How Lenders Decide How Much to Lend
UK mortgage lenders use two primary methods to determine maximum lending: the income multiple and the affordability assessment. The income multiple is a quick rule of thumb, while the affordability assessment is a detailed look at your actual cash flow.
Factors That Increase Your Maximum Borrowing
- Higher income or combining incomes on a joint application
- Excellent credit score and clean credit history
- Low levels of existing debt and commitments
- Larger deposit (reduces lender risk)
- Stable employment history
- Choosing a lender that offers higher multiples (e.g., 5×)
Factors That Reduce Your Maximum Borrowing
- High monthly debt commitments (loans, credit cards, car finance)
- Poor credit history or missed payments
- Small deposit (high LTV = higher risk = lower loan amount)
- Variable or inconsistent income
- Dependants and childcare costs
- Being close to retirement age