UK Mortgage Affordability Calculator

UK mortgage affordability is assessed by lenders under Financial Conduct Authority (FCA) responsible lending rules introduced by the Mortgage Market Review (MMR) 2014. Lenders apply income multiples of 4–5.5× gross annual income depending on credit profile, existing debts, and employment type.
The Bank of England base rate is currently 3.75% (as of December 2025). Average 2-year fixed rates are ~4.3% and 5-year fixed ~4.2% (May 2026). The Standard Variable Rate (SVR) is typically ~6.5%. Lenders stress-test affordability at the mortgage rate plus 3% (FCA guidance) to ensure payments remain manageable if rates rise.
Loan-to-value (LTV) below 80% typically unlocks better rates. Minimum deposit is usually 5–10%. Monthly debt commitments (loans, credit cards, car finance) reduce borrowing capacity significantly — roughly £40,000–£50,000 per £300/month of debt at standard assessment rates.
Self-employed applicants typically need 2–3 years of accounts. Lenders may only count 50% of bonus, overtime, or commission income. This calculator does not include Stamp Duty, solicitor fees, survey costs, or buildings insurance.
Need expert advice? Contact a Chartered Accountant at Aeenx for formal mortgage and property finance advice.
This calculator is for informational purposes only and does not constitute financial advice. Always consult a qualified mortgage broker or adviser regulated by the FCA. Your home may be repossessed if you do not keep up repayments on a mortgage secured against it.