What lenders look at
Eligibility depends on more than income. Lenders look at your credit history, your job and how long you've been in it, your regular outgoings and debts, the size of your deposit, and the property itself.
Most lenders need a deposit of at least 5% to 10% of the price, and the best rates usually need a bigger one.
Worked example
Someone earning £50,000 with a £30,000 deposit could be offered around £225,000 at 4.5 times income, enough for a property of about £255,000, with a monthly payment of £1,250.62 at 4.5% over 25 years.
Improving your chances
Check your credit report for errors, pay down other debts, register on the electoral roll and save a bigger deposit. An agreement in principle from a lender gives you a firmer idea before you apply.
Eligibility depends on your credit file and outgoings too, so use an agreement in principle to confirm what a lender will offer.
How the result is worked out
The loan is your annual income multiplied by the income multiple you choose. The property price is that loan plus your deposit, and the monthly payment is the repayment on the loan at your rate and term.
It tests income only. Credit history, employment and outgoings are not part of the calculation.
Inputs for the mortgage eligibility calculator
Annual income
Your gross annual income before tax.
Income multiple
4.5 times is common; lenders decide the multiple for each applicant.
Deposit
Your savings towards the purchase.
Interest rate (per year)
The annual interest rate on your mortgage. The rate shown is only an example, so enter the rate from your quote.
Term
How many years you'll repay over. A longer term means paying interest for longer.
CALCULATOR QUESTIONS
Mortgage eligibility calculator questions
Am I eligible for a mortgage?
Lenders look at your income, credit history, outgoings, deposit and the property. This calculator estimates the loan; a lender makes the decision.
How much deposit do I need?
Usually at least 5% to 10% of the property price.
Does my credit score matter?
Yes. A poor credit history can mean being turned down or offered a higher rate.
What is an agreement in principle?
A lender's statement of how much it might lend you, based on a credit check. It's not a guaranteed offer.