How much should I spend on a mortgage?

Typically, people spend between 28% and 35% of their income on their mortgage. However, this amount isn’t one size fits all, and it’ll be different for everyone.

There’s no specific percentage you should aim to spend on a mortgage. What’s most important is that the amount is affordable. How much you pay each month depends on the size of your mortgage, your interest rate and how long you’ll have the mortgage for.  
 

Let us do the maths for you with our Mortgage calculator to see what your monthly payments could be. 

When you apply for a mortgage, the lender uses your income and outgoings to decide what would be an affordable amount for you to borrow. They test that with your monthly payments when you first get the mortgage, as well as how much your payments would be if your interest rate goes up.

Use our Mortgage affordability calculator to see what size mortgage you could qualify for. 

There are ongoing costs to consider as well as your mortgage repayment, such as essential household spending that might go up over time, like nursery fees or food bills.

If you experience a drop in income or your monthly outgoings increase, spending 28% of your income on a mortgage might not be affordable. 

Once you know what a mortgage will cost you each month, it’s helpful to work out your budget. Try to plan for a savings buffer or identify any regular expenses you could cut if needed. 

Use the free Budget planner to see how you can balance your income and spending.

When a lender decides how much money they’re willing to give you as a mortgage in principle, they weigh up a few factors.  

These include:

• your salary and any other income you receive

• your spending and debt payments

• if you have dependants like children or someone else you care for

• whether you’re employed permanently or on a contract

• any deductions from your pay like student loan payments or your pension

• your credit history, and

• your age.

Read more in What mortgage can I afford?

Lenders want to make sure you can manage your mortgage repayments, both now and in the future. 

While formal mortgage affordability assessments were scrapped in 2022, each lender will have their own evaluation they’ll use to decide if the loan is affordable for you. 

The eligibility rules vary between lenders, so it’s worth researching or speaking to an independent mortgage adviser. They can check who might be more likely to accept your mortgage application, particularly if you have a smaller deposit.

Find out What to do when your mortgage application is declined