1. What is Mortgage By Salary Calculation?

The Mortgage By Salary calculation estimates how much you can borrow for a mortgage based on your annual income and a standard multiplier used by lenders. This gives you a rough idea of your borrowing potential before approaching lenders.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• \( Salary \) — Your annual gross income (£)
• \( Multiplier \) — Typically between 4-5 times your salary

Explanation: Lenders typically offer mortgages between 4 to 5 times your annual salary, depending on your financial circumstances.

3. Importance of Mortgage Calculation

Details: Understanding your potential mortgage amount helps in house hunting and financial planning. It sets realistic expectations before you start viewing properties.

4. Using the Calculator

Tips: Enter your annual salary before tax and select a multiplier (typically 4-5). The higher the multiplier, the more you can borrow but the stricter the lender criteria.

5. Frequently Asked Questions (FAQ)

Q1: Is this the exact amount I can borrow?
A: No, this is an estimate. Actual mortgage offers depend on credit score, debts, expenses, and lender criteria.

Q2: Can I get more than 5 times my salary?
A: Some lenders may offer higher multiples for high earners or with a larger deposit, but this is less common.

Q3: Does this include my partner's salary?
A: No, this calculates based on a single salary. For joint applications, you would combine both salaries first.

Q4: What about my deposit?
A: This calculator shows the mortgage amount only. You'll typically need a deposit (usually 5-20% of property value).

Q5: How accurate is this estimate?
A: It provides a good starting point, but speak to a mortgage advisor for a precise figure based on your circumstances.