Lenders typically use income multiples (3.5-5x annual income) combined with affordability assessments. They stress test your ability to pay at rates 3% higher than the quoted rate and consider all your income and outgoings to ensure you can comfortably afford repayments.

Lenders consider basic salary, guaranteed overtime, regular bonuses, commission (usually averaged over 2-3 years), pension income, rental income, and benefits. Self-employed income is typically averaged over 2-3 years using SA302s or accounts.

Lenders consider credit commitments (loans, credit cards, hire purchase), childcare costs, maintenance payments, school fees, and living expenses. They may use Office for National Statistics data for typical household spending in your area.

This calculator provides estimates based on typical lending criteria. Your actual borrowing capacity may differ based on your credit score, employment type, deposit size, and individual lender policies. Always speak to a mortgage advisor for personalised advice.

A larger deposit can help you access better rates and may slightly increase borrowing capacity by improving your loan-to-value ratio. However, affordability is primarily based on income and outgoings rather than deposit size.

Bad credit can reduce borrowing capacity and limit available products. Some specialist lenders work with people who have credit issues, but rates may be higher. The earlier you address credit issues, the more options you'll have.