On a £40,000 salary, many lenders may consider borrowing between four and 4.5 times income. This could suggest borrowing in the region of £160,000 to £180,000, depending on the lender and full affordability assessment.
However, income multiples are only a starting point. Lenders also review credit commitments, childcare costs, regular expenditure and apply stress testing against higher interest rates. A larger deposit may improve product access and interest rates but does not always increase borrowing capacity.
If applying jointly, combined income can significantly increase the available mortgage amount. A personalised affordability assessment provides a clearer figure than relying on general estimates.
Your home may be repossessed if you do not keep up repayments on your mortgage.