Mortgage Borrowing Calculator
“How much can I borrow?” is usually the first question anyone asks before house hunting. Our mortgage borrowing calculator answers it from a different angle to a standard affordability tool — it shows how your maximum property price shifts as your deposit grows, from a 5% deposit right up to a 40% deposit, so you can see exactly where bigger savings start paying off.
Mortgage Borrowing Calculator
See your maximum borrowing power at different deposit levels, from a 5% deposit up to 40%.
Two Limits, Not One
Every mortgage application is capped by two separate constraints, and the lower of the two wins. The first is your income multiple — typically 4 to 4.5 times your annual income (occasionally 5x). The second is your deposit, which determines the maximum property price at a given LTV band. If your income supports a £250,000 loan but you only have a £15,000 deposit, you are deposit-limited at a 95% LTV, not income-limited — and the property price you can actually reach is far lower than the income multiple alone would suggest.
Why the LTV Bands Matter So Much
This calculator shows your maximum price at six common LTV thresholds: 95%, 90%, 85%, 80%, 75% and 60%. Each step down in LTV typically needs a meaningfully bigger deposit, but also usually unlocks better rates and more lender choice. At 95% LTV, only a limited number of lenders compete, often at higher rates. By 90% and 85%, competition increases noticeably. By 75% and 60%, you are in the territory of the very best rates on the market. Seeing all six bands side by side makes it obvious whether saving a little more, or waiting a few extra months, could meaningfully change your options.
A Worked Example
Someone earning £38,000 with £16,000 saved might see a maximum income-based loan of roughly £171,000 (at 4.5x). At 95% LTV, however, their £16,000 deposit only supports a property price of around £320,000 in deposit terms — well above the income cap — meaning here they are income-limited, not deposit-limited, and £171,000 plus their deposit gives a realistic ceiling around £187,000. Change the numbers slightly — say a £10,000 deposit instead — and the deposit constraint can flip to being the binding one at the highest LTV bands. This interplay is exactly why it is worth checking both angles rather than relying on a single income-multiple sum.
Turning This Into a House-Hunting Budget
Once you have a realistic borrowing figure, subtract the costs you will need in cash on top: Stamp Duty (use our Stamp Duty Calculator), legal fees (typically £800–£1,500), survey costs, and moving costs. Many first-time buyers underestimate this “extra cash needed” figure and end up house hunting at a price point they cannot actually complete on.
Government Schemes Worth Checking
Several UK schemes exist specifically to help buyers with smaller deposits, and it is worth checking your eligibility before assuming the standard LTV bands are your only option. Mortgage guarantee schemes, where the government underwrites part of the lender’s risk on 95% LTV lending, have periodically been available to widen access to low-deposit mortgages. Shared ownership lets you buy a percentage of a property (often 25–75%) and pay rent on the remainder, reducing the deposit and mortgage needed upfront, with the option to “staircase” up to full ownership over time. Regional and employer-specific schemes also exist in some areas, so it is worth a quick search for anything relevant to your circumstances before finalising your budget.
Combining one of these schemes with the LTV comparison this calculator provides can materially change your realistic house-hunting budget, sometimes bringing forward a purchase by several years compared with saving for a standard deposit alone.
Frequently Asked Questions
Why does the calculator sometimes say I’m “limited by income” even with a small deposit?
Because a small deposit at a high LTV (like 95%) can still support a fairly large property price in pure loan-to-value terms — the income multiple is often the tighter constraint for buyers earlier in their careers.
Is 4.5x income always available?
No — it depends on the lender, your income level, employment type, credit history and sometimes profession. Some lenders reserve their highest multiples for higher earners or specific occupations such as some professional and public sector roles.
Can I combine two incomes for a joint mortgage?
Yes, most joint applications combine both applicants’ incomes before applying the multiple, though a small number of lenders weight a lower second income differently.
Does this include Stamp Duty in the property price shown?
No — the maximum price shown is what your loan plus deposit could cover. Stamp Duty and other buying costs need to be budgeted for separately, in cash.