Maximum Borrowing Calculator
Calculate the maximum mortgage amount you can borrow based on your income, expenses, and current UK lending criteria including stress testing.
Financial Details
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Maximum Borrowing Results
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Affordability Breakdown
Frequently Asked Questions
Common questions about maximum borrowing calculations
How do lenders calculate maximum borrowing?
Lenders use both income multiples (typically 4-4.5x annual income) and affordability assessments that consider your income, expenses, and financial commitments to determine the maximum you can borrow.
What is stress testing?
Stress testing involves calculating whether you could still afford mortgage payments if interest rates increased by 2-3%. This ensures you can manage payments even if rates rise.
How do existing debts affect borrowing?
Existing credit commitments (loans, credit cards, etc.) reduce your available income for mortgage payments. Lenders typically want your total debt payments to be no more than 40-45% of your gross income.
Can I borrow more with a larger deposit?
While a larger deposit doesn't directly increase your borrowing capacity, it reduces the loan-to-value ratio, potentially giving you access to better rates and terms from more lenders.