Online calculators often suggest optimistic borrowing figures, but real mortgage affordability in 2026 is far more complex. Lenders assess income, outgoings, and long-term risk before approving any loan.
This guide explains how borrowing is calculated in practice and why two buyers on the same income can receive very different outcomes.
Income Is Only the Starting Point
Salary matters, but lenders focus on what remains after commitments. Variable income may be reduced or excluded depending on consistency.
Committed Outgoings Reduce Borrowing
Regular commitments significantly affect affordability.
- Car finance and personal loans
- Credit card balances
- Childcare and school fees
- Subscriptions and household costs
Stress Testing at Higher Rates
Even if you can afford payments today, lenders assess whether you could cope if rates rise in the future.
Deposit Size and Loan-to-Value
Larger deposits can unlock better rates and improve affordability outcomes, but they do not override spending issues.
Why Borrowing Figures Vary Between Lenders
Each lender applies its own affordability model. Choosing the right lender often matters more than headline rates.
Getting a Realistic Borrowing Figure
Understanding your true borrowing position early prevents wasted viewings and failed applications.
Speak to NexGen Finance About Affordability
NexGen Finance can help you understand realistic borrowing ranges and introduce you to an authorised mortgage adviser where appropriate.