Free Tool

Calculate Your
Mortgage Affordability

Comprehensive affordability assessment with stress testing, tax calculations, and living expense analysis. See what lenders will actually approve.

£

Your main annual salary before tax and NI

£

Partner's income, bonuses, commission, etc.

£

Loans, credit cards, car finance (monthly payments)

£

Utilities, food, council tax, transport, insurance, etc.

£

How much you have saved for a deposit

%

Current average: 4.5%

years

Common terms: 25-35 years

How much do you want to borrow?

£144,589

Property price: £194,589

100% of your maximum

£50,000£144,589

💡 Drag the slider to explore different borrowing amounts

Your Monthly Payments

At Current Rate (4.5%)

£804

per month

Stress Test (7.5%)

£1,069

per month (FCA requirement)

Payment-to-income ratio:33.7% of net income

manageable Affordability

Manageable affordability. Your stress-tested payment is 25-35% of net income.

How This Calculator Works:

This calculator mirrors real UK lender practices: it applies the standard 4.5x income multiple, calculates your net income after tax and NI, conducts FCA-mandated stress testing at 7.5%, and analyzes your disposable income. Your maximum is the LOWER of income-based and affordability-based limits. Use the slider to explore different borrowing amounts and see how affordability changes.

Remember:

This is a comprehensive estimate, but actual mortgage offers depend on credit score, employment type, property type, and individual lender policies. Always get a Decision in Principle (mortgage in principle) before making an offer on a property.

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Understanding True Mortgage Affordability in the UK

Mortgage affordability isn't just about income multiples. UK lenders conduct comprehensive assessments that include stress testing at higher interest rates, detailed budget analysis, and tax calculations. Our calculator mirrors real lender practices to give you an accurate picture of what you can actually borrow.

FCA Stress Testing Requirements

Since 2014, UK lenders must stress test your affordability at higher interest rates (typically 3% above the actual rate, or minimum 7% total). This ensures you could still afford payments if rates rise. Our calculator applies these same stress tests to show you realistic borrowing limits.

Why Net Income Matters

While lenders use gross income for the 4.5x income multiple, they calculate your actual affordability using net income (after tax and National Insurance). Our calculator automatically deducts UK tax and NI to show you realistic monthly budget figures.

Living Expenses and Disposable Income

Lenders don't just look at debt commitments - they consider all your monthly living expenses (utilities, food, council tax, transport, etc.). We use ONS average household data as defaults, but you can customize based on your actual situation.

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