Mortgage Affordability Calculator UK 2026

Use GlobalCalqulate’s free UK Mortgage Affordability Calculator (2026) to estimate how much mortgage you can afford and how much you may be able to borrow based on income, deposit, monthly expenses, and interest rate. Model lender-style affordability checks using income multiples, stress test rates, and realistic cost of living. Ideal for first-time buyers, home movers, and buy-to-let planning across England, Scotland, Wales and Northern Ireland.

Last revised 3 September 2026

By Team GlobalCalqulate · About our editorial standards

Household Income

Primary Annual Income

Additional Household Income

Employment Type

How this estimate was calculated

First-time buyer relief has been applied to the transaction tax.
Affordability starts from take-home pay, not gross salary: on £60,000 of income, £14,643 goes to income tax and National Insurance before any lender assesses what you can service. Most affordability calculators apply a multiple to the gross figure and never show you this step.
Your limit here is the income multiple (4.50x), not your budget — your take-home pay comfortably covers the payments, so borrowing more would depend on finding a lender willing to lend above 4.50x income.
Lenders substitute their own minimum essential-expenditure figures when a declared living cost looks too low for the household, so a real offer is often below the budget-based limit shown here.
Borrowing is capped at the lower of the income-multiple limit and the budget-based limit, sized at your stress test rate.
The estimated monthly payment shown is what you'd actually pay today, on the final borrowing amount, at your current rate — not the stress rate used to size the loan.

Financial Disclaimer: This result is an educational estimate produced by applying published rates and thresholds to the figures you entered. It is not a tax determination: your actual liability depends on circumstances this calculator does not collect. Confirm your position with the relevant tax authority or a qualified accountant before acting on it. Full disclaimer.

Sources & methodology

Formula:: Income-multiple limit
Reference:: Financial Conduct Authority
Rates for:: 2026/27
Figures verified:: August 2026 — checked against the primary source above
Scheduled re-verification:: April 2027

Calculation type: Planning estimate. Uses 2026/27 rates and thresholds. Figures are taken from Financial Conduct Authority and HM Revenue & Customs and Revenue Scotland and Welsh Government and Scottish Government and mygov.scot (Scottish Government) — see sources below.

Reviewed by Team GlobalCalqulate — Verifies each figure against the issuing authority's published source · Checked 7 August 2026

Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.

Formula & methodology

Formula used

Income-multiple limit

maxBorrowIncome = (annualIncome + additionalIncome) × incomeMultiple

A simple cap: total household income times your chosen multiple (commonly 4-4.5×, sometimes higher for larger deposits or specific professions).

Take-home pay

netAnnualIncome = householdIncome − incomeTax(householdIncome, region) − employeeNI(householdIncome)

Affordability is assessed on what actually reaches your bank account, so income tax and National Insurance are deducted first using the same HMRC figures as this site's income tax calculator. Most affordability calculators apply a multiple to your gross salary and never show this step.

Origin: Income Tax rates and Personal Allowance (GOV.UK) and Class 1 employee National Insurance rates for the current tax year.

Monthly income available for a mortgage

affordableMonthlyPayment = max(netMonthlyIncome − (expenses + debt + childcare + credit), 0)

Your declared commitments are subtracted from take-home pay. What is left is the residual a lender treats as available to service the mortgage. No further percentage haircut is applied — an unsourced 'safe share of income' figure is exactly what makes other calculators' answers impossible to check.

Origin: FCA MCOB 11.6 requires lenders to assess affordability from the borrower's net income and committed expenditure.

Stress-tested budget limit

maxBorrowBudget = affordableMonthlyPayment annuitised at the STRESS rate over the term

The loan size that affordable monthly payment would support if rates rose to your stress test rate — not your current deal rate. This is why the borrowing limit can be noticeably lower than a simple income-multiple estimate suggests.

Origin: FCA MCOB 11.6 requires lenders to assess whether a borrower could still afford payments after a future interest rate rise, alongside their broader affordability assessment.

Final borrowing and payment shown

The lower of the income-multiple and stress-tested budget limits is your estimated maximum borrowing. The monthly payment shown alongside it is calculated at your CURRENT rate on that borrowing amount — what you'd actually pay today, not the stress-test figure used to size the loan.

Step-by-step calculation

1. Total household income
Primary and additional income are combined for the income-multiple limit.
2. Deduct income tax and National Insurance
Household income is converted to take-home pay using the current HMRC rates, bands and Personal Allowance for your region (Scottish rates apply where the region is Scotland).
3. Net off monthly commitments
Living expenses, debt repayments, childcare and credit commitments are all subtracted from monthly take-home pay.
4. Size the loan at the stress rate
The remaining monthly budget is converted to a loan amount using your stress test rate, not your current rate.
5. Take the lower limit
Final borrowing is the smaller of the income-multiple cap and the stress-tested budget limit.
6. Show today's payment
The same borrowing amount is re-annuitised at your current rate to show what you'd actually pay each month.

Limitations

This is a simplified, transparent proxy for affordability — not a lender's actual underwriting model. Real lenders use proprietary criteria, credit scoring and product-specific rules that this calculator cannot replicate.
Take-home pay is calculated from salary alone: it assumes NI category A and no salary sacrifice, pension contributions, student loan repayments or taxable benefits, each of which would change your real net pay.
No prudence buffer is applied to your residual income. Lenders substitute their own minimum essential-expenditure figures when declared living costs look low for the household size, so a real offer is often lower than the budget-based limit here.
Self-employed and contractor income is often assessed differently by lenders (e.g. averaged over 2-3 years' accounts), which this calculator does not model — enter your usable annual figure.
Product fees, early repayment charges, buy-to-let rental-cover tests and credit score are not modelled.
This is an estimate for planning purposes only, not a mortgage offer or agreement in principle. Speak to a mortgage broker or lender for an actual affordability assessment.

This page is educational. It applies a standard formula to the figures you enter and shows the arithmetic behind the result. It is an estimate, not an offer, a quotation or financial advice: real costs depend on the provider's pricing, fees and underwriting, and on circumstances this calculator does not collect.

Sources & references

MCOB 11.6 Responsible lending and financing (affordability assessment) — Financial Conduct Authority
Income Tax rates and Personal Allowances — HM Revenue & Customs
National Insurance rates and categories — HM Revenue & Customs
Stamp Duty Land Tax: residential property rates — HM Revenue & Customs
LBTT residential property rates and bands — Revenue Scotland
Additional Dwelling Supplement (ADS) — Revenue Scotland
Land Transaction Tax rates and bands — Welsh Government
Income Tax rates and allowances for current and past years — HM Revenue & Customs
Rates and thresholds for employers 2026 to 2027 — HM Revenue & Customs
Self-employed National Insurance rates — HM Revenue & Customs
Scottish Income Tax rates and bands: 2026 to 2027 — Scottish Government
Income Tax in Scotland: current rates — mygov.scot (Scottish Government)

Help & FAQs

Frequently Asked Questions

Clear answers to common questions to help you use this calculator confidently.

Are property taxes and insurance included?

Tap to view the answer

The calculator may include estimated running costs if entered. If not provided, results may be simplified. Actual housing costs may vary.

What happens if I increase my deposit?

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A higher deposit generally increases the property value you may be able to afford. You can adjust this input to explore scenarios. Results update accordingly.

How does changing the interest rate affect results?

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Higher interest rates usually reduce estimated affordability, while lower rates may increase it. You can modify the rate to explore different scenarios. The calculator shows indicative outcomes.

What if I have existing loans or credit card debt?

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Adding monthly debt payments will typically reduce your estimated affordability. This reflects a higher financial commitment. You can update these values to compare scenarios.

What if I choose a longer mortgage term?

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A longer term may increase the estimated affordable amount due to lower monthly payments. However, total interest paid over time may be higher. Results are indicative.

Need more help? Contact support or email globalcalqulate@gmail.com

We typically reply within 24–48 hours.

More United Kingdom calculators

How to Use This Calculator

Enter household income

Provide primary annual income plus any additional household income — both are combined for the income-multiple limit.

Add deposit and monthly commitments

Enter your available deposit, then living expenses, debt repayments, childcare costs and credit commitments — all four reduce how much monthly payment you can afford.

Set mortgage and stress-test assumptions

Choose your income multiple, current mortgage rate, stress test rate and term. Borrowing is sized at the stress rate, then the payment is shown at your current rate.

Review affordability

See the lower of the income-multiple and stress-tested budget limits, your estimated property price, and loan-to-value.

Understanding Your Results

Max borrowing (income multiple)
Combined household income × your chosen income multiple (default 4.5×).
Affordable monthly payment (after commitments)
35% of gross monthly income, minus living expenses, debt repayments, childcare and credit commitments.
Max borrowing (stress-tested budget)
The loan that affordable monthly payment supports at your stress test rate, not your current rate.
Estimated monthly payment at current rate
What you'd actually pay each month on the final borrowing amount, at today's rate rather than the stress rate.
Estimated property price
The lower of the two borrowing limits, plus your deposit.
Estimated LTV
Loan-to-value based on property price and deposit.

Understanding Mortgage Affordability

Income multiple vs affordability checks

An income multiple (e.g. 4.5× salary) is a quick headline figure, but it is only the first of two limits a lender applies. The second, usually more restrictive, limit is a full affordability check: what monthly payment your income can support once your actual living costs, debts and commitments are accounted for. Whichever limit is lower is what you can actually borrow — this calculator applies both and takes the lower.

Why stress testing matters

Since the FCA's mortgage market rules (MCOB 11.6), lenders must check you could still afford your payments if interest rates rose after you take out the loan — typically several percentage points above your actual deal rate. This calculator sizes your maximum borrowing at your chosen stress rate, then separately shows what you'd actually pay each month at today's rate on that same loan. The two figures are usually different, and that gap is the point: it shows how much headroom you'd have if rates rose.

What counts as a monthly commitment

Lenders look beyond headline living expenses to existing debt repayments, childcare costs and credit card or finance commitments — all of these reduce how much is left over for a mortgage payment, and this calculator subtracts all four from your affordability budget, not just general expenses.

Why deposit matters

A bigger deposit does two things: it directly reduces the loan-to-value (LTV) of the property, and lower-LTV mortgages typically come with better interest rates from lenders. It does not change your income-multiple or affordability limits directly, but a smaller loan at a better rate makes the same property more affordable.

Formula & methodology

Formula used

Income-multiple limit

maxBorrowIncome = (annualIncome + additionalIncome) × incomeMultiple

A simple cap: total household income times your chosen multiple (commonly 4-4.5×, sometimes higher for larger deposits or specific professions).

Take-home pay

netAnnualIncome = householdIncome − incomeTax(householdIncome, region) − employeeNI(householdIncome)

Origin: Income Tax rates and Personal Allowance (GOV.UK) and Class 1 employee National Insurance rates for the current tax year.

Monthly income available for a mortgage

affordableMonthlyPayment = max(netMonthlyIncome − (expenses + debt + childcare + credit), 0)

Origin: FCA MCOB 11.6 requires lenders to assess affordability from the borrower's net income and committed expenditure.

Stress-tested budget limit

maxBorrowBudget = affordableMonthlyPayment annuitised at the STRESS rate over the term

Origin: FCA MCOB 11.6 requires lenders to assess whether a borrower could still afford payments after a future interest rate rise, alongside their broader affordability assessment.

Final borrowing and payment shown

Step-by-step calculation

1. Total household income
Primary and additional income are combined for the income-multiple limit.
2. Deduct income tax and National Insurance
Household income is converted to take-home pay using the current HMRC rates, bands and Personal Allowance for your region (Scottish rates apply where the region is Scotland).
3. Net off monthly commitments
Living expenses, debt repayments, childcare and credit commitments are all subtracted from monthly take-home pay.
4. Size the loan at the stress rate
The remaining monthly budget is converted to a loan amount using your stress test rate, not your current rate.
5. Take the lower limit
Final borrowing is the smaller of the income-multiple cap and the stress-tested budget limit.
6. Show today's payment
The same borrowing amount is re-annuitised at your current rate to show what you'd actually pay each month.

Limitations

This is a simplified, transparent proxy for affordability — not a lender's actual underwriting model. Real lenders use proprietary criteria, credit scoring and product-specific rules that this calculator cannot replicate.
Take-home pay is calculated from salary alone: it assumes NI category A and no salary sacrifice, pension contributions, student loan repayments or taxable benefits, each of which would change your real net pay.
No prudence buffer is applied to your residual income. Lenders substitute their own minimum essential-expenditure figures when declared living costs look low for the household size, so a real offer is often lower than the budget-based limit here.
Self-employed and contractor income is often assessed differently by lenders (e.g. averaged over 2-3 years' accounts), which this calculator does not model — enter your usable annual figure.
Product fees, early repayment charges, buy-to-let rental-cover tests and credit score are not modelled.
This is an estimate for planning purposes only, not a mortgage offer or agreement in principle. Speak to a mortgage broker or lender for an actual affordability assessment.

Calculator inputs

Household Income

Deposit & Purchase Details3 options

Monthly Commitments4 options

Lending Assumptions4 options

Your results

Sources & methodology

Formula & methodology

Formula used

Income-multiple limit

Take-home pay

Monthly income available for a mortgage

Stress-tested budget limit

Final borrowing and payment shown

Step-by-step calculation

Limitations

Sources & references

Are property taxes and insurance included?

What happens if I increase my deposit?

How does changing the interest rate affect results?

What if I have existing loans or credit card debt?

What if I choose a longer mortgage term?

Related calculators

More United Kingdom calculators

Calculator inputs

Household Income

Deposit & Purchase Details3 options

Monthly Commitments4 options

Lending Assumptions4 options

Your results

Sources & methodology

How to Use This Calculator

Example: £60,000 income, £30,000 deposit

Understanding Your Results

Key Tips

Understanding Mortgage Affordability

Income multiple vs affordability checks

Why stress testing matters

What counts as a monthly commitment

Why deposit matters

Formula & methodology

Formula used

Income-multiple limit

Take-home pay

Monthly income available for a mortgage

Stress-tested budget limit

Final borrowing and payment shown

Step-by-step calculation

Limitations

Sources & references

How to Use This Calculator

Example: £60,000 income, £30,000 deposit

Understanding Your Results

Key Tips

Understanding Mortgage Affordability

Income multiple vs affordability checks

Why stress testing matters

What counts as a monthly commitment

Why deposit matters