How much mortgage can I afford?
Most UK lenders will lend around 4 to 4.5 times your yearly income. On a £40,000 salary that is about £180,000, which costs roughly £1,000 a month at 4.5% over 25 years. Whether that is comfortable depends on your take-home pay and other costs.
A £40,000 salary, worked through.
A lender's maximum is a ceiling, not a target. Many people aim to keep the mortgage payment below roughly 30–35% of take-home pay, so there is room for bills, food, childcare, saving and the occasional surprise.
How much you could borrow on different salaries.
Single applicant, 4.5 × income, repayment mortgage over 25 years. The last column shows the payment if rates were 2 percentage points higher, a useful stress test when your fixed deal ends.
| Salary | Borrow (4.5×) | Payment at 4.5% | Take-home a month | Payment ÷ take-home | Payment at 6.5% |
|---|---|---|---|---|---|
| £25,000 | £112,500 | £625 | £1,793 | 35% | £760 |
| £30,000 | £135,000 | £750 | £2,093 | 36% | £912 |
| £40,000 | £180,000 | £1,000 | £2,693 | 37% | £1,215 |
| £50,000 | £225,000 | £1,251 | £3,293 | 38% | £1,519 |
| £60,000 | £270,000 | £1,501 | £3,780 | 40% | £1,823 |
| £80,000 | £360,000 | £2,001 | £4,746 | 42% | £2,431 |
Notice the pattern: borrowing the full 4.5× puts every salary above the 30–35% comfort zone, and the share rises with income because higher earners lose more of each extra pound to tax. That is why a lender can say “yes” to an amount that would leave a household stretched.
What price can you buy with a £180,000 mortgage?
Your deposit adds to the amount you can borrow. Here is what a £180,000 mortgage buys with different deposits, and the Stamp Duty you would pay in England or Northern Ireland:
| Deposit | Property price | Deposit needed | Stamp Duty (first-time buyer) | Stamp Duty (home mover) |
|---|---|---|---|---|
| 5% | £189,473 | £9,473 | £0 | £1,289 |
| 10% | £200,000 | £20,000 | £0 | £1,500 |
| 15% | £211,764 | £31,764 | £0 | £1,735 |
| 25% | £240,000 | £60,000 | £0 | £2,300 |
A bigger deposit also lowers your loan-to-value (LTV). Rates usually improve at each 5% step, most noticeably below 90%, 85%, 75% and 60% LTV, which can cut the monthly payment further.
It is not just the income multiple.
- Your outgoings: lenders look at bank statements for childcare, loans, car finance, credit cards and regular spending. A £300 a month car payment can reduce the maximum loan by tens of thousands of pounds.
- A stressed rate: lenders check you could still pay if rates rose above your starting rate.
- Credit history: missed payments, high card balances and recent applications can reduce what you are offered.
- Income type: bonuses, overtime and self-employed income are often only partly counted, or averaged over two years.
- Higher multiples: some lenders go to 5 or 5.5 times income for higher earners or certain professions, usually with a bigger deposit.
Budget for more than the deposit.
| Cost | Typical range | When |
|---|---|---|
| Stamp Duty | £0 for many first-time buyers; see table above | On completion |
| Conveyancing (solicitor) | about £1,000–£2,000 | During the purchase |
| Survey | about £400–£1,500 | Before exchange |
| Mortgage arrangement fee | £0–£1,500 | With the application or added to the loan |
| Moving and furnishing | varies widely | First few months |
Once you own the home, set aside money for buildings insurance, maintenance and repairs. A common rule of thumb is around 1% of the property's value a year.
Use the mortgage calculator to try different rates and terms, the affordability calculator to check your whole budget, and the Stamp Duty calculator for the tax.
Mortgage affordability FAQs
How much can I borrow on a £30,000 salary?
At 4.5 times income, about £135,000. At 4.5% over 25 years that costs £750 a month, against take-home pay of about £2,093.
Does a longer term help?
It lowers the payment but costs more overall. £180,000 at 4.5% costs £1,000 a month over 25 years (£120,150 interest) or £852 over 35 years (£177,782 interest).
Should I use gross or take-home pay?
Lenders use gross income for the multiple. For your own budget, take-home pay is what matters, because that is the money you actually have each month.
Can WorthChex tell me what a lender will offer?
No. Each lender has its own criteria. Our figures show what a loan would cost so you can decide what is comfortable before you speak to a lender or broker.
MoneyHelper: how much can I borrow? · GOV.UK Stamp Duty rates. Figures are worked examples for planning, not financial advice.