Free House Budget Calculator UK – 2026 Mortgage Estimator

Use this free Mortgage Affordability Calculator UK to see how much you could borrow based on your salary, deposit, debts and monthly expenses. Get an instant estimate of your borrowing limit and monthly mortgage payments — no signup required

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⚠️ Advisory only: This tool provides estimates for guidance. For financial advice, speak to a qualified professional.

Mortgage Affordability Estimator: Calculate how much you could borrow for a home loan.

Mortgage Affordability Estimator

Applicants (leave income empty to ignore an applicant).

Applicant Annual income Credit score band
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#2
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Assumes a DTI cap of 35% of gross monthly income and applies the lowest credit score multiplier.

Enter the property details, then add 1–4 applicants with income and credit score band.

The Salary Multiples Table

Household Income4x Multiple (Conservative)4.5x Multiple (UK Average)5x Multiple (Professional/High Earners)
£30,000£120,000£135,000£150,000
£50,000£200,000£225,000£250,000
£80,000£320,000£360,000£400,000
£100,000£400,000£450,000£500,000

Single vs. Joint Applicants

Single Applicant

Applying alone? Lenders look closely at your ‘disposable income.’ Because you don’t share household bills, your ‘stress test’ might be stricter. Most single applicants are capped at 4x to 4.5x salary.

Joint Applicants

Applying with a partner? Lenders combine both gross salaries. This significantly boosts your borrowing power. However, be aware that if one partner has significant debt, it can lower the total amount the household can borrow.

Can I use this calculator if I have a low credit score?

Yes, this calculator gives you the mathematical limit based on income. However, if you have a low credit score or CCJs, UK lenders will likely reduce your ‘Income Multiple.’ For example, instead of 4.5x your salary, a specialist ‘bad credit’ lender might only offer 3x or 3.5x to reduce their risk. You will also likely need a higher deposit (15%+) than a standard applicant.

Why Use This Mortgage Affordability Estimator Calculator?

Instant & lightweight

No sign-ups. Results update as you type.

Full amortization

See payment split, balance and total interest.

Deposit & over-payments

Factor in down payment and optional extra payments.

Shareable

Copy a link that preserves your inputs and result.

Process (3 Quick Steps)

1

Enter price & deposit

We’ll calculate the loan amount.

2

Read the results

Monthly payment, totals, and schedule.

3

Set APR & term

Pick fixed/typical APR and years.

How to Use This Mortgage Affordability Estimator

  • Keep currencies, APR and term realistic for today’s market.
  • Enter deposit as a £ value or % (if your widget supports both).
  • Change one variable at a time to see the impact.
  • This tool excludes taxes/insurance/fees unless your widget adds them.

How Mortgage Payments Work

Repayment mortgages use amortization: each monthly payment includes interest on the remaining balance and principal that reduces that balance. Early payments are interest-heavy; later payments are principal-heavy. Deposit lowers the loan amount; rate and term shape the payment and total interest.

Mortgage Calculation Formulas (UK)

Monthly interest rate:
r = Interest Rate / 12

Monthly payment (repayment mortgage):
PMT = r × Loan Amount / (1 − (1 + r)^−n)

Remaining balance after k payments:
Bk = Loan × (1 + r)^k − PMT × ((1 + r)^k − 1) / r

Total paid and total interest:
Total Paid = PMT × n
Total Interest = Total Paid − Loan Amount

Worked Example (UK)

Property price: £300,000
Deposit: £30,000 (10%)
Mortgage loan: £270,000
Interest rate: 4.0%
Mortgage term: 25 years (300 months)

  • Monthly payment ≈ £1,426.89
  • Total paid ≈ £428,067
  • Total interest ≈ £158,067
  • Balance after 5 years ≈ £229,227

Common Mortgage Affordability Mistakes to Avoid (UK)

Mistake 1: Borrowing the Maximum the Bank Will Offer

The problem:
Just because a lender offers you a large mortgage does not mean it is affordable. UK lenders base offers mainly on income multiples and credit checks, but they do not fully account for:

  • Lifestyle choices
  • Childcare costs
  • Future interest rate rises
  • Job changes or self-employment risk
  • Ongoing home maintenance

Better approach:
Aim to borrow 80–85% of the maximum you are offered.

Example:

  • Maximum offer: £400,000 → ~£2,100/month
  • Sensible target: £330,000–£340,000 → ~£1,750–£1,800/month
  • Extra cash: ~£300/month breathing room

Mistake 2: Ignoring the True Monthly Cost of Owning

In the UK, buyers often focus only on the mortgage payment and forget:

  • Council tax (£120–£350+/month)
  • Buildings & contents insurance (£40–£80/month)
  • Service charges (leasehold) (£0–£500+/month)
  • Ground rent (where applicable)
  • Utilities (often higher than renting)
  • Maintenance (allow ~1% of property value per year)

Example:

  • Mortgage: £1,500
  • Council tax: £250
  • Insurance: £60
  • Service charge: £180

True monthly cost: £1,990 (over 30% higher than the mortgage alone)

Mistake 3: Not Comparing Mortgage Lenders

The problem:
Mortgage rates and fees vary significantly between UK lenders.

Example (£270,000 mortgage, 25 years):

  • Lender A: 4.75% → £1,537/month
  • Lender B: 4.40% → £1,485/month
  • Lender C: 4.10% → £1,437/month

Difference: £100/month = £30,000+ over the mortgage term.

Better approach:
Always compare:

  • High-street banks
  • Building societies
  • Online lenders
  • A whole-of-market mortgage broker

Mistake 4: Taking on New Credit Before Completion

The problem:
UK lenders re-check your finances before completion. Common mistakes include:

  • Financing a car
  • Using buy-now-pay-later
  • Opening new credit cards
  • Large unexplained transfers

Even a small monthly commitment can cause the lender to withdraw the offer.

Rule:
From mortgage offer to completion — change nothing financially.

Mistake 5: Skipping Surveys

Trying to save £400–£700 by skipping a survey can cost thousands later.

Common issues discovered:

  • Roof repairs (£5,000–£15,000)
  • Damp and timber problems
  • Structural movement
  • Outdated electrics or plumbing

UK surveys:

  • Homebuyer Report: £400–£700
  • Building Survey: £700–£1,500

Always appropriate for the property type and age.

Mistake 6: Using All Savings for the Deposit

After completion you still need money for:

  • Legal fees
  • Stamp Duty Land Tax (if applicable)
  • Moving costs
  • Immediate repairs
  • Emergency fund

Rule of thumb:
After buying, keep 3–6 months of expenses in savings.

Mistake 7: Underestimating Council Tax

Council tax varies widely by local authority and band.

Same £300,000 home:

  • Band C: £1,600/year (£133/month)
  • Band E: £2,600/year (£217/month)

Always check the council tax band before offering.

Mistake 8: Not Understanding Fixed vs Variable Rates

Fixed-rate mortgages:

  • Stable payments
  • Protection from rate rises
  • Most popular in the UK

Variable / tracker mortgages:

  • Cheaper initially
  • Payments rise if base rate increases
  • Risky without spare cash

Most buyers benefit from a 2- or 5-year fixed rate unless highly flexible financially.

How Mortgage Affordability Works in the UK

Income Multiples

Most UK lenders lend 4.0–4.5× gross annual income, sometimes higher for:

  • High earners
  • Joint applicants
  • Low debt households

Example:

  • Household income: £70,000
  • Typical maximum mortgage: £280,000–£315,000

This is only a guide — affordability checks still apply.

Credit Score (UK)

UK credit files come from:

  • Experian
  • Equifax
  • TransUnion

Lenders look at:

  • Payment history
  • Credit utilisation
  • Stability
  • Existing debt
  • Electoral roll registration

Higher scores = better rates, not just approval.

Deposit Requirements (UK)

  • 5% deposit: limited options, higher rates
  • 10% deposit: good availability
  • 15–20% deposit: strong rates
  • 25%+: best pricing

In the UK, you don’t pay PMI; instead, your interest rate (APR) is simply higher for lower deposits.

Employment & Income Stability

  • PAYE: usually straightforward
  • Self-employed: 2 years’ accounts (sometimes 1 with strong evidence)
  • Bonuses/commission: must be consistent

Final Advice

  • Borrow less than you’re offered
  • Stress-test your payment at higher rates
  • Budget for full ownership costs
  • Keep savings after completion
  • Use a whole-of-market broker

Mortgage Affordability in the UK – Frequently Asked Questions

It estimates how much you could borrow for a UK mortgage based on your gross annual income, credit profile, deposit, interest rate, and term. It also calculates your monthly repayment and total property budget.

Yes — you can add up to four applicants. The tool combines all incomes and uses the lowest credit profile among the group to give a realistic, broker-style affordability estimate.

The estimate uses UK industry-standard salary multiples and conservative lending assumptions. It is a realistic starting point, but final offers depend on a lender’s specific “stress test” and your discretionary spending (e.g., childcare, travel, subscriptions).

You can enter a current market rate (e.g., for a 2-year or 5-year fixed deal). We recommend checking today’s average UK mortgage rates or speaking with a “whole-of-market” broker for the most accurate figure.

We use four bands: Excellent, Good, Fair, and Poor. These affect the interest rates available to you. Lenders look at your reports from Experian, Equifax, or TransUnion; the lowest score in a joint application often dictates the rate.

No — the estimate focuses on loan affordability. You must separately budget for Council Tax, buildings insurance, solicitor fees, and Stamp Duty (SDLT).

In the UK, lenders typically use a 4.5x salary multiple. On a £50,000 annual income, you can typically borrow around £225,000. Adding a 10% deposit (£25,000) would give you a total property budget of £250,000.

Factors that affect this range:

  • Existing Debts: Heavy credit card balances or car finance (£400/month) can reduce your borrowing power by £30,000–£50,000.
  • Credit Profile: An “Excellent” score may grant you access to 5x or 5.5x multiples (available for certain professions), while a “Poor” score may limit you to 3x or 4x.
  • Deposit Size: A 25% deposit (75% LTV) unlocks much lower interest rates than a 5% deposit.
  • Local Costs: High Council Tax bands or expensive service charges (on leasehold flats) will reduce the monthly “free cash” lenders see during affordability checks.

While the US uses strict percentages like 28/36, UK lenders focus on “Restricted Disposable Income.” Generally, your mortgage payment should not exceed 35% of your take-home (net) pay.

UK Affordability Tiers:

  • Conservative (Under 25% of net income): Highly likely to pass lender “stress tests.” Provides a massive cushion for interest rate rises.
  • Standard (25–35% of net income): The typical range for most UK homeowners.
  • Aggressive (35–45% of net income): May struggle if interest rates rise. Lenders will scrutinize your bank statements for “luxury” spending.
  • High Risk (Over 45% of net income): Most UK lenders will decline this due to “Responsible Lending” guidelines.

How to Calculate Your DTI: (Total Monthly Committed Debts ÷ Gross Monthly Income) x 100

In the UK, the answer depends on your Loan-to-Value (LTV) bracket.

  • Pay Off Debt First If: You have high-interest credit cards (19%+ APR). Lenders subtract monthly debt repayments from your “allowable” mortgage payment, often reducing your borrowing power by far more than the debt’s value.
  • Save for Deposit First If: You are close to a “threshold.” UK interest rates drop significantly at 90%, 85%, 80%, and 75% LTV. If an extra £2,000 deposit moves you from 91% to 90% LTV, save the money!

Yes, but you will likely need a Specialist Lender rather than a high-street bank (like Barclays or HSBC).

  • Impact of Lower Credit: You may be required to provide a larger deposit (minimum 15–20%) and pay an interest rate 2–3% higher than the market average.
  • UK Credit Tips: Ensure you are on the Electoral Roll and have no “Payday Loans” on your file from the last 12 months, as these are instant rejections for many UK banks.
  • 5% Deposit: The minimum for most “First-Time Buyer” schemes.
  • 10% Deposit: Unlocks a much wider range of high-street lenders.
  • 25% Deposit: The “sweet spot” for the lowest possible interest rates.

Don’t forget the “Moving Pot” (Upfront Costs):

  • Stamp Duty: Check 2026 thresholds (First-time buyers usually get relief up to a certain property value).
  • Solicitors/Conveyancing: Budget £1,200–£2,500.
  • Survey: A HomeBuyer Report (Level 2) or Full Structural Survey (Level 3) costs £400–£1,000.

To buy a £300,000 home with a 10% deposit (£30,000), you need a mortgage of £270,000.

  • Based on the standard 4.5x multiple, you would need a combined household income of £60,000.
  • If you have significant student loans or car finance, you may need closer to £65,000–£70,000 to pass the affordability check.

In the UK, you should get an MIP before you start viewing houses.

  • Why? Most UK estate agents will not allow you to book a viewing or make an offer without seeing a valid Mortgage in Principle. It proves you are a “qualified buyer.”
  • Validity: They usually last 60 to 90 days. Obtaining one involves a “soft” credit check that doesn’t damage your score.

Wondering “how much can I borrow?” Our free UK mortgage affordability calculator helps you determine your budget based on your salary, existing debts, and deposit. Unlike other tools that require signups or contact details, our estimator gives you instant results.

Key UK Features:

  • Instant Results: No email or signup required.
  • Joint Applications: Support for up to 4 co-applicants.
  • Amortisation Schedule: See how your balance drops over 25–40 years.
  • UK Localized: Built for UK salary multiples and lending rules.
  • Shareable: Generate a unique link to show your Estate Agent or Partner.
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What Our Clients Say About Tools

Overall Rating
5.0/5 3 reviews
Priya

This estimator feels like a mini financial advisor. It’s incredibly helpful for first-time buyers to understand their limits. The income-to-debt ratio logic is spot on.

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Dhruv

This tool is a lifesaver for budgeting. It’s intuitive and gives a clear breakdown of monthly payments. I especially like the amortization summary—it’s great for planning long-term.

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Rohan

Simple, fast, and accurate. The BMI Calculator gives instant results with clear health categorization. I appreciate the clean layout and mobile responsiveness—it’s perfect for quick checks on the go

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⚠️ All services are offered on an advisory basis only. We do not act as legal, immigration, or financial representatives, and we do not guarantee outcomes. Any actions or applications taken based on our guidance are the sole responsibility of the individual.