The amount you can borrow for a mortgage depends on several factors, but the primary one is typically your income. Lenders use a formula based on your annual income to determine how much they’re willing to lend you.

Lenders generally offer 4 to 4.5 times your annual income (before tax). For example, if you earn £30,000 a year, you might be able to borrow between £120,000 and £135,000. Some high street lenders offer a multiple of up to 6 times income with one specialist lender offering 7 times income depending on your circumstances.

If you’re applying with a partner, the lender may combine both incomes.

There are other factors that lenders take into account such as your Credit score and deposit size.

Lenders will also carry out an affordability assessment to ensure that you can comfortably make the mortgage repayments based on your income and expenditure. They’ll stress-test against future interest rate rises.

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