# Mortgage Affordability

> How lenders decide how much you can borrow, what an affordability assessment involves, and the stress test on future interest rates.

Canonical page: [/mortgages/mortgage-affordability](/mortgages/mortgage-affordability/) · Last reviewed: 2026-08-22

How much you can borrow is not simply a multiple of your salary. Lenders must check that a mortgage is genuinely affordable for you, both now and if rates rise.

## Key information

- Lenders assess your income, spending and existing debts, not just your salary
- Borrowing is often around 4 to 4.5 times income, but this is only a rough guide
- Lenders "stress test" whether you could still pay if interest rates rose
- A strong credit history and lower regular outgoings improve what you can borrow

## How lenders assess affordability

Under the FCA’s mortgage rules, a lender must assess whether you can afford the mortgage before offering it. That means looking at your income and your regular outgoings — things like other credit commitments, childcare, and everyday living costs — to judge whether the monthly payments are sustainable.

As a rough guide, many lenders will consider lending up to around four to four and a half times your annual income, but the actual figure depends on your wider circumstances. Two people on the same salary can be offered very different amounts.

## The interest rate stress test

Lenders also check whether you could still afford your payments if interest rates were higher than they are today. This is known as a stress test. In March 2025 the FCA clarified the flexibility firms have in how they apply this test, which for some borrowers has increased the amount they can borrow.

The stress test is a safeguard against taking on a mortgage that becomes unaffordable [if your rate goes up when a fixed deal ends](/mortgages/fixed-vs-variable-rates). It is one reason a lender may offer you less than you expect.

## Improving your position

Before applying, it can help to [reduce or clear other borrowing](/credit-borrowing/debt-consolidation), avoid taking on new credit, and make sure you are on the electoral roll and [your credit report is accurate](/credit-borrowing/understanding-your-credit-score). Bringing down regular committed spending frees up more of your income for a mortgage in the lender’s calculation.

## Your rights

- Lenders are required by FCA rules to assess affordability responsibly before granting a mortgage.
- You are entitled to a clear explanation of a lending decision, and you can complain if you believe you were treated unfairly.
- Getting a decision in principle does not commit you — it is an indication, not a binding offer.

## Official sources

- [MoneyHelper — Mortgages](https://www.moneyhelper.org.uk/en/homes/buying-a-home)
- [FCA — mortgage rule review](https://www.fca.org.uk/firms/mortgage-rule-review)
- [Financial Ombudsman Service](https://www.financial-ombudsman.org.uk)

## Related

- [First-Time Buyer Mortgages](/mortgages/first-time-buyer-mortgages/)
- [Mortgage Deposits](/mortgages/mortgage-deposits/)
- [Mortgage Calculator](/tools-calculators/mortgage-calculator/)
- [Budget Planner](/tools-calculators/budget-planner/)

## Sources

- FCA — [FCA sets out plans to help build mortgage market of the future](https://www.fca.org.uk/news/press-releases/fca-sets-out-plans-help-build-mortgage-market-future) (accessed 2026-08-22)
- MoneyHelper — [How much can you borrow for a mortgage?](https://www.moneyhelper.org.uk/en/homes/buying-a-home/how-much-can-you-borrow-for-a-mortgage) (accessed 2026-08-22)