🏡 How Much Can I Borrow for a Mortgage in 2025?
- Liam Drummond
- Mar 31
- 3 min read
Updated: Apr 10
Whether you're a first-time buyer, moving home, or remortgaging, one of the first questions you're likely to ask is:
"How much can I borrow for a mortgage?"
In 2025, with interest rates still fluctuating and lenders tightening affordability criteria, understanding how borrowing capacity is calculated is more critical than ever. In this blog, we explain what lenders look for, how much you could borrow, and how to maximise your mortgage options, with expert guidance from Drummonds Finance Group, based in Oxford & Bicester
💰 What Affects Your Mortgage Borrowing Amount?
Mortgage borrowing is never a one-size-fits-all figure. Lenders assess financial and lifestyle factors to determine how much they’re willing to lend.
Here’s what they look at:
1️⃣ Your Income
This is the starting point. Most lenders offer between 4 to 5.5 times your annual income, depending on your overall financial picture.
Types of income that can be included:
Basic salary
Bonuses or commission
Overtime (if regular)
Self-employed income (usually based on 2–3 years’ accounts)
Pension income
Child benefit or universal credit (some lenders)
Example: A couple earning £35,000 and £30,000 might be offered up to £325,000 jointly, depending on credit and commitments.
2️⃣ Your Monthly Outgoings
Your debt-to-income ratio is just as important as your salary. Lenders want to ensure you can comfortably afford repayments.
They’ll look at:
Personal loans or car finance
Credit card balances and minimum payments
Childcare costs
School fees or nursery payments
Subscriptions (e.g. gyms, streaming services)
3️⃣ Your Credit Profile
A good credit score can unlock higher borrowing limits and better mortgage rates. Key credit factors:
No missed payments
Low credit utilisation
Long credit history
No recent defaults or CCJs
Tip: Before applying, check your credit report using tools like ClearScore, Experian, or Checkmyfile.
4️⃣ Deposit Size
Your deposit affects your Loan-to-Value (LTV) ratio — the lower the LTV, the better your mortgage options.
Typical LTV brackets:
95% – Minimum deposit, fewer lenders available
90% – More options, competitive rates
75%-85% – Access to lower interest rates and flexible products
5️⃣ Employment Type
Lenders are more cautious with non-standard employment, but that doesn’t mean you can’t get a mortgage. You may need extra documentation if you are:
Self-employed or a sole trader
On a zero-hour contract
Recently changed jobs
Working under a limited company
At Drummonds Finance Group, we specialise in mortgages for self-employed clients and contractors — with access to flexible lenders that understand non-traditional income.
🧮 How Much Can You Borrow? Realistic Scenarios for 2025
Let’s look at a few sample cases:
Scenario | Income | Deposit | Potential Borrowing | Property Budget |
First-time buyer | £40,000 | £20,000 | £160,000–£200,000 | £180,000–£220,000 |
Self-employed (avg. 3 yrs) | £60,000 | £40,000 | £240,000–£300,000 | £280,000–£340,000 |
Couple (combined £75,000) | £75,000 | £50,000 | £300,000–£375,000 | £350,000–£425,000 |
Figures depend on credit score, outgoings, and lender policy. Speak to a broker for tailored calculations.
🧠 Don’t Rely on Online Calculators Alone
While online mortgage calculators give a rough estimate, they don’t consider your debts, spending habits, or credit score. This can lead to misleading figures and disappointment later.
A mortgage broker takes a full view of your circumstances, runs accurate affordability checks, and helps you understand exactly what you can borrow — before you apply.
🤝 Why Choose Drummonds Finance Group?
At Drummonds Finance Group, we provide:
✔️ Personalised mortgage affordability assessments
✔️ Access to whole-of-market lenders
✔️ Specialist options for self-employed and credit-impaired clients
✔️ Help with government schemes like Shared Ownership and Help to Buy
✔️ Stress-free guidance from application to completion
With offices covering Oxford, Bicester, and surrounding areas — we’re here to help you secure your dream home with clarity and confidence.
📞 Ready to find out how much you can borrow?
Contact our expert brokers today for a free, no-obligation consultation. We’ll help you navigate the 2025 mortgage market with ease.
⚠️ Important Warning
Your home may be repossessed if you do not keep up repayments on your mortgage.Mortgages are subject to status and affordability. The amount you can borrow depends on your individual circumstances, and rates may vary.
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