Mortgage Affordability — How Much Can I Borrow?

Quick Answer

Mortgage Affordability — How Much Can I Borrow?: Use our mortgage calculator and read our full hub guide to understand your options. Always compare rates using a whole-of-market broker.

Key takeaways
  • Get a soft-search decision in principle before house-hunting — it costs nothing and reveals problems early
  • Loan-to-value bands (95/90/85/80/75%) drive pricing — check the nearest band boundary
  • Whole-of-market brokers see deals comparison sites don't carry, especially for non-standard income
  • Benchmark total cost over the fixed period — rate plus fees, not headline rate alone

The Details That Decide Outcomes

Decision in principle first, property search second. It's a soft-search estimate of your borrowing power that estate agents increasingly require before viewings, and it surfaces problems months before they can derail a purchase.

Timing your remortgage matters more than most borrowers realise. Most lenders let you lock a deal half a year ahead — if rates rise you're protected, and many lenders let you switch to a cheaper deal before it starts.

Affordability rules changed materially after the 2022–23 rate cycle. Lenders now stress-test your payments at a notional higher rate, and your outgoings matter as much as income. Clearing a £300/month car payment can add £15–20k to a mortgage offer.

Mortgage Affordability — How Much Can I Borrow?

This guide explains everything you need to know about mortgage affordability in the UK. We cover how it works, who qualifies, and what to watch out for.

Key Points

  • Compare the overall cost of any mortgage, not just the headline rate
  • Consider arrangement fees, valuation fees, and early repayment charges
  • A whole-of-market broker can access deals not available direct
  • Always check the lender is FCA authorised ↗

Current Mortgage Rates (2025)

ProductRate (from)LTV
2-year fixed4.1% APR60% LTV
5-year fixed4.3% APR60% LTV
2-year tracker4.8% APR75% LTV
10-year fixed4.6% APR60% LTV

Rates are indicative and change daily. Check lenders directly for current offers.

Trusted Resources

Use Mortgage Calculator →

Expert Tip: Get quotes from at least 3 sources — your bank, a comparison site, and an independent mortgage broker — before choosing a deal. The difference between the best and worst rate on a £200,000 mortgage can be thousands of pounds over the term.

Frequently Asked Questions

Expect roughly £2,000–£4,000 covering valuation, legal work, searches and any lender arrangement fee. Stamp duty applies above the current threshold.

Yes, though your options narrow. Specialist lenders accept defaults and CCJs older than 12 months, typically at higher rates. Rebuilding your score for 6–12 months first often saves thousands.

You move to the lender's standard variable rate, which is almost always worse value. Most lenders let you lock a new deal up to 6 months ahead.

Most fixed deals allow 10% overpayment per year without penalty. Overpaying early in the term saves the most interest.

It depends on your appetite for rate risk. A 5-year fix buys certainty; a 2-year fix costs less if rates fall. Check the total cost including fees, not just the headline rate.

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