Wondering how much you can borrow for a mortgage? As a rough starting point, most first-time buyers can borrow around 4 to 4.5 times their annual income, based on the lender’s checks on what you can comfortably afford.
A handful of first-time buyer and specialist deals stretch to 5 or 6 times income for those who qualify, though that’s not the norm. On a £50,000 salary, 4.5 times works out at about £225,000; a qualifying 5.5 times deal could take that to around £275,000. Your actual figure comes down to the lender’s checks, your income, your monthly commitments and the size of your deposit. In London, a lot also rides on where you’re buying.
Here’s what lenders really look at, with a simple borrowing table and two worked London examples.
How lenders decide what you can borrow
Lenders start with an income multiple: a cap on how much they’ll lend compared with what you earn. For most people that’s around 4.5 times income, which is a handy benchmark rather than a promise. It’s worth knowing that borrowing at 4.5 times income or more counts as higher-risk lending, and lenders are limited in how much of it they can do, so it isn’t there for everyone. Some buyers are offered less once affordability is checked, and some specialist deals go further.
A few lenders now stretch beyond the standard level for buyers who qualify, often first-time buyers, higher earners, or certain professionals like doctors, accountants and lawyers. A small number of first-time buyer schemes allow borrowing up to 6 times income with as little as a 5% deposit, if you meet the lender’s rules. These bigger multiples come from selected lenders, though, not the whole market.
The multiple is worked out on the income a lender will actually count, which isn’t always your full pay packet. Basic salary is easy to prove. Bonuses, overtime, and commission are trickier: depending on how regularly they occur and the lender’s rules, they might be averaged out, partially counted, or set aside altogether. Self-employed income is looked at differently again. That’s why two lenders can look at the same person and land on very different figures.
Borrowing by income: a quick guide
These figures are for illustration only, not a quote or a promise of what you’ll be offered. The first column shows borrowing at a standard 4.5 times income. The second shows what it would look like with a lender offering 5.5 times, if you qualify.
Single applicant
| Annual income | Standard (4.5x) | With a 5.5x lender (if you qualify) |
| £30,000 | £135,000 | £165,000 |
| £40,000 | £180,000 | £220,000 |
| £50,000 | £225,000 | £275,000 |
| £60,000 | £270,000 | £330,000 |
| £75,000 | £337,500 | £412,500 |
Buying together (combined income)
| Combined income | Standard (4.5x) | With a 5.5x lender (if you qualify) |
| £70,000 | £315,000 | £385,000 |
| £90,000 | £405,000 | £495,000 |
| £110,000 | £495,000 | £605,000 |
| £130,000 | £585,000 | £715,000 |
| £150,000 | £675,000 | £825,000 |
To estimate the most you could spend on a home, add your deposit to the mortgage figure. Just keep some money aside for the other costs of buying, like Stamp Duty (where it applies), legal fees and a survey, so it doesn’t all go into the deposit. As an example, a couple borrowing £495,000 with a £50,000 deposit could look at a home costing up to around £545,000, before those extra costs.
What else affects your figure?
The multiple sets the ceiling, but a few other things decide whether you’ll actually reach it.
A larger deposit lowers your loan-to-value ratio, which is the size of your loan relative to the property’s price. A lower figure here usually opens up more deals and better rates, and with some lenders it can nudge up the maximum multiple too, though that varies from product to product.
Lenders also look closely at your outgoings. Regular commitments like loans, car finance, credit cards and childcare can noticeably reduce what you can borrow. There’s no neat formula that turns each £100 of monthly spending into a fixed drop in your mortgage, so the effect depends on your overall picture.
They’ll also check the mortgage would still be affordable if interest rates went up. The rules here are more relaxed for longer fixed deals of five years or more, but lenders still have to be sure you can comfortably manage the repayments.
A tidy, stable credit history helps too, keeping the widest choice of lenders open to you.
All of which is why an online calculator can only give you a ballpark. Your real figure comes from matching your situation to a lender whose rules suit it.
Buying with someone else
Buying with a partner, friend or family member often means you can borrow more, because lenders can take more than one income into account. How many people and incomes they’ll include varies from lender to lender, though, so joint buying doesn’t work quite the same everywhere. Where two or more incomes are used, the affordability checks look at the household as a whole, and everyone’s debts and commitments count. For plenty of London first-time buyers, teaming up is what makes the sums add up.
What this means in London
London is where the gap between what you can borrow and what you need is widest. The latest UK House Price Index puts the average London home at around £545,000, against roughly £271,000 across the UK. First-time buyers in London paid less on average, at about £465,000 in May 2026. (Source: UK House Price Index, May 2026.)
Borough by borough, prices vary hugely, from the mid-£300,000s in some outer areas to well over £1 million in parts of central London. A few things follow from that if you’re buying your first home here.
Where you buy matters far more than the city-wide average. Your budget stretches much further in the outer boroughs than near the centre, which is why a lot of first-time buyers look further out.
Check your Stamp Duty before you settle on a budget. As a first-time buyer, you pay nothing on the first £300,000 and 5% on the part between £300,001 and £500,000. Above £500,000, the first-time buyer discount disappears completely. The average London first-time buyer paid around £465,000 in May 2026, which sits under that £500,000 line, but homes in several inner-London boroughs go above it, so it’s worth doing the sums before you set your top figure. These thresholds can change, so check the current rules before you buy.
Higher multiples earn their keep in London more than in almost anywhere else. When prices are this high, qualifying for a 5.5 or 6 times deal instead of 4.5 can widen the range of homes you’re able to consider, which is one reason so many buyers here use a broker.
Two worked examples
A single professional.
Priya earns £55,000.
At 4.5 times she could borrow around £247,500; with a lender offering 5.5 times, that rises to about £302,500, an extra £55,000 towards her home. Adding a £30,000 deposit, her illustrative budget moves from roughly £277,500 to £332,500.
A couple buying together.
Tom and Aisha earn £95,000 between them.
At 4.5 times they could borrow around £427,500; at 5.5 times, about £522,500. With a £50,000 deposit, their illustrative budget runs from about £477,500 to £572,500, both above what the average London first-time buyer currently spends.
Both are just illustrations. What you can actually borrow depends on your full circumstances, and the higher multiples are only there if you qualify.
How a whole-of-market broker helps
Go straight to one bank, and you get that bank’s view of your income and that bank’s rules. If they don’t fit your situation, that’s the end of the conversation.
A whole-of-market broker can compare how lots of different lenders would weigh up your income, deposit, commitments and circumstances, then point you towards the ones that suit you. Because AS Financial isn’t tied to a single lender, we look right across the market rather than at one range. Sometimes the difference in lender rules can change what you’re able to borrow by tens of thousands of pounds. The aim, though, is always a mortgage that stays comfortably affordable as well as getting you the home you want.
Frequently asked questions
How much can I borrow as a first-time buyer? Usually around 4 to 4.5 times your income after the lender’s affordability checks, with some deals reaching 5 to 6 times if you qualify. On a £40,000 salary, 4.5 times is about £180,000, rising towards £220,000 with a qualifying 5.5 times deal. Your real figure depends on the lender’s full assessment.
Does the multiple include bonuses and overtime? Sometimes. Basic salary is straightforward, while bonuses, overtime, and commission might be averaged, partially counted, or left out, depending on how regular they are and the lender’s rules. It’s one of the reasons your figure can differ from lender to lender.
Can I borrow 5 or 6 times my income? Some buyers can, if they qualify. These bigger multiples are usually aimed at first-time buyers, higher earners or certain professionals, and always depend on passing the affordability checks. They come from selected lenders and aren’t guaranteed.
How much deposit do I need in London? Most first-time buyer deals start at a 5% to 10% deposit. A bigger deposit lowers your loan-to-value, which usually means more deals to choose from and better rates, and with some lenders a higher multiple too.
Get a figure based on your real income
A multiple only gives you a ballpark. Our advisers look at the full picture: your income, your outgoings and the lenders whose rules fit you, so you know what you could realistically borrow and on what terms.
As first-time buyer mortgage specialists in London, we’ll happily talk you through what’s possible. There’s no upfront adviser fee; any fee is explained in advance and is only payable once we’ve successfully secured your mortgage offer. Get in touch and we’ll do the sums around your situation.
