Useful next calculations
Rates and sources
Standard amortisation formulas used across UK lenders. Interest rates move daily — confirm with your lender or broker.
Source: Bank of England — Statistics. Check the linked guidance and any live quote before acting.
When to use this calculator
- Before comparing mortgage products, brokers or repayment types.
- When you want to test how a different deposit, rate or term changes the payment.
- When you need a quick estimate before using a formal illustration or agreement in principle.
- When you are stress-testing your budget against a higher rate.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Annual Household Income (£) | £60,000 |
| Monthly Debt Payments (£) | £300 |
| Deposit Available (£) | £30,000 |
| Mortgage Interest Rate (%) | 4.5% |
For those figures the calculator returns:
- Max Home Price: £227,901.35
- Max Mortgage: £197,901.35
- Deposit: £30,000.00
- Max Monthly Payment: £1,100.00
- Income Multiple: 3.30
Method & assumptions
This calculator estimates how much you may be able to borrow and the price range of homes potentially within reach, based on standard UK mortgage affordability rules. It applies a common income multiple — typically 4 to 4.5 times gross annual income — and adds your stated deposit to arrive at an indicative maximum purchase price. The result is a guide only; your actual borrowing limit will depend on a full lender affordability assessment that considers your credit history, monthly outgoings, number of dependants, and the specific mortgage product you apply for. Interest rates used for illustrative monthly payment figures do not represent a quote. Always speak to a qualified, financial regulator-authorised mortgage adviser before making any property purchase decisions.
Common mistakes
- Mixing up loan amount and property value, which can distort affordability and LTV.
- Using a headline rate but forgetting fees, insurance, taxes or repayment type.
- Testing only one term length instead of comparing the payment and total cost together.
- Forgetting that a repayment mortgage and an interest-only mortgage produce very different monthly figures.
What to do next
- Run a second scenario with a higher rate or shorter term so you can see the downside clearly.
- Compare the result with an affordability or overpayment calculator before applying.
- Note the monthly payment and total interest for your strongest scenarios before you speak to a broker.
- Check whether a modest overpayment would reduce total interest — use the overpayment calculator next.