Worked example
Salary £60,000, multiplier 4, deposit £25,000: price £265,000, loan £240,000. At 4.5% over 25 years, estimated monthly payment £1,334.00. Change the multiplier to see how sensitive the price is — a lender may offer more or less than this rule of thumb.
Formula
Affordable price = annual salary × multiplier + deposit. Monthly payment uses the standard repayment mortgage formula. This does not include council tax, insurance, maintenance or other debts.
Frequently asked questions
Is 4 times salary a rule? No, it is a planning starting point only. Lenders check income, debts, deposit, credit history and outgoings.
Should I borrow the maximum? Not necessarily. Check the monthly payment against your real budget, including bills and an emergency fund.
Results are estimates for information only, not financial advice. Please check with a lender or adviser before deciding.