Mortgage affordability calculator

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Mortgage affordability calculator

Use calculator below

  • Free, no obligation initial consultation
  • Exclusive rates
  • Hundreds of 5-star reviews
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Author: Carl Shave - CEO and co-founder
Last updated: 30 May 2024

How much can I borrow for a mortgage?

There is no set rule that outlines how much an individual can borrow. Instead, lenders will consider each application on a case-by-case basis, looking over a range of factors. This means there are several factors that play into the amount you can borrow.

The main element lenders will look at is your income; generally, the more you earn, the more you can borrow. However, if you have bad credit for example, you may not be able to borrow as much as someone who has clean credit history.

The main factors that will influence your borrowing are:

  • Number of dependents – this isn’t necessarily children.
  • Deposit size – the more deposit you can offer, the less risky you are deemed and the more you are likely able to borrow.
  • Any credit commitments – this could be credit cards or any loans.
  • Travel – some lenders may look at your travel expenditure, for example a rail pass.
  • Council tax – certain lenders ask what this will cost you.
  • Other mortgages – individuals with more than one mortgage.
  • Your age – this will dictate your term. The longer the mortgage term, the lower the payments.
  • Property value – by knowing this, the lender can assess the expected loan-to-value.

Always remember that at the end of the day, mortgage lenders needs to be comfortable knowing you can afford to meet monthly repayments. The more attractive you make yourself through this criteria, the better chance you have of getting approved. If you are struggling or just have some questions about the application process, get in touch today.

So, how do mortgage affordability calculators work?

Our residential mortgage calculator is simple and most others available are too.

Firstly, it will ask you how many applicants there are, giving you the option between 1 and 2.  Some lenders will allow more than 2 applicants for a mortgage.  However, it is typically more complex when calculating affordability with 3 or more on an application.  As such affordability usually has to be done manually in these instances.

You will then be asked about any monthly commitments each applicant has. This is to help the mortgage borrowing calculator gauge your monthly income after costs. Some of this income will then be going to mortgage payments, therefore it’s important that the questions are answered as accurately as possible.

Finally, there will be a few questions asking about your future for a mortgage. For the mortgage broker, these help to understand your situation.

Once all of these fields have been completed, you will then be given an estimate of what you could borrow. It’s important to note that this is just a guide; a lender may determine that you could borrow a lot less or a lot more. That’s why it is best to speak to an experienced mortgage broker who knows the market.

At Just Mortgage Brokers, we have experience in all types of mortgages, from Bad Credit to Shared Ownership. To get started on your mortgage journey, get in touch and we will pair you with one of our expert brokers.