Mortgage borrowing calculatorIf you're hoping to take out a mortgage, our borrowing calculator will give you a rough idea of how much a lender might offer you based on how much you earn and whether you're buying with anyone else. Show
How do lenders decide how much I can borrow?Your salary will have a big impact on the amount you can borrow for a mortgage. Usually, banks and building societies will offer up to four-and-a-half times the annual income of you and anyone you are buying with. This means if you're buying alone and earn £30,000 a year, you could be offered up to £135,000. There are exceptions to this, however. Some banks offer bigger home loans to borrowers who have higher earnings, bigger deposits, or work in specific professions. If you qualify, you may be able to borrow up to five-and-a-half times your income. What other factors impact how much I can borrow?Monthly outgoingsLenders will want to know how you spend your money as part of an affordability assessment. You are likely to get questions about:
Your lender may also request recent bank statements and payslips to support your application. Read our guide to saving for a mortgage deposit to find out more about keeping outgoing costs down. Alternatively, visit our My Money Health Check tool for a list of expert advice that will help you manage your finances. Interest ratesInterest rates play a key role in how much you might be able to borrow. In most cases, lenders will ‘stress test’ any proposed mortgage repayment plan to make sure you could withstand a rise in interest rates. Use our mortgage interest rate rise calculator to see how your mortgage payments would be affected if your interest rate increased. If you have a fixed-rate mortgage, interest rate rises won’t affect you until the end of your fixed-rate period. But with a variable-rate mortgage, your interest rate could rise or fall at any point during your term.
How to calculate your mortgage qualificationWhat’s behind the numbers in our ‘How Much Can I Borrow?’ mortgage calculatorWhen buying a home, the question “How much can I borrow?” should be the second question you ask. The most important consideration is, “How much house can I afford?” That’s because, even with all the angst involved in applying for and being approved for a home loan, lenders are often inclined to loan you more money than you expect. That’s a surprising — and important — reality. As much as you want to buy a home, lenders want to loan you money. And the bigger the loan, the happier they are. You’ll know why when you see the estimate of the interest you’ll pay over the life of the loan. It’s a really big number. But if you know how much home you can afford, of course, you’ll want to learn how much you can borrow. The NerdWallet “How much can I borrow?” calculator can give you a solid estimate. The calculator considers standard mortgage payment elements, such as principal and interest. Then, we take things a few steps further, factoring in taxes, insurance — even homeowner association dues — to help determine a real-life monthly payment. We also examine your income and debt, just as a lender would, to determine the maximum home loan amount you’re likely to qualify for. Getting ready to buy a home? We’ll find you a highly rated lender in just a few minutes. Enter your ZIP code to get started on a personalized lender match. ZIP code What a ‘How Much Can I Borrow?’ calculator doesThe NerdWallet “How much can I borrow?” mortgage calculator utilizes an easy step-by-step process: To begin, input:
If you don’t know how much your recurring debt payments add up to in a month, click the “No. Help me!” button. We’ll walk you through typical debts, like car loans and student debt. At this point, we’ll estimate your property taxes and insurance. You can also adjust those numbers if you have specific estimates. Enter monthly HOA dues (if applicable) if you know what they’ll be. If not, you can always come back to this later. Now, your results will appear, including:
How to use a ‘How Much Can I Borrow?’ mortgage calculatorWith this calculator, you can run some “what-if” scenarios. For example, you may consider:
Mortgage affordability 101It’s not what you can borrow, it’s what you can affordIn some respects, the mortgage lending industry is working against your best interest. If you are deemed a qualified borrower, a lender is prone to approve you for the maximum it believes you can afford. But in some cases, that amount may be too generous. Buying a home always means dealing with big numbers. And the impact to your budget may seem to be a stretch, particularly in the beginning. The challenge is buying a home that meets your current and future needs, without feeling like all of your money is in your home — leaving you without the financial freedom to travel, save for other priorities and have a cash flow cushion. Now that the NerdWallet ‘How much can I borrow calculator’ has given you an idea of your buying power, you may want to gut-check the number by:
What factors impact the amount you can borrowLenders consider several factors in determining the amount you qualify for, including:
Looking for a mortgage? Get the best rates when lenders compete for your business Answer a few questions and get personalized rate quotes from NerdWallet's top lenders in minutes. ZIP code How can I qualify to borrow more?If you’re disappointed by the ‘how much can I borrow’ results, remember that there are many factors at work. Small improvements in one or more can make a substantial difference:
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