How loan to income is worked out
Divide what you'd borrow by your gross annual income: £200,000 on £50,000 is 4.0 times income. For a joint loan, lenders usually add both incomes first.
The most you could borrow is your income times the lender's multiple. Lenders still check your spending and credit, so they may offer less.
Worked example
Borrowing £200,000 on a £50,000 income is an LTI of 4. At 4.5 times income you could borrow up to £225,000, so there's £25,000 of room.
Two applicants earning £42,000 and £28,000 who borrow £300,000 have an LTI of 4.29, against a limit of £315,000 at 4.5 times.
The 4.5 times guide
The Bank of England's Financial Policy Committee limits mortgages at 4.5 times income or more to 15% of new mortgage lending, so most mortgages stay below it. From 28 October 2026 the limit applies across the whole market rather than to each lender, so some lenders lend more at high multiples than others. It isn't a ban on any single loan.
What this calculator assumes
One multiple applied to combined income. Some lenders use other joint formulas, such as a higher multiple on the larger income, so treat the result as a guide.
Borrowing in the US?
The country choices above the inputs open separate local pages. US lenders look at monthly debt payments against gross monthly income, the debt-to-income (DTI) ratio, instead. Choosing United States opens that page and resets the inputs; amounts are not converted.
For the US version, use the US debt-to-income calculator in US dollars.
Inputs for the UK loan to income calculator
Total borrowing
The loan you want plus any you'd keep.
Your gross annual income
Your yearly income before tax.
Second applicant's gross annual income
For a joint loan. Enter 0 if you're applying alone.
Lender's income multiple
The most a lender lends as a multiple of income.
CALCULATOR QUESTIONS
UK loan to income calculator questions
How do you calculate loan to income?
Divide the loan by your gross annual income. A £180,000 loan on £40,000 is 4.5 times income.
What is a good loan-to-income ratio?
Below 4.5 suits most lenders. Higher ratios are possible but limited, and you'll need to pass an affordability check.
Do lenders add both incomes?
Usually, for a joint mortgage or loan, though some weight the second income less.
Is LTI the same as affordability?
No. Lenders also check your spending and debts, so a loan within the multiple can still be declined.