⚡ Tabutility

How Much Mortgage Can You Afford on Every UK Salary? We Ran the Numbers

Published 13 August 2026 · Original data analysis · 8 min read

"How much mortgage can I afford?" is one of the most-searched money questions in the UK — and most answers stop at "4.5 times your salary." That's only half the story. The multiple is applied to your gross salary, but you repay the mortgage from your take-home pay — after Income Tax and National Insurance have taken their cut.

So we computed the full picture for every salary from £20,000 to £150,000, using 2025/26 tax rules: how much you can borrow, what it costs per month, and — the number almost nobody publishes — what share of your real take-home pay that repayment swallows.

Our assumptions: standard 4.5× income multiple, 25-year repayment term, 10% deposit, England & Wales 2025/26 tax and NI (no student loan or pension deductions). We show payments at a 4.5% rate and a 7% stress-test rate — the kind of check lenders actually run.

The Master Table: Borrowing Power by Salary

SalaryTake-home /moMax loan (4.5×)House price (10% dep.)Payment @4.5%% of take-homeStress @7%
£20,000£1,493£90,000£100,000£50033.5%£636
£25,000£1,793£112,500£125,000£62534.9%£795
£30,000£2,093£135,000£150,000£75035.8%£954
£35,000£2,393£157,500£175,000£87536.6%£1,113
£40,000£2,693£180,000£200,000£1,00037.1%£1,272
£50,000£3,293£225,000£250,000£1,25138.0%£1,590
£60,000£3,780£270,000£300,000£1,50139.7%£1,908
£70,000£4,263£315,000£350,000£1,75141.1%£2,226
£80,000£4,746£360,000£400,000£2,00142.2%£2,544
£100,000£5,713£450,000£500,000£2,50143.8%£3,181
£120,000£6,346£540,000£600,000£3,00147.3%£3,817
£150,000£7,607£675,000£750,000£3,75249.3%£4,771

The Finding Nobody Talks About: The Affordability Squeeze Climbs With Salary

Here's the counter-intuitive result. On £20,000, a maximum mortgage costs 33.5% of your take-home pay. On £150,000 — seven and a half times the salary — it costs 49.3%. The more you earn, the bigger the bite a maximum mortgage takes out of your real pay packet.

Why? Because the 4.5× multiple is applied to gross salary, but progressive tax means your take-home grows much more slowly than your gross. Between £100,000 and £125,140, the tapered personal allowance means you keep barely £53 of every extra £100 — yet the lender happily multiplies the full gross figure by 4.5.

Practical takeaway: if you earn over £60,000, borrowing the full 4.5× at today's rates likely puts you above the classic "keep housing under 35% of take-home" guideline. That's not a reason to panic — it's a reason to run your own numbers rather than trusting the multiple.
Run your own numbers in 10 seconds

Free mortgage affordability calculator — no signup, works in your browser.

Try the Mortgage Calculator →

What Salary Do You Need for a…?

Flipping the table around — here's the salary required at each price point, assuming a 10% deposit and the standard 4.5× multiple:

House priceDeposit (10%)Loan neededSalary requiredPayment @4.5%
£200,000£20,000£180,000£40,000£1,000/mo
£250,000£25,000£225,000£50,000£1,251/mo
£300,000£30,000£270,000£60,000£1,501/mo
£350,000£35,000£315,000£70,000£1,751/mo
£400,000£40,000£360,000£80,000£2,001/mo
£500,000£50,000£450,000£100,000£2,501/mo

Remember these salary figures can be combined incomes — a couple on £30,000 each clears the £60,000 needed for a £300,000 home.

The 7% Stress Test: Can You Still Afford It?

Lenders don't just check today's rate — they test whether you'd cope if rates jumped. Our stress column shows repayments at 7%. The gap is brutal: on a £50,000 salary, the maximum mortgage goes from £1,251 to £1,590 a month — from 38% to 48% of take-home. On £100,000, the stressed payment hits £3,181, over 55% of monthly net pay.

This is exactly why lenders sometimes offer you less than 4.5× — the stress test binds before the multiple does.

Three Ways to Improve What You Can Actually Afford

  1. Bigger deposit beats bigger multiple. Every £10,000 of extra deposit cuts roughly £56/month off a 25-year mortgage at 4.5% — and can unlock cheaper rate bands at 15% and 25% deposits.
  2. Check your real take-home first. Student loans, pension contributions and salary sacrifice all change the arithmetic. Our UK salary take-home tables show the true net figure for every salary from £20,000 to £200,000.
  3. Longer term ≠ cheaper mortgage. Stretching from 25 to 35 years cuts the monthly payment but adds tens of thousands in interest. Use it as a safety valve, not a plan.

Method Notes

All figures computed by Tabutility, August 2026. Take-home pay uses 2025/26 England & Wales Income Tax bands (personal allowance £12,570 with taper above £100,000) and Class 1 employee NI (8% between £12,570–£50,270, 2% above). Mortgage payments use the standard amortisation formula over 25 years. Real lender offers vary with credit history, outgoings and lender policy — this analysis shows the standard framework, not financial advice. You're free to cite or reproduce these tables with a link to this page.

FAQs

How many times my salary can I borrow?

4.5× gross salary is the standard cap most UK lenders apply. Some stretch to 5–5.5× for higher earners or professionals.

What salary do I need for a £300,000 house?

About £60,000 (single or combined) with a 10% deposit — £270,000 borrowed at 4.5×.

What percentage of take-home pay should a mortgage be?

Under 35% is the classic guideline. Our data shows maximum borrowing at current rates exceeds that for most salaries above £30,000.

Why do higher earners feel more squeezed?

The multiple uses gross pay, but repayments come from net pay — and progressive tax means net pay grows slower. At £150,000 a maximum mortgage takes 49% of take-home versus 34% at £20,000.

See your full take-home pay breakdown

Tax, NI and net pay for any UK salary — instant and free.

UK Salary Calculator →

Related reading: Second Job Tax UK · What Is a Good Rental Yield? · How Much Do You Need to Retire?