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How Much Can You Borrow? Mortgage Affordability in 2026

2nd February 2026

One of the most common questions for anyone considering buying a home or remortgaging is: how much can I borrow? The answer depends on a number of factors that lenders assess carefully, and understanding how the process works can help you approach an application with realistic expectations.

How Lenders Calculate Affordability

Since the Mortgage Market Review in 2014, lenders are required to conduct a thorough affordability assessment for every mortgage application. This means looking beyond a simple income multiple and examining your actual financial position in detail.

Lenders will typically look at your gross annual income from employment, self-employment, benefits, rental income and other sources. They will also examine your regular outgoings: existing debt repayments, childcare costs, pension contributions, insurance premiums and general household expenditure. The difference between what comes in and what goes out determines how much mortgage payment you can afford.

The Stress Test

Lenders do not simply calculate affordability at the rate they are offering you. They apply a stress test — typically assessing whether you could afford repayments at a rate several percentage points above the product rate. This is designed to ensure you would not default if rates were to rise significantly during the mortgage term.

The level of stress testing varies between lenders. For fixed rate mortgages, most lenders will test affordability at the product rate plus a buffer, or at their own standard variable rate, whichever is higher. This means that even at current product rates, the affordability calculation may be based on a rate of 7% or more.

Income Multiples

Most lenders cap the mortgage at a multiple of your annual income. For many years the standard was around 4x to 4.5x income. Some lenders, particularly for professional mortgages or higher earners, will lend at 5x or even 5.5x income. The Financial Conduct Authority limits lenders from offering mortgages above 4.5x income to more than 15% of their total lending, which is a constraint on how widely high income multiples can be offered.

Improving Your Borrowing Capacity

If your affordability calculation comes out lower than you need, there are steps you can take. Reducing existing debt — credit cards, personal loans, car finance — before applying can increase the amount available to you. A larger deposit reduces the loan required and may also give you access to lower interest rates, improving affordability further. Some lenders look more favourably on certain income sources, so finding the right lender for your profile can make a meaningful difference.

A mortgage broker can assess your income and expenditure and identify which lenders are most likely to meet your requirements. To find out how much you could borrow, please submit an online enquiry or call us on 0800 310 1340.

Speak to a Mortgage Adviser

Our advisers can help you find the right mortgage. Please submit an online enquiry or call 0800 310 1340.

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.