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FRIDAY FAQ: How much could I borrow based on my income level?

Every Friday we aim to post an answer to a FAQ about mortgages, tax, investments, money matters, business or retirement. You can have your say too. Send an email with your FAQ to

This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

Q. How much could I borrow based on my income level?

Answer:  It’s important to understand that how much you may be able to borrow will depend on more than just your income. Lenders evaluate your income, your outgoings, your credit score, and the loan-to-value amount (how much you want to borrow in relation to the property’s value.)

However, to get a rough estimate based solely on your income level, it is helpful to know that lenders can use a multiple of up to 4.5 times your income to determine your mortgage amount.


Dr. Jones’ annual salary is £45,000 before tax.

Using a conservative 3.5x rate, Dr. Jones would be able to borrow £157,500.

Using the maximum 4.5x rate, Dr. Jones would be able to borrow £202,500.

In the case of two borrowers, a lender may use the lower end of the multiple spectrum or the second borrower’s income would be added after the multiple has been calculated.


Dr. Smith and Dr. Jones both earn £45,000 before tax.

If a lender chooses to use a rate of 3x both of their income combined, they would be able to borrow £270,000.

Alternatively, the lender may use the rate of 4x Dr. Smith’s income of £45,000 (£180,000) and then add Dr. Jones’ income (£45,000) to get a loan total of £225,000.

Next steps

For a quick and easy way to calculate how much you can afford, check out our Mortgage Affordability Calculator.

Also, speak to one of our independent mortgage advisors who can help you save time and find the most affordable mortgage to suit your needs.

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