Answer 4 questions — see how much you can borrow and your full monthly cost
The standard mortgage for owner-occupiers. Lenders use an income multiple of 4–4.5× your gross salary (some offer up to 5.5× for higher earners). The minimum deposit is typically 5%, though 25%+ unlocks significantly lower rates. Most deals are 2- or 5-year fixes, after which you should remortgage to avoid the lender's Standard Variable Rate (SVR).
For landlords purchasing property to rent out. A minimum 25% deposit is required by most lenders. Affordability is assessed on rental income coverage — the monthly rent must typically be 125–145% of the interest-only mortgage payment. Personal income is a secondary check. BTL rates are usually 0.5–1% higher than residential.
A government-backed scheme where you buy between 10% and 75% of a property and pay subsidised rent on the remaining share to a housing association. You only need a mortgage for your share, so the loan and deposit required are much smaller. Monthly costs include mortgage repayments plus rent on the unowned share (typically 2.75%/yr of its value) and service charges. You can staircase (buy more shares) until you own 100%.
The Welsh Government lends up to 20% of a new-build property's value (on homes up to £300,000), interest-free for the first 5 years. With a 5% deposit and the 20% equity loan, you only need a mortgage for the remaining 75%. England's scheme closed in March 2023; check the Welsh Government website for current availability.
| Lender | Typical Multiple | Notes |
|---|---|---|
| High Street (standard) | 4.0–4.5× | Most borrowers |
| High Street (key worker / FTB) | 5.0–5.5× | NHS, teachers, police |
| High Street (income > £75k) | 5.0–5.5× | Professional mortgages |
| Building Society | 4.5–5.0× | Often flexible on income types |
| Buy-to-Let | Rental coverage | Rent ≥ 125–145% of interest payment |
| Region | Avg Annual (Band D) | Monthly Est. |
|---|---|---|
| London | £1,855 | £155 |
| South East | £2,097 | £175 |
| South West | £2,163 | £180 |
| East of England | £2,176 | £181 |
| East Midlands | £2,173 | £181 |
| West Midlands | £2,183 | £182 |
| Yorkshire & Humber | £2,178 | £182 |
| North West | £2,218 | £185 |
| North East | £2,307 | £192 |
| Wales | £1,955 | £163 |
| Scotland | £1,528 | £127 |
| Northern Ireland | £950 | £79 |
An Agreement in Principle (AIP) — also called a Decision in Principle or Mortgage in Principle — is a conditional statement from a lender confirming they would, in principle, lend you a certain amount. Estate agents typically require one before accepting an offer.
Your rate is fixed for an initial period (typically 2 or 5 years). 2-year fixes are currently around 4.5–5.0% and 5-year fixes around 4.2–4.75% at 75% LTV. After the fix you revert to the SVR unless you remortgage.
Tracks the Bank of England base rate plus a margin. Payments change when the base rate changes. Usually has no early repayment charges.
Lenders must assess whether you can still afford the mortgage if rates rise by ~3%. If current rates are 4.75%, lenders stress-test at ~7.75%. This often reduces the maximum loan below the raw income multiple.