How Your Outgoings Can Matter Just as Much as Your Salary
Your salary sets the starting point, but lenders judge outgoings just as closely. Discover why what you spend matters as much as what you earn.
Most buyers think their income is the number that counts. The bigger the salary, the bigger the mortgage, right?
Not quite. Lenders look at more than payslips. They look at the flow of money in and out of your account. In many cases, your spending habits matter just as much as your salary — and sometimes more. This is where many buyers are caught by surprise.
Here is why your outgoings play such a big role, with real-life examples and a clear plan to keep your borrowing power strong.
The myth of salary-driven borrowing
It is easy to assume borrowing power is just a multiple of income. Four and a half times salary is the number most people hear. But in reality, that figure is only a ceiling. Lenders then test whether your lifestyle and commitments make that borrowing realistic. If your outgoings are high, the ceiling quickly lowers.
Case study: Same salary, different lifestyles
Take Alex and Jordan. Both earn £38,000 a year.
Alex has no loans, a modest lifestyle, and only a few regular bills. Jordan pays £300 for car finance, £200 for childcare, and carries £5,000 on a credit card. On paper, their salaries are the same. In practice, Jordan’s commitments mean their borrowing offer comes back tens of thousands lower. This is how outgoings shape results.
Why lenders care about outgoings
From a lender’s perspective, income is potential. Outgoings are reality. Your commitments show whether you can handle mortgage payments month after month. Regular costs like childcare or car loans reduce the disposable income left to cover a mortgage. Bank statements reveal how consistent and predictable your money management is.
How small changes make a big impact
The good news is that you can influence this part of the equation. Reducing or clearing a loan, cancelling unused subscriptions, or lowering high card limits can all improve affordability. Even modest changes in monthly commitments can shift a lender’s calculation in your favour.
Case study: The 90-day tidy-up
Leah planned to buy in six months. Her initial calculations came back tight. She spent three months reducing debts, lowering unused card limits, and cancelling forgotten subscriptions. By the time she applied, her borrowing power had increased enough to secure the home she wanted. Her salary had not changed. Her spending story had.
A 90-day action plan for buyers
1. Review your last three months of statements.
2. Mark every regular outgoing: essential, non-essential, or temporary.
3. Clear small debts or reduce high repayments where possible.
4. Lower unused credit limits to reduce perceived risk.
5. Keep spending stable and predictable in the run-up to applying.
This plan shows control, which is exactly what lenders want to see.
The Bottom Line
Your salary sets the stage. Your outgoings tell the full story. By shaping your commitments in advance, you give lenders the confidence to offer more. If you want a clear view of how your numbers translate into borrowing power, we can work it out together.
Your home may be repossessed if you do not keep up repayments on your mortgage or other loan secured against it.
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It is a starting point, but outgoings often decide the final figure.
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Yes. Even a £100 loan payment can reduce borrowing by several thousand.
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Most lenders look at around three months of bank statements to assess patterns.
