MORTGAGES

CALCULATORS & GUIDES

Most UK lenders will lend between 4× and 4.5× your annual income. Some specialist lenders offer up to 5× or 5.5× income, particularly for high earners or professionals. Affordability assessments also consider your outgoings, credit commitments, and the stress-tested rate.

At 4× income, you would need a salary of £75,000. At 4.5× income you would need £66,667. If two people are buying, their combined income is used. Use our Salary for Mortgage calculator to see exact figures for any property price.

Monthly mortgage payments use the amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Our mortgage calculator handles this automatically.

As of June 2026, the average 2-year fixed rate is around 4.75-5.25% and the average 5-year fixed rate is 4.25-4.75%. Tracker rates are typically linked to the Bank of England base rate (currently 4.5%) plus a margin of 0.5-1.0%.

Fixed rates give certainty — your payment won't change if the Bank of England raises rates. Tracker mortgages can be cheaper initially but carry rate-rise risk. If rates are expected to fall (as many forecast for 2026-2027), a short-term tracker or 2-year fix may save money. If you want stability, a 5-year fix is the most popular choice.

Yes, in most cases. If your mortgage rate is higher than your savings rate after tax, overpaying gives a better risk-free return. Even £100-200 per month extra can save tens of thousands in interest and take years off your term. Most lenders allow 10% overpayment per year without early repayment charges — check your deal first.

For residential property in England, stamp duty is 0% up to £250,000, 5% from £250,001-£925,000, 10% from £925,001-£1.5M, and 12% above £1.5M. First-time buyers pay 0% up to £425,000. Second home buyers pay an additional 3% surcharge on the full price. Use our Stamp Duty Calculator for an exact figure.