How much can I borrow for a mortgage?

Last updated: 24 August 2026

The short answer: most lenders will offer you between 4 and 4.5 times your annual income. But that number isn't a hard ceiling, and it hasn't been since the FCA changed its rules in 2025. Depending on your deposit, your profession, and your outgoings, you could borrow 5, 5.5, or even 6 times what you earn.

Let's break down how it actually works.

The 4.5x income multiple

For years, 4.5 times your gross annual salary was the standard limit. If you earned £30,000, most lenders would cap your mortgage at £135,000. Earn £50,000, and you'd get up to £225,000. Joint applicants earning £60,000 combined could borrow up to £270,000.

This rule came from the FCA's 2014 mortgage market review. They told lenders that no more than 15% of new mortgages could be at 4.5x income or above. It was a response to the reckless lending that fuelled the 2008 crash, when some banks offered 6x or 7x income with no affordability checks at all.

The 4.5x cap served its purpose. But it also locked out plenty of borrowers who could genuinely afford more, particularly high earners with low outgoings and large deposits.

What changed in 2025

In June 2025, the FCA removed the hard 15% flow limit on loans above 4.5x income. They replaced it with a principles-based approach: lenders must still prove the borrower can afford the mortgage, but they're no longer forced to ration higher multiples across their entire book.

The practical effect? More lenders now offer 5x, 5.5x, and in some cases 6x income for borrowers who meet stricter criteria. You won't get 6x income with a 5% deposit and £400 a month in car finance. But if you're a higher earner with a 25% deposit and minimal debts, there's genuine flexibility that didn't exist 2 years ago.

The Mortgage Charter published by the government also confirms lenders should take a more holistic view of affordability rather than relying on blunt income caps.

What counts as "income"

Lenders don't just look at your basic salary. They consider multiple income streams, but they weight them differently.

Your base gross salary counts in full. That's straightforward. Contractual overtime usually counts at 100% if you've received it consistently for 12 months or more. Non-contractual overtime is trickier; most lenders take 50% of your average over the last 12 to 24 months.

Bonuses typically count at 50% of the average over 2 years. Some lenders take only the lower of your last 2 years' bonuses. If your bonus was £10,000 last year and £6,000 the year before, expect lenders to use something between £3,000 and £5,000 as the figure they'll multiply.

Rental income from a buy-to-let property counts at around 75% with most lenders. Child maintenance and benefits income vary wildly. Some lenders accept child benefit in full, others ignore it. Tax credits often count if you can demonstrate they'll continue for the mortgage term.

Commission-based earners face the toughest time. You'll typically need 2 years of accounts, and lenders will average your earnings or take the lower year. If your income jumped from £40,000 to £70,000 in year two, many lenders will base their calculation on £40,000 or perhaps £55,000 as an average.

Quick borrowing examples

Here's what the standard 4.5x multiple gives you at different salary levels:

• £30,000 salary = £135,000 mortgage
• £40,000 salary = £180,000 mortgage
• £50,000 salary = £225,000 mortgage
• £60,000 salary = £270,000 mortgage
• £75,000 salary = £337,500 mortgage
• £100,000 salary = £450,000 mortgage

Joint applications work the same way. If you earn £35,000 and your partner earns £25,000, your combined income is £60,000. At 4.5x, that gives you up to £270,000.

And if you qualify for a higher multiple? At 5.5x, that £60,000 combined income stretches to £330,000. That's a £60,000 difference from a single multiplier change.

What lenders actually assess

The income multiple gets you a rough number. But the real decision comes down to the affordability assessment, and that's where things get more granular.

Lenders look at your monthly outgoings in detail. They want to know about:

• Credit card minimum payments (even if you pay in full each month, they count the limit)
• Car finance, HP agreements, and personal loans
• Childcare costs
• School fees
• Maintenance payments
• Other mortgage commitments
• Regular subscriptions and committed spending

They also factor in your credit score. A clean credit history over 6 years with no missed payments, defaults, or CCJs opens doors. A default from 3 years ago narrows your options to specialist lenders, who typically cap at 4x income and charge higher rates.

Deposit size matters too. It doesn't directly change the income multiple most lenders apply, but a larger deposit reduces your loan-to-value (LTV) ratio. Lower LTV means lower rates, and some lenders only offer their higher multiples (5x+) to borrowers putting down 20% or more.

The stress test

Even if you can afford repayments right now, lenders must check you could still afford them if rates rose significantly. This is the stress test.

Most lenders stress test at the Bank of England base rate plus 3 percentage points, or their standard variable rate, whichever is higher. In August 2026 with the base rate at 4.5%, that means lenders check you can handle repayments at roughly 7.5%.

On a £200,000 repayment mortgage over 25 years, the actual payment at 4.5% is £1,111 per month. But at the stress test rate of 7.5%, the payment jumps to £1,478. You need to prove you can handle that higher figure with your income and outgoings.

This is often why lenders offer you less than you'd expect from a simple salary x 4.5 calculation. The stress test effectively reduces your maximum borrowing, particularly if you have high committed outgoings.

What reduces your borrowing power

Existing debts are the biggest drag. A £300 per month car finance payment doesn't just reduce your disposable income; it reduces the mortgage amount a lender will offer by approximately £15,000 to £20,000 depending on the lender's model.

Credit card balances hurt even if you pay them off monthly. Some lenders use 3% to 5% of your credit limit as a notional monthly commitment. If you've got £10,000 of available credit across your cards, that's £300 to £500 of phantom outgoings in the lender's eyes.

Student loans are treated differently by different lenders. Plan 1 and Plan 2 loans count as a deduction from your gross income with some lenders, and as a monthly outgoing with others. The repayment is 9% of earnings above £27,295 (Plan 2) or £24,990 (Plan 1) in 2026/27. On a £35,000 salary, that's £58 per month on Plan 2.

Childcare costs are taken at face value. If you're paying £1,200 a month in nursery fees, that dramatically reduces what you can borrow. But some lenders will consider that nursery costs end when the child starts school, so they might use a lower figure if your child is already 3 or 4.

What increases your borrowing

A larger deposit is the single most effective way to borrow more. Moving from 90% LTV to 85% LTV doesn't just get you a better rate; it opens access to lenders who offer higher multiples. At 75% LTV (25% deposit), several lenders will stretch to 5x or 5.5x for the right borrower.

Your profession can help too. A number of lenders run "professional" schemes for doctors, dentists, lawyers, accountants, vets, and architects. These schemes acknowledge that early-career professionals often have high student debt but rapidly rising incomes. Typical terms include 5.5x income multiples, acceptance of future income growth, and more generous treatment of student loans.

Barclays, Halifax, and several building societies offered professional mortgages in 2026. The criteria vary, but you'll generally need to be qualified (not still training), employed in your profession, and have at least 10% deposit.

Clean credit helps indirectly. It doesn't change the income multiple, but it gives you access to every lender on the market. More competition means better terms and more willingness to stretch on affordability.

Self-employed borrowers

If you're self-employed, lenders want 2 to 3 years of accounts or SA302 tax calculations from HMRC. They'll typically use your average profit over the last 2 years, or the lower of the 2 years if your income dropped recently.

Limited company directors face an extra quirk. Some lenders only count salary plus dividends declared on your tax return. Others will use your share of retained profits. The difference can be tens of thousands in borrowing capacity. If your company retains £50,000 in profit but you only draw £30,000, the right lender makes a substantial difference.

Contractor mortgages use a different model entirely. Specialist lenders will annualise your day rate. If you earn £450 per day, they'll calculate 5 days x 48 weeks = £108,000 annualised income. At 4.5x, that's a £486,000 mortgage. You'll need 12 months of continuous contracting history to qualify.

The FCA's 2025 changes in practice

So who's actually benefiting from the relaxed rules? From what's available in the market as of mid-2026:

• Nationwide offers up to 5.5x income for first-time buyers earning £37,000+ with at least a 5% deposit
• Several building societies offer 5x to borrowers with 15%+ deposit and clean credit
• Private banks and specialist lenders stretch to 6x for high earners (£100K+) with 25% deposit
• Professional schemes from Barclays and Halifax go to 5.5x for qualifying professionals

But the 4.5x standard hasn't disappeared. If you walk into any high street lender with a 10% deposit and average income, 4.5x is still what you'll be offered. The new flexibility benefits those at the edges: higher earners, bigger depositors, qualifying professionals.

How to find your actual maximum

Online calculators give you a starting point, but they can't account for every lender's individual criteria. A mortgage broker searches the whole market and knows which lenders treat overtime, bonuses, or self-employed income most favourably for your situation.

That said, you can get a solid estimate by taking your gross annual income, multiplying by 4.5, and then adjusting downward for any significant debts. If you've got a car payment, credit cards, or other loans, knock £15,000 to £20,000 off for each £300 per month in commitments.

And if you're ready to get a proper figure, speak to a whole-of-market broker. They'll pull your credit file, assess your full financial picture, and tell you exactly which lenders will stretch furthest for your circumstances. Many don't charge the borrower a fee; they're paid by the lender on completion.

This is a general guide, not financial advice. For personalised mortgage recommendations, speak to an FCA-regulated mortgage adviser.