Two friends. Same salary. Totally different mortgage offers.

Think your income decides what you can borrow? It’s deeper than that. Discover why affordability goes far beyond income, and what really shapes how much you can borrow.

Picture this: two friends, both earning the same salary, both ready to buy their first home. But when they each speak to a lender, the numbers don’t match. One’s approved for a higher mortgage, while the other’s told to scale back. It doesn’t seem fair, right? That’s because your borrowing power isn’t just about how much you earn — it’s about what’s left after life happens.

Understanding how lenders see ‘affordability’

When you apply for a mortgage, lenders don’t just look at your salary. They look at how much of that income actually remains after your monthly commitments. Things like credit cards, car finance, student loans, childcare, and even Netflix subscriptions can all reduce your disposable income — and that’s what lenders focus on.

Most people have heard the phrase ‘you can usually borrow around 4.5 times your income’. While that’s a good guide, it’s not guaranteed. If you have higher outgoings or dependents, that multiple can fall — sometimes significantly.

Why two people on the same salary can borrow different amounts

Let’s go back to those two friends. They both earn £40,000 a year. But one has a car loan, a credit card balance, and childcare costs. The other rents a smaller flat, has no debts, and lives a little more simply. The second friend might borrow closer to £180,000, while the first might be capped at £150,000.

It’s not personal — it’s maths. Lenders use affordability models that assess your disposable income and apply stress tests to make sure you could still afford payments if rates rise.

How to strengthen your borrowing position

If you’re preparing to apply for a mortgage, there are steps you can take to give yourself the best chance of borrowing what you need:

• Pay down short-term debt where possible.

• Avoid new credit applications in the months before applying.

• Review your spending habits — small savings can add up.

• Make sure you’re on the electoral roll and your credit file is accurate.

• Speak to a mortgage broker early. We can calculate realistic figures before you apply.

What about joint applications?

If you’re buying with a partner or friend, lenders will look at both incomes — but also both sets of outgoings. So while combining salaries can help, shared debts or childcare costs can still limit borrowing. The goal is to find balance between your joint income and commitments.

The bigger picture lenders consider

Lenders also factor in things like your job stability, contract type, and how long you’ve been employed. They’ll look at your credit history and how consistent your income is. For self-employed applicants, they’ll review your average profits over two or three years instead of one-off highs.

It all builds a picture of financial stability — not just income. That’s why two people earning the same can end up with different offers: their lifestyle, spending, and credit footprint tell different stories.

Where to start if you’re not sure what’s realistic

If you’re unsure how much you could borrow, a good place to start is an affordability review with a broker. We’ll look at your income, commitments, and future plans to give you a realistic figure before you start viewing properties.

It’s about removing the guesswork — so you know what’s possible before you fall in love with a home that’s out of reach.

Your home may be repossessed if you do not keep up repayments on your mortgage or other loan secured against it.

• Why do lenders use different affordability calculations?

  Each lender has their own affordability model. Some might be stricter on outgoings or apply different interest rate stress tests. That’s why your borrowing amount can vary between lenders.

• Can I increase my borrowing amount without earning more?

  Yes, by reducing your outgoings, paying off debts, or improving your credit score. Even small adjustments can make a noticeable difference.

• Do lenders count bonuses or overtime as income?

  Sometimes. Many lenders will include regular overtime or guaranteed bonuses if you can show a consistent track record. Others may only use your base salary, it depends on their policy.