First Home · Full Kit

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  • All 13 modules (10 remaining)
  • 9 interactive calculators including deposit planner and affordability stress test
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  • New build module: show homes, snagging, and NHBC warranty
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First Home · Module 04
04
Module 04 · Worksheet

Affordability Planner

How much can you borrow? How much should you borrow? These are different questions - and the gap between the answers is where your financial safety lives.

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Knowing how much you can borrow is not the same as knowing how much you should borrow. This module helps you find both numbers - and understand the gap between them.

How mortgage lenders calculate affordability

Most UK lenders will offer between 4x and 4.5x your combined annual income as a maximum mortgage. Some lenders go up to 5x or 5.5x for higher earners or certain professions. This is a rule of thumb, not a guarantee - they'll also stress-test your finances against potential rate rises.

Your existing debts matter significantly. Car finance, personal loans, and credit card minimum payments all reduce how much a lender will offer. For every £100/month in committed debt payments, your borrowing capacity typically falls by around £10,000–15,000 depending on the lender.

Borrowing your maximum is usually a mistake. Just because a lender will offer you £350,000 doesn't mean you should take it. Stress-test your monthly payments against a rate 2–3% higher than today's - that's the scenario you need to be comfortable with.

How much can we borrow?

£
£
£
£
Conservative (4x)
£ -
Comfortable (4.5x)
£ -
Stretch (5x)
£ -

What would we actually pay each month?

Enter a mortgage amount and rate to see your estimated monthly repayment. Run this at the current rate and also at 2% higher - that's your stress test.

£
%
yr
Monthly repayment
£ -
At rate + 2%
£ -

Our budget decision

The lender will tell you the maximum. You decide the right amount. This is often the most important financial decision of the exercise.

Before you move on

Educational worksheet only. Not financial advice. The Investing Couple is a personal finance content brand. For mortgage, legal or financial advice specific to your situation, speak to a qualified adviser.