How This Tool Works
📋 Purpose
This calculator helps you understand your true buying power based on your income, savings, and target property price. Get a personalized affordability score, see how you compare regionally, understand the tax implications of your purchase, and make an informed decision between renting and buying.
⚙️ How It Works
- 1Enter postcode, income, deposit, and target price so we can build your affordability baseline.
- 2We pull real data where available (Land Registry sold prices, Bank of England rate) and use clearly marked benchmark estimates for regional salary and rental yield.
- 3We calculate mortgage payment, SDLT, loan-to-value, affordability level, and payment breakdown using transparent formulas.
- 4You get a clear affordability score, cost cards, interest-rate scenarios, and rent-vs-buy comparison for your location.
- 5Use the Complete Guide and related tools to pressure-test your plan before making an offer.
📋Enter Your Details
Provide your information to calculate your home buying affordability
🏷️ Property & Stamp Duty Options
No stamp duty on properties up to £425,000
3% surcharge applies on all purchase bands
Enter your details above to discover your home buying affordability
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Complete Guide
Quick Tips
Jump-start your understanding with these essential tips
Step-by-Step Guide
Follow these steps to get the most from this tool
Start with gross income (before tax): Include all sources: employment salary, self-employment profit (average last 2-3 years), rental income, investment returns, pension drawdown. Lenders verify income, so be accurate. For couples, add both incomes.
List all monthly expenses: Food (£300-500), utilities (£150-250), transport (£100-300), insurance (£100-200), childcare (£0-2,000+), subscriptions (£50-100), entertainment. Total these honestly. Lenders look at this when determining your mortgage capacity.
Why this matters: Lenders subtract your expenses from income to calculate "disposable income" available for a mortgage. High expenses = lower borrowing power, even with high income. A £60k earner with £2,000/month expenses can borrow far less than one with £800/month expenses.
Cross-tool context: Use UK Budget Income Planner to understand exactly where your money goes. You'll surprise yourself—most people discover hidden expenses (£100-200/month) when tracking carefully.
Advanced Topics
Deep dives for advanced users
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Frequently Asked Questions
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