How much can I borrow for a mortgage?
Most UK mortgage lenders will lend between 4 and 4.5 times your gross annual income. For joint applications, this is typically applied to the combined income. Some specialist lenders offer up to 5.5 times income for high earners or professionals. The actual amount depends on credit score, existing debts, deposit size, and lender criteria.
What is a mortgage stress test?
A mortgage stress test checks whether you could still afford the repayments if interest rates rose. Lenders use this kind of test to reduce the risk of borrowers overextending themselves. If your finances are tight, affordability may limit borrowing below the income multiple result.
What is a Decision in Principle?
A Decision in Principle, also called an Agreement in Principle, is a conditional statement from a lender showing what they may be willing to lend, subject to a full application and valuation. Estate agents often ask for one before accepting an offer.