Most mortgage lenders will lend you around 4 to 4.5 times your income. So a single buyer earning £35,000 could typically borrow up to about £140,000 to £157,500, and a couple earning £60,000 between them up to about £240,000 to £270,000. Some lenders will go higher, and some will offer less. The real figure depends on your outgoings, your credit history and the size of your deposit.
This guide explains how lenders work out what you can borrow in Northern Ireland, what can increase or reduce it, and how to get an accurate figure before you start viewing homes.
How do lenders work out how much I can borrow?
Lenders use two checks. First, an income multiple: a cap on how many times your income they’ll lend. Second, an affordability check: a detailed look at whether you could keep up the payments, including if interest rates went up.
For the affordability check, lenders look at:
- Your income. Basic salary counts in full. Overtime, bonuses and commission are often counted in part, usually if you can show a history of receiving them. If you’re self-employed, most lenders want two years of accounts or tax calculations.
- Your outgoings. Car finance, loans, credit card balances, childcare and other regular commitments all reduce what you can borrow.
- Your credit history. Missed payments, defaults or a lot of recent credit applications can reduce the amount or limit which lenders will consider you.
- Your deposit. A bigger deposit means a lower loan-to-value, which opens up more lenders and usually better rates.
- The property. The lender’s valuation sets the maximum they’ll lend against, whatever price you’ve agreed.
Examples: what could I borrow?
These are rough guides at 4 and 4.5 times income, before a lender’s affordability check:
| Household income | At 4 × income | At 4.5 × income |
|---|---|---|
| £30,000 | £120,000 | £135,000 |
| £35,000 | £140,000 | £157,500 |
| £45,000 | £180,000 | £202,500 |
| £60,000 | £240,000 | £270,000 |
| £75,000 | £300,000 | £337,500 |
Add your deposit to the amount you can borrow to get a rough property budget. You can try your own figures on our borrowing calculator.
Can I borrow more than 4.5 times my income?
Sometimes. Some lenders will lend 5 times income or more to higher earners, to people in certain professions, or to buyers with a larger deposit. These options aren’t available to everyone, and the affordability check still applies. This is one of the areas where an adviser can make the biggest difference, because the lenders that stretch furthest aren’t always the ones on the high street.
How much deposit do I need?
Most lenders ask for at least 5% of the purchase price. A 10% or 15% deposit usually gets you a noticeably better rate, and the lowest rates are generally kept for buyers with a deposit of 40% or more. If saving a deposit is the hurdle, Co-Ownership lets you buy a share of a home in Northern Ireland and rent the rest, so the deposit you need is smaller.
Borrowing in Northern Ireland
House prices in Northern Ireland are lower than in much of the UK, so the same income often goes further here. The mortgage rules are the same as the rest of the UK, but not every lender treats every property the same way. Some are more cautious about certain rural homes or properties with non-standard construction, so knowing which lenders will consider your home can save you time and a wasted application.
How to increase what you can borrow
- Pay down or clear loans and credit card balances before you apply.
- Check your credit file with the main credit reference agencies and correct any mistakes.
- Make sure you’re on the electoral roll at your current address.
- Avoid applying for new credit in the months before your mortgage application.
- Apply jointly if you’re buying with someone else, so both incomes count.
- Choose a longer mortgage term, which lowers the monthly payment, though you’ll pay more interest overall.
Questions people ask
Does my partner’s income count?
Yes, if you apply jointly. Lenders will usually add your incomes together and apply their income multiple and affordability check to the total, taking both sets of outgoings into account.
Can I get a mortgage if I’m self-employed?
Yes. Most lenders want two years of accounts or tax calculations, and some will consider one year. They usually look at your salary and dividends if you run a limited company, or your net profit if you’re a sole trader.
Will an agreement in principle affect my credit score?
Many lenders use a soft search for an agreement in principle, which doesn’t affect your credit score, but some use a hard search. We’ll tell you which a lender uses before we apply.
How much will my monthly payments be?
That depends on the amount you borrow, the interest rate and the mortgage term. As a guide, a longer term lowers your monthly payment but increases the total interest you pay. We’ll show you the monthly cost and the total cost of each option in writing.
What our clients say
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How McDowell can help
We’re a Northern Ireland based mortgage broker with over 30 years’ experience. On a free call we’ll look at your income, outgoings and deposit, tell you what lenders are likely to offer, and find the ones that suit you best. Find out more about first-time buyer mortgages or moving home, or book a free call below.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is general information only and isn't personal advice. Mortgage and protection products depend on your circumstances, so please speak to one of our advisers before making a decision.
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