Thinking about moving? Here’s the question everyone asks first: “How much can we actually borrow?”
Let’s sort that out.
Your old mortgage doesn’t matter
Forget what you borrowed last time. Seriously.
Maybe you’re earning more now. Maybe you’ve cleared some debt. Maybe life’s changed completely.
Lenders don’t care what you got before. They care what you can afford right now.
So how do lenders actually work it out?
There’s no magic formula. Every lender does it slightly differently.
But they’ll all look at:
- Your income (and your partner’s, if you’re applying together)
- Loans and debts
- Credit cards
- Car finance
- Everyday spending
- Childcare costs
- Your credit history
- How long you want the mortgage for
Then they run their own numbers.
That’s why one lender might offer you more than another, even with identical information. Annoying, but true.
Is it just about salary?
No. Salary’s only part of it.
You’ve probably heard “four times your salary” thrown around. It’s a rough guide. Nothing more.
Here’s why it falls apart: picture two people, both earning £50,000.
One has no debts. The other’s got a car loan, credit card balances, and childcare bills.
Same salary. Very different borrowing power.
Lenders look at what’s left over each month, not just what comes in.
Applying with a partner?
Two incomes helps. But it’s not simple maths.
Lenders don’t just add your salaries and double what you’d get alone.
They look at your whole household picture — income and outgoings together.
Do debts actually hurt you?
Yes. Every month you’re paying off a loan or car finance is a month with less spare cash for a mortgage.
Things that count against you:
- Personal loans
- Credit cards
- Car finance
- Child maintenance
- Childcare
- Any other regular credit commitments
Having debt doesn’t rule you out. But it does shrink what you can borrow.
Worth checking your finances before you fall in love with a house at the top of your budget.
Why might this time be different?
Your life’s moved on since your last mortgage.
Pay rise? Paid off a loan? New expenses? All of it matters.
Lending rules shift too. So don’t assume £200,000 before means £200,000 again. You might get more. You might get less.
It’s a fresh assessment, every time.
What about the equity in your current home?
If you’re selling up, any equity you’ve built goes towards your next place. That’s a good thing — it cuts what you need to borrow, and you don’t need to save a deposit again.
But equity and affordability are two different things.
You could have loads of equity and still fail an affordability check. We cover this properly in our guide on how equity works when moving house.
Work out what you actually need first
Before you obsess over the maximum, do this simple sum:
New home: £400,000
Deposit: £100,000
You need to borrow: £300,000
Now check whether £300,000 looks realistic against your income and outgoings.
And just because you can borrow more doesn’t mean you should.
Can a calculator tell you the answer?
It’s a decent starting point. Pop in your income and outgoings, get a ballpark figure.
But treat it as a guess, not a promise. Different lenders, different calculators, different answers.
What’s a Mortgage in Principle?
You might’ve heard this called an Agreement in Principle or Decision in Principle too. Same thing.
It gives you a rough idea of what one lender might offer.
It is not a mortgage offer. You’ll still need a full application and proper checks before anything’s confirmed.
Don’t chase the maximum
Everyone asks “what’s the most I can borrow?”
Better question: “what can I comfortably pay each month?”
A bigger mortgage means a bigger house. It also means bigger repayments, every single month, for years.
Leave room for the unexpected. The biggest number a lender offers isn’t automatically the right number for you.
Quick answers
How much can I borrow moving home?
Depends on you. Income, debts, commitments, credit history — lenders weigh it all up.
Is it really four times salary?
Rough guide only. Your real number depends on affordability checks, not a simple multiple.
Can I borrow more this time?
Possibly, if your circumstances and the affordability check support it.
Do loans and car finance affect it?
Yes. Regular payments reduce what you can borrow.
Do I need a new affordability check if I already have a mortgage?
Yes. Always. Every application gets assessed fresh.
Bottom line
What you can borrow isn’t about what you earn or what you got last time.
It’s about the full picture — income, debts, commitments, and whether it all adds up.
Get your numbers sorted before house-hunting. It’ll save you a lot of heartache later.
This is general information, not personalised advice. Lending criteria vary by lender and depend on your circumstances. Your home may be repossessed if you don’t keep up mortgage repayments.
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