Want to know roughly how much you could borrow for a mortgage?
A quick estimate now could save you hours of research and help you focus on properties in the right price range.
Getting a ballpark figure for your mortgage borrowing doesn’t need complex calculations or credit checks. These simple sums will give you a rough idea of what might be possible, helping you understand your options before speaking with lenders or brokers.
You can get a good feel for potential property prices and monthly payments using basic details about your income and outgoings.
Whether you’re dreaming about your first home or planning a move to somewhere bigger, these rough mortgage estimates will point you in the right direction.
Roughly How Much Can You Borrow
Most mortgage lenders start by looking at your yearly income.
You can quickly estimate your potential borrowing by multiplying your annual salary by 4 or 4.5. On a £50,000 salary, this means you might borrow between £200,000 and £225,000.
For joint applications, add both incomes before multiplying.
Take a couple earning £30,000 and £35,000 – together they might borrow around £260,000 to £292,500.
But remember, your other financial commitments affect these numbers. Monthly payments for credit cards, loans, or child maintenance all reduce your borrowing potential.
Let’s look at a real example: A £450,000 house needs earnings of about £89,000 yearly to get a 90% LTV mortgage. This could come from one high earner or two more modest salaries combined.
But it’s not just about how much you earn – your monthly spending habits matter too.
Your regular outgoings shape what lenders call ‘affordability’ – the amount you can comfortably repay each month after all your other costs.
Bills, subscriptions, and regular spending all count. That’s why two people earning the same might be offered different mortgage amounts.
Read more: What size mortgage could I afford to borrow?
Rough Mortgage Deposit
Your deposit affects both your borrowing options and monthly costs.
First-time buyers usually need at least 5% of the property’s value, but a 10% deposit opens doors to better mortgage rates and more lender choices.
For a £400,000 property:
- With 5% you’d need £20,000
- At 10% it’s £40,000
- Reaching 15% means £60,000
Use our deposit calculator to see how much money roughly you need for a mortgage deposit.
Remember that there will also be other costs such as stamp duty, legal fees and mortgage fees.
Moving home?
Your current property’s equity usually provides all or most of your deposit.
Many people moving house aim for 15-25% deposits as these unlock more competitive mortgage deals and lower monthly payments.
Read more: A Guide to Mortgage Deposits
Rough Mortgage Calculator
Understanding rough monthly costs helps you plan your budget realistically.
A straightforward way to estimate repayments is to look at costs per £100,000 borrowed.
With a standard repayment mortgage over 25 years, each £100,000 borrowed usually means paying between £500-£600 monthly.
Taking our earlier £400,000 example, this suggests monthly payments between £2,000 and £2,400.
Your mortgage term makes a big difference here.
Stretching to 35 years brings lower monthly payments but costs more overall. On that same £400,000 mortgage, choosing 35 years instead of 25 could cut your monthly payment by £400-£500 – but you’ll pay thousands more in interest over time.
Interest-only mortgages show smaller monthly figures because you’re just paying the interest, not reducing the loan amount. These are rare for home purchases now – they’re mainly used for buy-to-let properties.
If you’re looking at interest-only options, you’ll need a solid plan to repay the full loan amount when the mortgage ends.
Read more: How do you repay an interest only mortgage?
To get a more accurate idea of what you could pay each month, speak to a whole of market mortgage adviser.
They will be able to give you tailored repayment figures, based on your individual circumstances.
ROUGH MONTHLY REPAYMENTS
Rough cost of a 150K mortgage
| 4% | 5% | 6% |
|---|---|---|
| £790 | £875 | £965 |
Rough monthly payments shown. Assumes repayment method and 25 year term.
Rough cost of a 250K mortgage
| 4% | 5% | 6% |
|---|---|---|
| £1320 | £1460 | £1610 |
Rough monthly payments shown. Assumes repayment method and 25 year term.
Rough cost of a 400K mortgage
| 4% | 5% | 6% |
|---|---|---|
| £2110 | £2335 | £2575 |
Rough monthly payments shown. Assumes repayment method and 25 year term.
Rough cost of a 500K mortgage
| 4% | 5% | 6% |
|---|---|---|
| £2635 | £2925 | £3220 |
Rough monthly payments shown. Assumes repayment method and 25 year term.
Is This Rough Calculator Right for You?
These quick sums work particularly well if you’re employed with a regular salary.
First-time buyers often find them most helpful for initial budget planning before viewing properties.
You’ll get the most accurate results if your finances are straightforward – regular income, standard outgoings, and clear credit history.
Moving house?
Factor in your current property’s equity when using these calculations. The amount you’ll have for your next deposit depends on your existing mortgage balance and your home’s current value.
Speaking with estate agents can help you get accurate figures.
Buy-to-let investors need a different approach.
Lenders focus more on potential rental income than your salary. They’ll want the expected rent to cover at least 125% of the monthly interest only mortgage payment, sometimes more.
Self-employed?
These rough guides still help, but lenders will examine your income differently.
They’ll look at your self-employed earnings over the last 2-3 years, considering business profits or salary plus dividends if you run a limited company.
Variable income or recent changes to your business structure might mean speaking with a broker for a more precise estimate.
Read more: Can I get a mortgage if I’m self-employed?
What Could Affect Your Borrowing Power?
Several factors can increase or decrease your maximum borrowing beyond these basic calculations.
Employment type matters more than you might expect – permanent employees often access higher multiples than contractors or recent business owners.
Professional qualifications can help too – some lenders offer enhanced terms for certain qualified professionals such as; accountants, doctors, and solicitors.
Your credit record influences both how much you can borrow and at what rate.
Clean credit history might mean access to higher income multiples and better interest rates. Previous credit problems don’t rule out borrowing, but they might mean you need a larger deposit or face higher interest rates.
Current financial commitments directly impact your borrowing power.
Car finance, store cards, and personal loans all count against you. Even commitments that might seem separate from your mortgage – like school fees or pension payments – affect what you can borrow.
This is because they are regular commitments that reduce your disposable income.
Property type plays a bigger role than many realise. Standard houses and flats usually mean straightforward lending, but unusual properties need specialist mortgages.
Listed buildings, eco-homes, or properties above commercial premises often need specific lenders who understand these markets.
Taking the Next Step: Getting Real Figures
Ready to move beyond rough estimates?
An Agreement in Principle (AIP) gives you a more accurate borrowing figure. Most lenders provide these through a soft credit check, meaning your credit score isn’t affected.
You’ll need your last three months’ payslips, recent bank statements, and proof of deposit source.
The AIP process usually takes 15-20 minutes online, or slightly longer through a broker who’ll compare multiple lenders.
Estate agents often ask to see your AIP before arranging viewings – it shows you’re a serious buyer who’s likely to secure mortgage funding.
Remember that an AIP doesn’t guarantee final mortgage approval.
It’s based on basic information, while a full mortgage application involves deeper checks. But it’s a useful next step that helps you house-hunt with confidence.
Read more: Guide to applying for a mortgage
Why Getting Expert Help Makes Sense
While these rough calculations start you off, mortgage brokers offer invaluable insights for your specific situation.
They know which lenders offer the best terms for your circumstances and often access deals unavailable on the high street.
Brokers prove especially valuable if your situation isn’t straightforward.
- Self-employed for less than three years?
- Variable income from bonuses or overtime?
- Planning to borrow into retirement?
A good broker knows exactly which lenders will consider your application favourably.
Ready to get a clearer picture of your mortgage options?
Our recommended brokers can help you understand exactly what’s possible, finding the right mortgage for your needs. They’ll guide you through the entire process, from rough estimates to moving into your new home.
Frequently Asked Questions
While they give you a good starting point, rough calculations are estimates only.
Your actual borrowing amount will depend on the lender’s assessment of your full financial situation. They’re most useful early in your property search to help set a realistic budget.
Yes – but lenders need to see proof of your income, usually through 2-3 years of accounts or tax returns. Most consider your average profit or salary plus dividends if you run a limited company.
A broker can help find lenders who better understand self-employed income.
Read more: Self-Employed Mortgages
Roughly speaking, most first-time buyers need at least 5% of the property value, giving a 95% LTV mortgage.
However, 10% or more gives you access to better 90% LTV mortgage rates. Some lenders ask for 15% or more, especially if you’re self-employed or have credit issues.
Read more: A Guide to Mortgage Deposits
Student loan repayments reduce your disposable income, which affects how much you can borrow. Lenders include them as a monthly commitment, just like other loans. The impact depends on your earnings and repayment plan.
Read more: Does a student loan affect your mortgage?
Yes, though the term length might be shorter as many lenders have maximum age limits at mortgage end (often 70-75). Some specialist lenders offer mortgages into later life, especially if you have a good pension income.
Yes – gifted deposits from family members are widely accepted. The person giving the gift needs to confirm in writing that it’s a genuine gift, not a loan.
Some lenders have specific requirements about who can gift deposits.
Read more: What is a family deposit mortgage?
