How much can I borrow for a mortgage when you're moving home?

If you're wondering how much can I borrow for a mortgage, the starting point for almost every UK lender is your income multiple - a simple calculation of your annual income multiplied by a set factor.

Most mainstream lenders will offer between 4 and 4.5 times your annual income as standard. A growing number of lenders now stretch to 5 or 5.5 times income for applicants with a clean credit history and secure employment, and some will go to 6 or 6.5 times income for certain professionals, such as doctors, solicitors, and accountants, or for other high earners.

The table below shows illustrative borrowing amounts at different multiples. These are estimates only - your actual offer depends on the full affordability assessment covered further down this guide.

If you're buying with a partner, most lenders will use both incomes in full when calculating your income multiple, rather than the older approach of counting one income in full and the second at a reduced rate. This means two moderate salaries can add up to significant borrowing power.

A small number of lenders still cap how much of the lower earner's income they'll count, particularly if there's a large gap between the two salaries. This varies a lot between lenders, so it's worth comparing options rather than assuming every lender treats joint applications the same way.

The income multiple gives you a starting estimate, but it isn't the whole picture. Every lender runs a full affordability assessment that looks at your income, outgoings, and credit history in detail before confirming how much you can actually borrow. If your credit history includes missed payments or defaults, some mainstream lenders will reduce the multiple they offer, though adverse credit mortgage options exist through specialist lenders.

In August 2022, the Bank of England withdrew its mandatory affordability stress test, which had required lenders to check that borrowers could still afford repayments at a set number of percentage points above the standard variable rate. That specific rule no longer applies.

Lenders haven't stopped stress testing altogether, though. Each lender now sets its own stressed figure - a higher, hypothetical rate used purely to check you could still manage repayments if rates rose after you complete. This is a common reason borrowers are offered less than they expected: the lender isn't testing the rate you'll actually pay, but a more cautious hypothetical figure of its own choosing.

Because each lender now sets its own approach, the multiple and the stressed figure you're assessed against can vary noticeably between lenders, which is another reason it's worth comparing more than one option before deciding.

Most guides to mortgage affordability are written for first-time buyers, but if you already own a home, your situation is different in some important ways. For general moving home mortgage advice, our hub guide covers the whole process - here, we're focusing specifically on how moving home changes your affordability picture.

Using equity as your deposit

If you own your current home, your deposit for the next one typically comes from the equity you've built up - the sale proceeds minus whatever you still owe on your existing mortgage. For example, selling a home for £300,000 with £120,000 left on the mortgage would leave £180,000 in equity to put towards your next purchase.

A larger deposit from equity reduces the loan-to-value on your new mortgage, which can open up better rates and, in some cases, a higher multiple. You'll also need to budget for the wider costs of moving, including Stamp Duty Land Tax on the new property, which can be a significant additional cost depending on the purchase price.

Porting your existing mortgage

If you're part-way through a fixed-rate deal, you may be able to port it - transferring your current mortgage to the new property instead of starting again. This can help you avoid early repayment charges, but porting still requires a fresh affordability assessment, and you'll need to qualify all over again based on your current circumstances. If you need to borrow more than your existing mortgage covers, the additional amount may be on different terms.

Timing and chain considerations

Moving home usually means being part of a chain, so confirming your borrowing capacity early matters more than it might for a first-time buyer. An Agreement in Principle gives you and everyone else in the chain confidence that your figures stand up before offers are accepted. If there's a gap between selling your current home and completing on the next one, bridging finance is an option, though it typically costs more than a standard mortgage and needs to be considered carefully.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it, so it's worth thinking through your repayment capacity at every stage of a move, not just at the point of application.

If you're self-employed, a limited company director, or work as a contractor, lenders assess your income differently to a standard PAYE applicant. It's a common reason people assume they'll be offered less, though an advisor familiar with mortgage for self-employed borrowers can often find lenders whose criteria suit your situation better than you'd expect.

Sole traders

Lenders typically use your net profit after expenses, usually averaged across the last two to three years of tax returns. If your profits have fluctuated, which is common, some lenders will use the lower of the two most recent years, while others will average across the period, so the lender you approach can make a real difference to your figure.

Limited company directors

Most lenders look at salary plus dividends actually drawn from the company, rather than total profit. If you reinvest a significant share of profit back into the business each year, this can understate your true earning capacity, though some specialist lenders will consider retained profits as well.

Contractors and freelancers

Some lenders will annualise your day rate, multiplying it by a set number of working weeks, which can produce a higher income figure than standard PAYE evidence would show. This usually requires a current contract in place and a clean history of contracting, typically at least 12 months.

If the figure you've been offered feels lower than you hoped, there are several practical steps that can improve how much you can borrow for a mortgage before you apply.

If existing debts are a big part of the problem, a debt consolidation mortgage is one option worth discussing with an advisor, though it means securing those debts against your home, so it needs weighing up carefully rather than treated as an automatic fix.

Online calculators are a useful starting point, but they use generic income multiples and can't account for your specific outgoings, credit profile, or employment type. If you want a realistic answer to how much can I borrow for a mortgage in your situation specifically, speaking to an advisor is the more reliable route.

A Financial Conduct Authority-regulated mortgage advisor can look at your full circumstances and compare a wide range of lenders to find the ones most likely to offer you the amount you need, on terms that suit you. You can check any firm's authorisation on the Financial Conduct Authority register.

If you're moving home instead of buying for the first time, our moving home mortgage advice guide covers the wider process. If you're a first-time buyer, see our separate guide to how much can I borrow for first-time buyers instead, as the affordability picture is different without existing equity.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. If money worries are affecting your ability to plan a move, free and impartial guidance is available from MoneyHelper (moneyhelper.org.uk, 0800 138 7777).