past financial behavior
Use and Limitations
- Calculators provide a rough estimate, not a guaranteed amount.
- Getting a lender's Decision or Agreement in Principle is needed for a personalized borrowing limit.
- Calculators generally do not do credit checks or take all personal details into account.
If interested, using a reputable online mortgage borrowing calculator from a trusted bank or institution is a good first step to estimate borrowing capacity quickly and easily. Would assistance be needed with a specific mortgage calculator or detailed steps on how to use one?