How Much Can You Borrow vs How Much Should You Borrow?

Banks tell you how much they'll lend. This tells you how much you should borrow — based on your actual income, commitments and life, not a lender's formula.

The average buyer is offered significantly more than they should comfortably borrow

Your situation

Everything you have — deposit and buying costs all come from this

Target property budget

How much are you looking to spend? £300,000
£100k£300k£500k£700k£900k

Your income

Auto-enrolment minimum is 5%
Calculated take-home: —/mo

Monthly committed outgoings these reduce what's available for housing

Check your payslip — only enter if you're currently repaying. The amount matters, not the plan.
Don't include rent — that's what we're replacing

Your financial targets these also reduce what's available for housing

What you want to keep saving each month after paying the mortgage — this is subtracted from what's available for housing

Mortgage assumptions

Use your expected rate — not the best advertised rate
Your funds — the reality check
Available funds
—
Buying costs
—
Real deposit
—
—
Loan to value
Deposit: — LTV: —
—
For housing costs to stay within the recommended range
—
Comfortable to manageable mortgage (25–33% of take-home)
—
A bank may offer you up to
—
Based on 4.5x gross income — lenders may offer more
The gap
—
—
How your budget breaks down
Total take-home—
Committed outgoings—
Available for housing—
Comfort zones — monthly mortgage payment
Comfortable
—
— property
Manageable
—
— property
Stretched
—
— property
25% / 33% / 40% of take-home, capped at what's left after outgoings and your savings target. Sources: HomeOwners Alliance, English Housing Survey 2024–25.
What's left after the mortgage — for bills, food & life
Current rate
—
—
Rate +1%
—
—
Rate +2%
—
—
Remaining after mortgage, outgoings and savings target. This is what you'd have for everything else.
What this means Enter your details above.
For illustrative purposes only. Not financial advice.
Speak to an independent mortgage adviser before applying.