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Abodewise

UK Mortgage Affordability Calculator

Use this mortgage affordability calculator to estimate how much you might be able to borrow and what property price that could mean. Enter your income, deposit and monthly commitments, then adjust the assumptions to see how the estimate changes.

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Advanced assumptions (optional)
Estimated maximum loan
£270,000.00
Estimated property price
£300,000.00
Illustrative monthly repayment£1,578.39
Income multiple cap£270,000.00
Payment based cap£299,355.08
Estimated LTV (loan-to-value)90%
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How this mortgage affordability calculator works

This calculator gives a rough estimate of how much you might be able to borrow, using two common limits.

  • Income multiple: your household annual income times the multiple you enter.
  • Payment based: works backwards from a maximum monthly payment (based on your income and commitments) to an estimated loan size.

The “maximum loan” shown is the lower of those two limits. The property price estimate is maximum loan plus your deposit.

This is not lender advice and does not include credit checks, stress tests, fees, or rate changes.

Example model
This box is a fixed sanity-check using the default example numbers. It does not change when you edit the calculator.
Household income£60,000.00
Deposit£30,000.00
Income multiple4.5
Max payment share35%
Interest rate5%
Term25 years
Example outputs
Estimated maximum loan£270,000.00
Estimated property price£300,000.00
Illustrative monthly repayment£1,578.39
Income multiple cap£270,000.00
Payment based cap£299,355.08
Estimated LTV90%
Mortgage warning

This is a guide only. Different lenders have different affordability models and may offer more or less than this estimate.

If you need a figure you can rely on, speak to a qualified mortgage adviser or check directly with lenders.

How it works

This affordability calculator gives a planning estimate based on two common ways borrowing can be limited: an income-multiple cap and a payment-based cap.

  1. Income multiple cap: (your household gross income) × (the multiple you choose).
  2. Payment-based cap: estimates a maximum affordable monthly mortgage payment, then works backwards to a loan size using the rate and term you enter.
  3. Result: your “max loan” is the lower of those two caps, and “max property price” adds your deposit.

Because lenders differ, the goal here is to help you stress-test scenarios and understand which constraint is doing the limiting.

Rates and thresholds

Last verified: 05/03/2026. Lenders’ affordability rules vary; this page uses user-entered assumptions rather than a fixed lender policy table.

Inputs that act like “thresholds” here are choices, not official limits:

  • Income multiple: a simple way to model an income cap. Try a range to see sensitivity.
  • Max payment share: models a payment-based limit (for example, “no more than X% of gross income”).
  • Interest rate: acts like a stress assumption. Higher rates reduce the loan size under the payment-based cap.

If you’re comparing scenarios, change one input at a time (rate, term, deposit, commitments) to see what moves the result most.

Worked examples

These worked examples are generated from the same calculator logic as the UI. Values are rounded for display.

Example 1 — Income multiple binds

  • Income: £60,000; multiple: 4.5 → income cap £270,000
  • Deposit: £30,000 → max property price £300,000
  • Illustrative repayment at 5.00% over 25y: £1,578.39/month
  • LTV in this scenario: 90%

Example 2 — Two incomes with commitments

  • Income: £40,000 + £30,000; commitments: £1,000/month
  • Multiple: 4 → income cap £280,000
  • Deposit: £20,000 → max property price £300,000
  • Illustrative repayment at 6.00% over 30y: £1,678.74/month

Example 3 — Payment-based cap binds

  • Income: £100,000; commitments: £2,500/month
  • Max payment share: 30%; rate: 6.00%; term: 25y
  • Payment-based max loan ≈ £271,612.01 (this becomes the max loan)
  • With a £50,000 deposit → max property price ≈ £321,612.01
  • Illustrative repayment: £1,750.00/month
Edge cases and exclusions
  • Net vs gross pay: the calculator uses gross inputs; real affordability is often driven by net take-home pay and household outgoings.
  • Variable income: bonuses, commission, overtime, and self-employed income can be treated differently by different lenders.
  • Commitments: childcare, student loans, credit cards, and car finance can materially reduce affordability.
  • Interest-rate stress: the rate input changes payment-based borrowing a lot—test higher-rate scenarios.
  • Deposit source checks: this tool doesn’t check gifted deposit rules or proof-of-funds requirements.
Assumptions
  • Figures are before tax (gross).
  • This is a simplified estimate - lenders use their own affordability models and stress tests.
  • The interest rate is assumed to stay the same for the full term.
  • Monthly commitments reduce the income available for mortgage payments.
  • It does not include lender fees, broker fees, valuation fees, legal costs, insurance, or taxes.
Methodology

Income multiple cap: household annual income multiplied by your chosen multiple.

Payment based cap: estimates a maximum monthly payment from your income and commitments, then works backwards to a loan size using the interest rate and term.

Maximum loan is the lower of those two caps.

Property price estimate is maximum loan plus your deposit.

What to do next
FAQ
What does the mortgage affordability calculator actually estimate?
It gives a rough estimate of a maximum loan and a corresponding property price using two caps: an income multiple cap and a payment-based cap.
Why does the affordability estimate use both an income multiple and a monthly payment limit?
Different lenders lean on different constraints. This calculator shows both and uses the lower result as the headline “maximum loan” estimate.
Should I enter net pay or gross pay in the affordability calculator income fields?
The inputs are annual income before tax. If you only know take-home pay, you will need to convert it to an annual gross figure to use this tool.
What counts as “monthly commitments” in this affordability calculator?
It is for regular payments like loans, credit cards, car finance, and similar commitments. It is not a full affordability assessment and does not capture every household cost.
Why does changing the interest rate affect how much I can borrow in the affordability estimate?
The payment-based cap works backwards from a budgeted monthly payment, and the interest rate affects what loan size fits within that payment.
If I increase my deposit, why does the “maximum loan” not always increase?
The loan limit is driven by income and payment constraints. A bigger deposit increases the estimated property price you could afford, even if the loan cap stays the same.
Does this affordability calculator include lender stress testing and credit checks?
No. It is a simplified estimate and does not include lender-specific stress tests, credit history, dependants, or detailed expenditure models.
How should I use the “advanced assumptions” section on the affordability page?
Use it to explore sensitivity: try different income multiples or a different maximum payment share. If you are unsure, leaving the defaults is a reasonable starting point.
Can this affordability calculator tell me what a lender will actually offer?
No. It is a guide only. For a firm decision, you would need to check with lenders or speak to a qualified mortgage adviser.
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