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  • Writer's pictureScott Mackey

How much can I borrow on a mortgage?

Updated: Jan 12, 2023

When it comes to taking out a mortgage, one of the most important factors to consider is how much you can afford to borrow. Lenders will have their own criteria for determining how much they are willing to lend, but there are also some general guidelines that can help you determine how much you can afford.

  1. Income: Lenders will typically look at your income and employment status to determine how much you can afford to borrow. They will want to see that you have a steady income and that your income is sufficient to cover your mortgage payments.

  2. Debt-to-income ratio: Lenders will also look at your debt-to-income ratio, which is a measure of how much of your income is being used to service debt. Most lenders will want to see that your debt-to-income ratio is no more than 43%.

  3. Credit Score: Lenders will also take into account your credit score when determining how much you can borrow. A good credit score can increase your chances of being approved for a larger loan.

  4. Savings: Having a good savings history and a down payment of at least 5% to 10% of the property value will make it more likely that a lender will approve you for a larger mortgage.

  5. Lenders' Affordability Calculator: Many lenders provide an affordability calculator on their website, these calculator take into account income, expenses, and debts, to give you an idea of how much you can afford.

  6. Professional Advice: Consider consulting with a financial advisor or a mortgage broker to help you determine how much you can afford to borrow. They can take your financial situation into account and help you find a mortgage that's right for you.

It's important to remember that just because you are approved for a certain amount, it doesn't mean that you should borrow the full amount. It's important to keep your monthly mortgage payments affordable and within your budget. Additionally, it's important to consider other expenses such as home repairs, insurance and taxes, as well as saving for retirement, and other financial goals.


In summary, how much you can afford to borrow on a mortgage will depend on several factors, including your income, debt-to-income ratio, credit score, savings, and lender's criteria. Lenders' affordability calculators, professional advice and budgeting your expenses can help you determine how much you can afford to borrow. It's important to remember that just because you are approved for a certain amount, it doesn't mean that you should borrow the full amount, and it's important to consider all other expenses and long-term financial goals.


If you would like to talk over this subject or any other with us, please feel free to get in touch windsor@legacy-finance.co.uk

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